Following Tesla’s (TSLA) huge stock boost after the US election result, UBER stock saw a significant cold spell, tumbling in price this month. Opening Wednesday trading, Tesla stock was up almost 40% since the election. Conversely, shares of Uber were down about 7% over the same span.
Following the company’s positive Q3 earnings report on October 29, there was optimism surrounding Uber and its stock. Additionally, experts from Uber also gave a promising outlook on Q4 earnings. However, things took a turn when Donald Trump won the US election. There is little correlation between the two, however, a common point would inversely affect Trump’s campaign and Uber’s stock: Elon Musk and Tesla.
Following Tesla’s October Robotaxi event and the negative reaction from the press, TSLA stock fell while UBER rose. Not all was bad for Musk though, as he still had the US election to look forward to. New president-elect Donald Trump promised Musk a seat on his team if he won. Trump would deliver on this promise, giving Elon Musk the reigns over the new Department of Government Efficiency (DOGE). Musk and his companies Tesla and Space X all flourished following November 5. Musk’s net worth spiked a few hundred million, and Tesla/Space X stock surged. With its rival booming in price and the future of automated vehicles coated in Tesla, UBER went ice cold.
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In the last 30 days, UBER stock is down 13%, reversing its positive pump from Q3 earnings. However, some market analysts may see this as an opportunity for investors to buy the dip. As mentioned previously, one competition that stands between Tesla and Uber is automated vehicles. While Tesla is releasing its Robotaxi in 2025, Uber is also working on unveiling its Waymo Robotaxi. Waymo has already completed 150,000 rides in 2024 but may slow next year with Tesla’s Robotaxi debut.
Jefferies analyst John Colantuoni is one of the experts considering UBER as a buy now. The analyst has set a target of $100 for Uber stock. “Uber is uniquely positioned to support growth for autonomous vehicle developers,” Colantuoni wrote. “Robotaxis could significantly expand Uber’s total addressable market…given the resulting increase in supply would drive lower-priced AV offerings.”
