When Tesla announced its robotaxi debut, Uber's stock fell 5% — a reflexive tremor in a market still learning to read the autonomous vehicle landscape. Yet the deeper story is one of scale versus spectacle: while a handful of Tesla vehicles prepare to navigate Austin, Uber has quietly woven a web of partnerships across dozens of cities and continents. BMO Capital's Brian Pitz sees in the sell-off not a verdict, but an invitation — a reminder that in transformative industries, the loudest announcement rarely belongs to the eventual winner.
BMO Maintains Uber 'Top Pick' Despite Tesla Robotaxi Competition Concerns
The real race isn't won by the flashiest debut, but by the company that scales fastest.
Mark
Why does Tesla's robotaxi launch matter so much to Uber investors if it's only 10 to 20 vehicles?
Mimi
Because it signals that the autonomous vehicle future is arriving faster than some people expected. Even a small launch can spook the market when it comes from Tesla, which has a track record of capturing investor imagination. But the panic misses the actual competitive picture.
Mark
And what is the actual picture?
Mimi
Uber isn't trying to build its own robotaxi from scratch. It's partnering with companies that already have the technology—Waymo, WeRide, May Mobility. That's a different bet. Tesla is saying "we'll do it ourselves." Uber is saying "we'll integrate the best solutions as they become available."
Mark
Is that a stronger position?
Mimi
It depends on execution. If Waymo's cars work well and scale quickly, Uber wins. If Tesla's approach proves superior and they capture the market first, Uber loses. But Uber has more shots on goal. It's hedged.
Mark
What about the Dantaxi deal? How does buying a Danish taxi company help Uber compete with Tesla?
Mimi
It doesn't directly. But it shows Uber is thinking about the business differently. They're not just waiting for robotaxis to solve everything. They're improving the core platform—better driver supply, faster pickups, more reasons to use the app. That's a moat that works whether or not autonomous vehicles arrive on schedule.
Mark
So the stock price drop is just noise?
Mimi
Not noise exactly. It's a real repricing of risk. But BMO's argument is that the repricing went too far. The market saw Tesla's announcement and sold first, thought second. Uber's strategy is still intact.
Il Polso
- Tesla's June 12 robotaxi launch in Austin sent Uber shares down 5%, as investors instinctively feared a powerful new rival entering their territory.
- The threat, on closer inspection, is modest in scale — Tesla's initial fleet of 10 to 20 vehicles stands in stark contrast to Uber's existing autonomous partnerships with Waymo, May Mobility, and WeRide spanning dozens of U.S. cities.
- Uber is simultaneously pushing outward internationally, acquiring Denmark's Dantaxi and its 3,500 drivers to deepen platform reliability and unlock new ride occasions across Copenhagen and beyond.
- With shared autonomous rides planned for 2026 and partnerships with over 15 AV companies already in place, Uber is executing a diversified strategy rather than wagering on a single technology.
- Trading at 19x forward EBITDA — below its two-year average of 21x — the stock carries a valuation gap that BMO and 29 other buy-rated analysts believe the company's growth trajectory is positioned to close.
When Tesla announced its robotaxi debut, Uber's stock fell 5% — a reflexive tremor in a market still learning to read the autonomous vehicle landscape. Yet the deeper story is one of scale versus spectacle: while a handful of Tesla vehicles prepare to navigate Austin, Uber has quietly woven a web of partnerships across dozens of cities and continents. BMO Capital's Brian Pitz sees in the sell-off not a verdict, but an invitation — a reminder that in transformative industries, the loudest announcement rarely belongs to the eventual winner.
Uber's stock slipped roughly 5% after Tesla announced a June 12 robotaxi launch in Austin, triggering the kind of investor anxiety that tends to follow splashy autonomous vehicle headlines. But BMO Capital analyst Brian Pitz read the moment differently — reiterating his Outperform rating and $101 price target, and calling the dip a buying opportunity rather than a warning.
