Latest news with #Robotaxi
Globe and Mail
16 hours ago
- Business
- Globe and Mail
Uber Stock Is Still a ‘Top Pick,' Says BMO Capital Despite Tesla (TSLA) Robotaxi Jitters
Shares of ride-hailing and delivery giant Uber (UBER) fell roughly 5% in yesterday's trading. The decline follows news of Tesla's (TSLA) upcoming Robotaxi launch in Austin on June 12. Still, BMO Capital Top analyst Brian Pitz remains confident in Uber's long-term strategy and growth prospects. The five-star analyst sees the recent dip as a buying opportunity and reiterated his Outperform rating and $101 price target, calling Uber a 'Top Pick' in the sector. Confident Investing Starts Here: Uber's AV Plans and Valuation Signal Upside According to the analyst, the market has overreacted to Tesla's planned Robotaxi launch on June 12. Although the news drew headlines, Pitz notes that Tesla's rollout—limited to just 10–20 vehicles—is small when stacked against Uber's much larger plans. For instance, Uber's deal with Waymo, owned by Alphabet (GOOGL), will bring hundreds of autonomous cars to its app in the coming months. Uber also has active deals with May Mobility and China-based WeRide, which are set to roll out AVs (autonomous vehicle) in dozens of U.S. cities. BMO applauds Uber's move to ' drive international scale ' through its recent acquisition of Dantaxi, Denmark's largest taxi firm. The deal brings 3,500 drivers onto Uber's platform, and starting this summer, riders in Denmark will be able to book trips through the app. The firm expects this to 'increase adoption' by improving match rates and estimated time of arrivals (ETAs), while opening up more ways to use it at airports, during leisure activities, and for daily commutes. On the self-driving front, Pitz sees Uber as an AV winner. The company now works with more than 15 AV partners and plans to launch shared AV rides by 2026. These steps are already boosting usage in cities like Austin, where Uber sees steady demand. Importantly, BMO finds Uber's valuation compelling. With shares trading at 19x next-twelve-month (NTM) EBITDA, the stock is below its two-year forward average of 21x and significantly under the high end of 27x. That suggests meaningful upside potential if Uber continues to execute across global and autonomous growth areas. What Is the Prediction for UBER Stock? Overall, Wall Street is bullish on Uber Technologies' prospects, with a Strong Buy consensus rating based on 29 Buys and four Holds. The average UBER stock price target of $98.61 implies about 16.98% upside potential. See more UBER analyst ratings Disclaimer & Disclosure Report an Issue
Business Insider
a day ago
- Automotive
- Business Insider
Uber Stock Is Still a ‘Top Pick,' Says BMO Capital Despite Tesla (TSLA) Robotaxi Jitters
Shares of ride-hailing and delivery giant Uber (UBER) fell roughly 5% in yesterday's trading. The decline follows news of Tesla's (TSLA) upcoming Robotaxi launch in Austin on June 12. Still, BMO Capital Top analyst Brian Pitz remains confident in Uber's long-term strategy and growth prospects. The five-star analyst sees the recent dip as a buying opportunity and reiterated his Outperform rating and $101 price target, calling Uber a 'Top Pick' in the sector. Confident Investing Starts Here: Uber's AV Plans and Valuation Signal Upside According to the analyst, the market has overreacted to Tesla's planned Robotaxi launch on June 12. Although the news drew headlines, Pitz notes that Tesla's rollout—limited to just 10–20 vehicles—is small when stacked against Uber's much larger plans. For instance, Uber's deal with Waymo, owned by Alphabet (GOOGL), will bring hundreds of autonomous cars to its app in the coming months. Uber also has active deals with May Mobility and China-based WeRide, which are set to roll out AVs (autonomous vehicle) in dozens of U.S. cities. BMO applauds Uber's move to ' drive international scale ' through its recent acquisition of Dantaxi, Denmark's largest taxi firm. The deal brings 3,500 drivers onto Uber's platform, and starting this summer, riders in Denmark will be able to book trips through the app. The firm expects this to 'increase adoption' by improving match rates and estimated time of arrivals (ETAs), while opening up more ways to use it at airports, during leisure activities, and for daily commutes. On the self-driving front, Pitz sees Uber as an AV winner. The company now works with more than 15 AV partners and plans to launch shared AV rides by 2026. These steps are already boosting usage in cities like Austin, where Uber sees steady demand. Importantly, BMO finds Uber's valuation compelling. With shares trading at 19x next-twelve-month (NTM) EBITDA, the stock is below its two-year forward average of 21x and significantly under the high end of 27x. That suggests meaningful upside potential if Uber continues to execute across global and autonomous growth areas. What Is the Prediction for UBER Stock? Overall, Wall Street is bullish on Uber Technologies' prospects, with a Strong Buy consensus rating based on 29 Buys and four Holds. The average UBER stock price target of $98.61 implies about 16.98% upside potential.
