Uber And Lyft Stock Prices Surge After Telsa’s “Toothless” Robotaxi Revelation.

(VOR News) – On Friday, the electric vehicle manufacturer Tesla made the Uber news that had been anticipated for a long time about the robotaxi.

As a consequence, the stocks of ride-hailing app businesses Uber (UBER) and Lyft (LYFT) simultaneously increased, while the stock of Tesla experienced a decline.

The highly anticipated prototype of the robot axi that Tesla (TSLA-8.23%) has been working on was officially presented to the public by Elon Musk, the Chief Executive Officer of Tesla (TSLA-8.23%), during the evening of Thursday. The preliminary version of the product is referred to as “Cybercab.”

A lot of investors, on the other hand, were left with the idea that the event did not excite them or leave them feeling impressed. In addition to the fact that made a great deal of lofty Musk remarks, analysts pointed out that there was a lack of concrete information presented. In addition to this, they brought out the fact that there was an absence of specific details.

In the early morning hours of Friday, shares of Uber and Lyft both increased by 10 percent, while shares of Tesla fell by more than eight percent.

This Uber happened as a result of investors’ responses.

It is anticipated that the Cybercab will be the first vehicle that Tesla makes that is capable of performing driving responsibilities that are entirely automated.

There is a great deal of anticipation among fans about this aspect. There is still a need for a driver in Tesla automobiles, despite the fact that the company has software that gives help for autonomous driving. Despite the fact that the company develops software for autonomous driving, this is also the case.

Musk’s only comment regarding the Cybercab was that production will “probably” begin in 2026 or “before 2027.” This was the only thing he could say by himself. He was only able to supply this one indication out of all the others.

It was not possible for Musk to provide a definitive answer to the production date of the automobile. It is now anticipated that the price of the automobile will be lower than thirty thousand dollars. This is the current estimate.

When asked about his proposal for a network of robot vehicles, the CEO had earlier framed his notion of a robot-axi network as a combination of Uber and Airbnb.

If you are interested in learning more about his plan, go here. Through the process of connecting their automobiles to the infrastructure of this network, owners would have the option to make cash even while they were sleeping.

He went so far as to extend an invitation to everyone, particularly drivers for Uber and Lyft, to investigate the prospect of purchasing a significant number of Cybercab drivers together on Thursday.

He did this even though he wasn’t a member of Uber or any other companies.

Despite this, there were investors who did not have a positive attitude toward the possibility. In addition to stating that it was the best-case scenario for Uber, the Cybercab was described as “toothless” by someone who was educated about the subject.

John Colantuoni, an analyst at Jefferies, made this assertion in a client note that was sent out on Friday. The note was circulated to clients. He concluded by writing, “We consider the event to be a best-case outcome for Uber, given that Tesla did not provide verifiable evidence of progress toward (Level 3 autonomous driving) or quantify the number of robots planned.”

Given that investors are now allowed to concentrate on fundamentals, we think that Uber will respond favorably to this development. This is what we anticipate will happen.

SOURCE: QZ

SEE ALSO:

AT&T Is Offering a $10,000 Reward For Information Regarding Copper Wire Theft.