Shares of Uber Technologies Inc. UBER and LYFT Inc. LYFT dropped in Thursday’s pre-market session after Tesla Inc. TSLA CEO Elon Musk announced that the company's new Cybercab is being tested on San Francisco streets, exclusively for Tesla employees.
What Happened: Benzinga Pro data revealed that Uber’s shares fell by 2.12% and Lyft’s by 1.54% after Musk’s announcement. During Tesla’s earnings call, Musk shared that the ride-hailing feature is available for Tesla employees in the Bay Area, using a development app with a safety driver. The software for this service is already developed, Musk stated.
He also mentioned plans to expand the service to the public in California and Texas next year, though California’s regulatory process might delay the rollout. Texas is expected to approve more quickly. Musk anticipates the service will be available in California, Texas, and possibly other states by next year.
Musk expressed confidence in the Cybercab reaching volume production by 2026, aiming for at least 2 million units annually, potentially increasing to 4 million. This marks a significant shift for Tesla beyond vehicle and battery manufacturing.
Why It Matters: The announcement of Tesla’s Cybercab testing has impacted the stock performance of ride-hailing giants Uber and Lyft. Previously, both companies saw an uptick in their shares after Tesla’s announcement of the Cybercab’s production timeline.
The anticipation of Tesla’s entry into the ride-hailing market has been a topic of discussion, with Uber CEO Dara Khosrowshahi acknowledging Tesla’s potential in achieving vehicle autonomy at scale. However, Khosrowshahi also noted that he bets on Waymo by Google parent Alphabet Inc. for the next five years.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Tesla
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