Miami Herald
2 days ago
- Automotive
- Miami Herald
Uber shares hit pothole ahead of Tesla Robotaxi debut
Looks like Uber (UBER) got caught in a hit-and-run. The ride-sharing company's stock got rear-ended by investors on May 29 following a Wedbush report warning about competition from electric-vehicle maker Tesla's (TSLA) very long-awaited Robotaxi, which is tentatively set for June 12. Don't miss the move: Subscribe to TheStreet's free daily newsletter Tesla CEO Elon Musk, who has been promising to deliver the Robotaxi for over a decade, gave the world update on the project's status in a May 29 post on X, formerly Twitter, the social media site he bought for $44 billion. "For the past several days, Tesla has been testing self-driving Model Y cars (no one in driver's seat) on Austin public streets with no incidents," he wrote. "A month ahead of schedule. Next month, first self-delivery from factory to customer." Wedbush, which has a neutral rating and $85 price target on Uber, believes the Tesla Robotaxi serves as a long-term threat to Uber's business model, according to The Fly. While management has executed well across mobility and delivery initiatives, the firm said, the lack of fresh catalysts coupled with shares trading at a premium to peers leaves limited upside if demand softens. The report left tread marks all over Uber's stock, with shares sliding 5.8% at last check. Other investment firms had a different view of the subject. More Tesla: Analyst sets eye-popping Tesla stock price targetFund manager has shocking Elon Musk and Tesla predictionLeaked Tesla policy should infuriate Tesla loyalists BMO Capital said that Uber's underperformance in light of the announced Robotaxi launch date was expected. The firm believes shares are oversold at current levels, given Uber continues to expand internationally with the purchase of Denmark's largest taxi company, Dantaxi; continued positive trends for AV adoption in Austin; and ongoing innovation for both Mobility and Eats. BMO reiterated an Outperform rating on "Top Pick" Uber, with a price target of $101. On May 23, Tigress Financial analyst Ivan Feinseth raised the firm's price target on Uber to $110 from $103 and kept a buy rating on the shares. Uber continues to benefit from strong ridership and delivery demand, ongoing innovation, and partnerships to drive substantial growth, the analyst said. Feinseth said he believes that autonomous vehicle opportunities will be a significant long-term upside catalyst. Related: Dara Khosrowshahi's net worth: The Uber CEO's wealth & income Uber is certainly no stranger to autonomous vehicles. In September, the company announced an expansion of its partnership with Alphabet's (GOOGL) Waymo to include Austin and Atlanta. Uber has been offering rides via Waymo in Phoenix since 2023. "Obviously, Waymo has a safety track record second to none. Consumers are loving the product," Uber CEO Dara Khosrowshahi said during the company's first-quarter earnings call in April."The team on the ground is doing a terrific job in terms of repairs and cleaning and recharging the cars, etcetera, to make sure that the Waymo's are available for rides," he said. Uber also has a partnership with Chinese autonomous vehicle company WeRide. On May 5, Uber said it would expand to 15 cities over the next five years, including some in Europe as well as the United States. Related: Uber price targets revamped as CEO unveils autonomous-vehicle expansion plans The announcement came five months after Uber's first collaboration with WeRide, where the companies launched a robotaxi service in Abu Dhabi, Uber's first international offering. Khosrowshahi said last month that Uber would "love to work with" Musk's company, according to Business Insider, and revealed that he owns a Tesla. "Great car," Khosrowshahi said. Asked if he has tried full self-driving, Khosrowshahi responded, "It is delightful, but I have to take over every once in a while. It is an absolutely great product. Again, the car is a terrific car." Musk has been dismissive of Waymo's technology, telling analysts last month that the issue with the company's cars "is it costs way more money." "The car is very expensive, made in low volume," he said during the company's earnings call. "Teslas are probably cost 25% or 20% of what a Waymo costs and made in very high volume." However, Forbes Senior Editor Alan Ohnsman said Tesla's Robotaxi "looks like a disaster waiting to happen." "Sometimes products launch when they're ready and sometimes products launch because someone just wants to put it out," he said. "In this case there is absolutely objectively no evidence that Tesla is ready for this step." Ohnsman said Musk believes that cost is the primary target for the Robotaxi, adding that "your iPhone has a better camera than what Tesla is putting on its car and your iPhone is not driving in the street and doesn't risk killing people." "I know many experts who research autonomous vehicle tech and are very concerned about this," he said. "Trying to be very low cost out of the gate for a technology you have not yet mastered doesn't really seem like the best idea, but that's where we are with what Tesla is doing." Tesla did not immediately respond to a request for comment. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 days ago