His case rests on the difference between announcement and execution. Tesla's initial robotaxi fleet will number just 10 to 20 cars. Uber, meanwhile, has built a broad coalition of autonomous partners — Waymo, May Mobility, and WeRide among them — with deployments already underway or planned across dozens of American cities. Rather than betting on a single self-driving technology, Uber has distributed its risk and its reach.
On the international front, Uber's acquisition of Dantaxi, Denmark's largest taxi company, adds 3,500 drivers and opens the platform to Copenhagen commuters, airport travelers, and leisure riders starting this summer. BMO sees the deal as a structural improvement to the platform itself — more drivers mean faster pickups and stronger daily habits.
The valuation picture reinforces the bullish case. At 19x next-twelve-month EBITDA, Uber trades below its two-year average of 21x, leaving room for multiple expansion if its autonomous and international strategies continue to deliver. With 29 analyst buy ratings and a Street consensus target near $99, the broader view on Wall Street echoes BMO's conclusion: in the race for autonomous scale, the flashiest launch rarely determines the final winner.
Uber's stock took a hit on the market yesterday, dropping about 5% as investors absorbed news of Tesla's robotaxi debut scheduled for June 12 in Austin. The sell-off reflected a familiar pattern: whenever a competitor makes a splashy announcement in the autonomous vehicle space, the ride-hailing giant feels the pressure. But at least one major analyst sees the moment differently. Brian Pitz, a five-star analyst at BMO Capital, views the dip not as a warning sign but as a chance to buy. He reiterated his Outperform rating and $101 price target, positioning Uber as a top pick despite the Tesla noise.
Pitz's reasoning hinges on scale and scope. Tesla's robotaxi rollout, while headline-grabbing, will begin with just 10 to 20 vehicles. Uber, by contrast, is already moving forward with a far more ambitious autonomous strategy. The company has inked deals with Waymo—the self-driving unit owned by Alphabet—to bring hundreds of autonomous cars onto its platform in the coming months. Beyond that, Uber is working with May Mobility and WeRide, a Chinese autonomous vehicle company, to deploy self-driving cars across dozens of American cities. The analyst sees Uber as positioned to win in the autonomous space precisely because it has hedged its bets across multiple partners rather than betting everything on a single technology.
The company is also making aggressive moves on the international front. Uber recently acquired Dantaxi, Denmark's largest taxi company, bringing 3,500 drivers into its network. Starting this summer, riders in Copenhagen and other Danish cities will be able to book rides through the Uber app. BMO views this acquisition as more than just a land grab—it's a play on improving the fundamental mechanics of the platform. Better driver availability means faster pickups, shorter wait times, and more reasons for people to open the app. The deal also opens doors to airport pickups, leisure travel, and daily commutes, expanding the occasions when someone might reach for Uber.
On the autonomous front, Pitz notes that Uber now partners with more than 15 different AV companies and is planning to launch shared autonomous rides by 2026. These partnerships are already showing results in cities like Austin, where the company is seeing steady demand for rides. The analyst frames this not as a defensive move but as evidence that Uber is executing on a genuine growth strategy.
The valuation story adds another layer to BMO's bullish case. Uber's stock is currently trading at 19 times its next-twelve-month EBITDA. That's below the company's two-year average of 21x and well below the high end of 27x that the stock has commanded. If Uber continues to deliver on its autonomous vehicle partnerships and international expansion, there's room for the multiple to expand—and with it, the stock price. BMO's $101 target implies roughly 17% upside from current levels.
Wall Street more broadly agrees with this assessment. The consensus among analysts is a Strong Buy rating, based on 29 buy recommendations against just four holds. The average price target across the Street sits at $98.61, suggesting the market sees meaningful upside ahead. For investors spooked by Tesla's robotaxi announcement, the message from BMO is clear: the real race in autonomous vehicles isn't won by the flashiest debut, but by the company that can scale the fastest and partner the smartest.
Citazioni salienti
The market has overreacted to Tesla's planned robotaxi launch. Tesla's rollout is small when stacked against Uber's much larger plans.— Brian Pitz, BMO Capital analyst
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