Can Tesla Robotaxi, Google Waymo Replace Lyft And Uber? Former Exec Says 'These Things Are Expensive...'
Portfolio Pulse from Benzinga Neuro
Emil Michael, former Uber executive, expressed skepticism about the financial feasibility of robotaxis due to high production costs. He highlighted that the cost of a Waymo vehicle is around $300K, making it financially unviable to replace human drivers soon. RBC Capital Markets reduced Tesla's price target due to lower robotaxi pricing assumptions. Uber remains a top pick for travel stocks, with analysts noting that full autonomous vehicles are still years away. General Motors announced an $850 million investment for its Cruise self-driving unit.
June 25, 2024 | 7:38 am
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POSITIVE IMPACT
Uber remains a top pick for travel and transportation stocks, with analysts noting that full autonomous vehicles are still years away, which could be a long-term positive for the company.
Analysts' positive outlook on Uber, despite the delay in full autonomous vehicle adoption, suggests a favorable short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
General Motors announced an $850 million investment to cover operating costs at its loss-making Cruise self-driving unit, highlighting the financial challenges in the autonomous vehicle sector.
GM's significant investment in its Cruise unit underscores the financial challenges in the autonomous vehicle sector, leading to a neutral short-term impact on its stock.
CONFIDENCE 80
IMPORTANCE 55
RELEVANCE 50
NEUTRAL IMPACT
Alphabet's Waymo has been praised for its ability to navigate complex urban landscapes but faces scrutiny for traffic violations and collisions. The high cost of production remains a challenge.
While Waymo's technology is praised, the scrutiny and high production costs create a neutral short-term impact on Alphabet's stock.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
RBC Capital Markets reduced its price target for Tesla due to lower robotaxi pricing assumptions and a larger revenue share going to service providers like Uber and Lyft.
The reduction in Tesla's price target by RBC Capital Markets is a direct result of lower pricing assumptions for its robotaxi segment, which could negatively impact investor sentiment in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80