Will Tesla Disrupt The Ride Sharing Market?
(NASDAQ: TSLA) may be competing soon with Uber (NYSE: UBER). That's the plan, at least, with autonomous (self-driving) robotaxis at the center of Tesla CEO Elon Musk's long-term strategy. Musk is doubling down on investing in robotaxis and wants to roll out a more advanced model to consumers with no steering wheel, perhaps this summer. The eccentric CEO says that Tesla customers will be able to rent out their Teslas as self-driving taxis to make money, similar to Airbnb.
If Tesla is successful in getting a fleet of robotaxis to market, that could spell trouble for existing ride-sharing networks such as Uber and Lyft. But should investors of ride-sharing companies have genuine concerns about Tesla and robotaxi disruption? Let's take a closer look at the facts.
Tesla is putting an emphasis on robotaxis once again in 2024. During the first-quarter 2024 earnings call, Musk said that in August the company would be unveiling a new vehicle "purpose-built" as a self-driving taxi. In theory, this could present a large threat to existing ride-sharing networks such as Uber. The largest cost to mobile ride-sharing networks is the drivers themselves. If you could operate a fleet of self-driving taxis, that network could undercut Uber (as well as its smaller competitor Lyft) and still generate a profit. This is what Musk is trying to achieve with Tesla's robotaxi strategy.
Source Fool.com
Tesla Inc Stock
Currently there is a rather positive sentiment for Tesla Inc with 56 Buy predictions and 27 Sell predictions.
As a result the target price of 248 € shows a very positive potential of 50.8% compared to the current price of 164.46 € for Tesla Inc.
