Tesla's Robotaxi Plans: Potential Threat Or Future Partner For Uber?
Portfolio Pulse from Anusuya Lahiri
BofA analyst Justin Post reiterated a Buy rating on Uber Technologies, Inc (NYSE:UBER) with a price target of $91, citing strong bookings and EBITDA growth. Post expects Uber's core bookings to accelerate and new verticals like Hailables and Grocery to drive growth. Despite potential competition from Tesla's robotaxi plans, Post sees a possible future partnership between Uber and Tesla. He remains constructive on Uber as a top travel and transportation stock.
April 29, 2024 | 6:58 pm
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NEUTRAL IMPACT
Tesla's focus on building a robotaxi capability for existing FSD vehicles is seen as a potential competitive threat to Uber, but BofA analyst Justin Post notes the focus is on unlocking use cases for Tesla customers, which could lead to a partnership with Uber.
While Tesla's robotaxi development is initially perceived as a competitive threat to Uber, the analyst's view that Tesla's primary goal is to enhance asset utilization for its customers and the potential for a future partnership with Uber suggests a neutral short-term impact on Tesla's stock.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 75
POSITIVE IMPACT
BofA analyst Justin Post reiterated a Buy rating on Uber with a price target of $91, highlighting strong bookings and EBITDA growth. Despite potential competition from Tesla's robotaxi, Post sees a possible partnership between Uber and Tesla.
The reiteration of a Buy rating and a high price target by a BofA analyst, along with the anticipation of strong bookings and EBITDA growth, suggests a positive short-term outlook for Uber. The potential competition from Tesla's robotaxi is noted, but the possibility of a partnership could mitigate negative impacts.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100