Uber Technologies (UBER) shares hit an all time high on Friday after Tesla’s (TSLA) launch event for its supposed Uber-killer, a self-driving taxi service, fell short of expectations. On Thursday, Tesla revealed the CyberCab, a self-driving car intended for ridesharing, and a 20-seater "RoboVan". Although CEO Elon Musk laid out a vision of a fleet of CyberCabs taking over from traditional ride-hailing services such as Uber and Lyft, many details were left unclear.
Market analysts were underwhelmed by the launch, commenting that the reveal was less impactful than feared by Uber and Lyft investors. Analysts from Jefferies referred to the CyberCab as “toothless,” and dubbed the event a “best-case scenario for Uber.”
Analysts also highlighted that Tesla failed to provide concrete evidence of progress on its autonomous vehicles (AV) and noted that Uber is “uniquely positioned to back continuous growth for AV developers". Despite speculations about the potential cost-efficiency of running the RoboVans and CyberCabs compared to traditional rideshare, analysts from Bank of America pointed out that Tesla did not offer a specific business model for their proposed rideshare app.
Following the event, Uber's shares rose almost 10% to a record-breaking $85.66. Lyft (LYFT), a key competitor, also saw a near 10% rise in shares. However, shares of Tesla took a hit, falling 12% since the beginning of the year.