Tesla vs. Uber: Exciting Developments in the Robotaxi Sector

BMO Capital analyst Brian Pitz maintains his positive rating for Uber with a price target of $92, following Tesla's recent "ambitious" robotaxi event. Elon Musk, CEO of Tesla, revealed on the occasion that the cost per vehicle is expected to be under $30,000. However, size plays a crucial role in the rideshare market. BMO assumes that Tesla would need to invest around $100 billion to match Uber's ride offerings. Pitz emphasizes that Musk has not discussed the economic units or the scaling plans of the so-called "Cyber Cab." Given Uber's global presence, BMO expects the company to retain its position as the "primary distribution partner" for autonomous vehicles. This suggests that Uber could continue to hold a dominant position, even as pressure from innovative car manufacturers increases.