- Business
- Yahoo
Why WeRide Inc. (WRD) Went Up On Tuesday
We recently published a list of . In this article, we are going to take a look at where WeRide Inc. (NASDAQ:WRD) stands against other best-performing stocks. WeRide Inc. jumped by 18.22 percent on Tuesday to end at $10.77 apiece following its official expansion into Saudi Arabia with the deployment of its autonomous driving vehicles into the said country. In a statement, WeRide Inc. (NASDAQ:WRD) said it deployed robotaxis and robobus in Riyadh and AlUla as part of its preparation works for its upcoming robotaxi operations under the Uber app. WeRide Inc. (NASDAQ:WRD) said it is set to launch on Uber over the next few months, with full commercial operations in late 2025. Additionally, the expansion supports Saudi Arabia's Vision 2030 ambitions to build smart, sustainable cities by enhancing road safety, traffic management, and introducing innovative mobility solutions. A pick-up and delivery truck speeding down a busy city street. Earlier this month, WeRide Inc. (NASDAQ:WRD) fully launched driverless Robotaxi testing in Abu Dhabi—the first deployment of its kind in the region. It will also be extending its Robotaxi service coverage to Al Maryah and Al Reem Islands. Overall, WRD ranks 3rd on our list of best-performing stocks. While we acknowledge the potential of WRD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WRD and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
2 days ago
- Automotive
- Yahoo
Tesla Executive Admits That Self-Driving Is Going Nowhere Fast
Nearly ten years ago in 2015, rising tech entrepreneur Elon Musk made a bold announcement: Tesla vehicles would be fully driving themselves by 2017. The billionaire was talking about vehicles with level 5 autonomy — a designation by the Society of Automotive Engineers (SAE) commonly used as the benchmark for a full self-driving car that can drive where its passengers please with no intervention. He repeated those claims in January 2016, saying "summon should work anywhere connected by land and not blocked by borders" within two years. For example, if you're in Los Angeles and your Tesla is in New York, you'd be able to summon it to you from across the country — at least according to his vision, which many took as gospel. By June of that year, Musk called level 5 autonomy a "solved problem." He did so again in 2017. And again in 2018. Then the next year. And the year after that. You probably see where this is going. Now in 2025, Tesla isn't looking meaningfully closer to Level 5 autonomy than in 2015. Though Tesla rolled out its Autopilot features en masse that same year, it's only achieved SAE Level 2 — enough for a driver to "take their hands off the wheel and let their vehicle take control when driving in certain conditions." (That hasn't stopped numerous motorists from overestimating the system's capabilities and dying as a result.) That isn't likely to change anytime soon, according to an intriguing insider: Tesla's head of Autopilot and AI software, Ashok Elluswamy. The Tesla official was speaking on the Gobinath Podcast, an Indian-English interview show, where he admitted the EV company is still way behind its competitors — despite over a decade of self-driving development. "Technically, Waymo is already performing," Elluswamy admitted, referencing Google's autonomous vehicle program. "We are lagging by maybe a couple of years." This is despite Tesla's — also long-promised — fully self-driving Robocab service supposedly going live in Austin, Texas this coming June. It's not understood how this will work, as Tesla would need to demonstrate a vehicle capable of driving itself at SAE Level 4 to transport riders without the need for human intervention. So far, Musk has been uncharacteristically silent on the prospects of a Level 4 vehicle. Late in 2024, Greg McGuire, managing director of the autonomous vehicle research facility at the University of Michigan, told SAE Media that Tesla "is not — from what I've seen — ready for general Level 4 operation." "Will they be there by 2027? At [UofM], we still think there's a couple of key scientific barriers," McGuire said. That makes Musk's ever-stretching timeline for full self-driving — let alone a Robocab network — tenuous at best, and an absurd fantasy at worst. Still, a billionaire can dream. More on Tesla: Tesla's Head of Software Departs as Robotaxi Reveal Looms Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
