The stock price of Tesla plummeted by 8.78% last night to $217.80 per share after unveiling their driverless taxi service, known as Cybercab. Concurrently, shares of ride-hailing services like Uber and Lyft also experienced a decline in value over recent concerns about Tesla’s driverless taxi technology, dropping by approximately 10% last night.
Analyst John Colantuoni of Jefferies commented on Tesla’s ambitious goals but highlighted the lack of crucial supporting information, including technological advancements in Level 3 autonomous driving and their entry into the competitive taxi market.
Colantuoni believes that the widespread adoption of driverless taxis could lower costs, but other factors such as customer management and supply chain logistics across different regions and times pose challenges, giving established players like Uber an advantage, even if they transition to driverless taxis.
Currently, Waymo and various driverless car providers collaborate with Uber to optimize their fleet operations, suggesting a potential partnership between Tesla and Uber in the future.
TLDR: Tesla’s stock price dropped after the launch of their driverless taxi service, raising concerns about the challenges of entering the competitive ride-sharing market.
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