Wedbush Keeps Neutral Rating on Uber Technologies (UBER) Stock

On May 29, Wedbush kept its Neutral rating on Uber Technologies, Inc. (NYSE:UBER) with a price target of $85 ahead of Tesla’s Robotaxi launch event.

Scott Devitt from Wedbush Securities recently shared his views on Uber, highlighting that Tesla’s Robotaxi ambitions pose a long-term threat to Uber’s business model. Tesla’s Robotaxi launch event is set for June 12, according to a Bloomberg report. Devitt pointed out that the lack of clear catalysts in the near term will limit Uber’s upside.

The analyst noted that Tesla’s development may take time to scale, however, the emergence of driverless ride-hailing competitors adds pressure to Uber’s long-term outlook. Robotaxi, which will operate without human drivers, can disrupt Uber’s operations, added Devitt.

Uber Technologies, Inc.’s CEO, Dara Khosrowshahi, has expressed interest in collaborating with Tesla, mentioning that he would prefer a partnership over competition. Uber is working in collaboration with Chinese autonomous taxi service providers in Asia. However, Elon Musk has suggested Tesla plans to operate its ride-hailing network rather than relying on third parties. If Tesla’s Robotaxi effort gains traction, analysts see a downside for Uber as it could lose ride volume.

Uber Technologies, Inc. (NYSE:UBER) operates a technology platform that uses network and technology to power ride-hailing services. Uber develops technology applications supporting its different offerings on its platforms. The company has three segments: Mobility, Delivery, and Freight.

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