Uber, Lyft Shares Jump After Tesla's 'Toothless' Robotaxi Revealed - BNN Bloomberg

(Bloomberg) — Uber Technologies Inc. and Lyft Inc. rose in early trading after Tesla Inc.’s Elon Musk offered few details about the automaker’s plans for an autonomous vehicle service that could compete with Uber Technologies Inc. hitchhiking.

Uber shares rose as much as 5.4% and Lyft shares rose as much as 3.7% in premarket trading on Friday following Musk’s launch of a robotaxi called the Cybercab on Thursday night in California. Tesla shares fell as much as 6.9%.

Musk’s debut of the two-seater prototype and a Robovan concept that can carry up to 20 people disappointed Tesla investors who were hoping for more details. Although he said Cybercab production could begin in 2026 and cost less than $30,000, the CEO cautioned that he tends to be overly optimistic.

“We consider the event to be the best outcome for Uber,” said John Colantuoni, an equity analyst at Jefferies with a buy rating on the stock. In a report referring to Tesla’s taxi as “toothless,” it noted that the company has not provided verifiable evidence of progress toward automated driving capabilities nor quantified how many robotaxis it plans to manufacture.

Thursday was seen as a “make or break night” for Tesla shares, according to Mike O’Rourke, chief market strategist at JonesTrading. The event had already been postponed for two months and Tesla was under pressure to justify its high valuation and prove that it can lead the industry in autonomous vehicle technology.

Uber CEO Dara Khosrowshahi offered a sobering view on the future of autonomy earlier this week, saying he doesn’t see robotaxis becoming a significant part of the company’s fleet for years. The technology isn’t there yet, regulators are cautious and costs won’t be competitive for a while, he told Bloomberg Green’s Zero podcast.

“Safety is job number one,” Khosrowshahi said. “So I would say in the next three to seven years, we will start to focus on the economy.”