/A%20concept%20image%20of%20a%20self-driving%20car%20image%20by%20Gorodenkoff%20via%20Shutterstock.jpg)
Artificial intelligence (AI) is fast-tracking the once-distant dream of self-driving cars into a fast-approaching reality, igniting a fierce race among automakers to take the lead. With the autonomous vehicle market forecast to soar beyond $2.3 trillion by 2030, the scale of the opportunity is nothing short of extraordinary. Amid this whirlwind of innovation, Tesla (TSLA) continues to command the spotlight, led by CEO Elon Musk and celebrated for pushing the boundaries of electric and autonomous vehicle technology.
However, a new challenger is beginning to make waves. Ride-hailing powerhouse Uber (UBER) recently captured the market’s attention by unveiling a long-term partnership with Volkswagen (VWAGY) to bring fully autonomous vehicles to its platform in the United States. Under the agreement, Volkswagen will deploy its all-electric ID. Buzz AD vans on Uber’s ride-hailing network, beginning in Los Angeles.
Testing is expected to kick off later this year, with full-scale commercial service targeted for 2026. Over the next decade, the initiative is set to expand into multiple U.S. cities. With this major development in mind, let’s dive into the question of which stock, Tesla or Uber, looks like the stronger bet right now.
The Case for Tesla Stock
Tesla (TSLA) has long been popular among investors, standing out as much more than just an electric vehicle (EV) powerhouse. With bold expansions into energy storage, automation, and robotics, the Texas-based company continues to embody the spirit of disruptive innovation and technological leadership.
Presently valued at approximately $940 billion, the EV maker has faced a tough year, with its shares down more than 30% YTD amid some company-specific hurdles as well as broader market turbulence.

While Tesla’s valuation has certainly cooled off from its lofty highs, the stock continues to trade at an elevated 200 times forward earnings and 9.4 times sales. These figures remain well above the sector medians of 14.36x and 0.80x, underscoring the market's continued optimism and high expectations for the EV leader.
Tesla started 2025 on a rocky note, revealing disappointing first-quarter earnings on April 22 that missed Wall Street’s expectations across both top and bottom lines. The company reported total revenue of $19.3 billion, a 9% year-over-year decline that fell far short of the $21.3 billion analysts had projected. Adjusted earnings painted an even bleaker picture, coming in at just $0.27 per share, reflecting a massive 40% year-over-year drop and a 34.9% miss compared to analyst estimates.
Under the leadership of Musk, who has spent significant time in President Donald Trump’s White House advocating for a smaller federal government, Tesla’s core automotive business took a sharp 20% revenue hit, dropping from $17.4 billion to roughly $14 billion. The company attributed part of the decline to the necessary updates at its four vehicle factories to prepare for the launch of a refreshed version of its popular Model Y SUV.
Additionally, lower average selling prices and increased sales incentives weighed heavily on both revenue and profit. In light of these results, Tesla avoided making growth promises for 2025, instead stating that the company will “revisit our 2025 guidance in our Q2 update.”
Overall, Wall Street appears cautious about TSLA stock, maintaining a consensus rating of “Hold.” Of the 41 analysts offering recommendations, 16 advise a “Strong Buy,” two suggest a “Moderate Buy,” 13 give a “Hold,” and the remaining 10 maintain a “Strong Sell.” The stock is trading roughly in line with its consensus price target of $283.14.

The Case for Uber Stock
Since bursting onto the scene in 2010, San Francisco-based Uber Technologies (UBER) has revolutionized convenience, putting rides just a tap away. More than 55 billion trips later, Uber has transformed into a global powerhouse, moving people, food, and goods across cities worldwide. By reimagining mobility, Uber has reshaped urban living and opened up a world of new possibilities, making everyday life more connected and accessible than ever.
Sporting a market cap of around $166 billion, Uber has shown impressive resilience in 2025, standing strong even as broader market volatility rattled investors. The stock is up an impressive 32.6% so far this year.

Uber’s stock isn’t exactly cheap, trading at 31.3 times forward earnings and 3.70 times sales, above the sector medians of 17.46x and 1.37x. However, these figures still look far more grounded when stacked against Tesla’s eye-popping valuations.
Uber’s fourth-quarter earnings report, released on Feb. 5, exceeded top-line expectations by 1.7% and achieved impressive year-over-year revenue growth of 20%, reaching $12 billion. The real highlight, however, was its eye-popping EPS of $3.21, a dramatic leap from last year’s $0.66 that easily smashed the consensus forecast of $0.50.
Breaking down the performance by segment, Uber’s mobility division took the spotlight, generating $6.9 billion in revenue, a 25% jump from last year. Its delivery business wasn’t far behind, pulling in $3.8 billion with a 21% year-over-year climb. Meanwhile, the freight segment contributed roughly $1.3 billion, remaining almost flat year over year.
Looking ahead to the first quarter, Uber’s management is setting the bar high. The company expects gross bookings to land between $42 billion and $43.5 billion, pointing to a healthy 17% to 21% growth on a constant currency basis. On the profitability front, Uber is forecasting adjusted EBITDA between $1.79 billion and $1.89 billion, signaling a robust 30% to 37% year-over-year surge.
As the company gears up to reveal its fiscal 2025 first-quarter earnings before the market opens on Wednesday, May 7, Wall Street is buzzing with optimism for UBER stock, holding a consensus “Strong Buy” rating overall.
Of the 47 analysts offering recommendations, 35 advocate a “Strong Buy,” three give a “Moderate Buy,” and the remaining nine suggest a “Hold.” The average analyst price target of $89.43 represents potential upside of 11%, while the Street-high target of $115 suggests a 44% rally from current levels.

TSLA Vs. UBER: What’s the Bottom Line?
The momentum seems to favor the ride-hailing giant when comparing Tesla and Uber. Tesla is currently facing headwinds, including slowing growth, shrinking margins, and high valuations, which have prompted a more cautious stance from Wall Street. While the company remains a key player in the EV and autonomous vehicle markets, its struggles with falling revenues in key areas like its core automotive business have raised concerns.
On the other hand, Uber has demonstrated a more stable trajectory with strong earnings growth, impressive performance across multiple business segments, and strategic initiatives like its partnership with Volkswagen for autonomous vehicles. Plus, considering Wall Street’s positive sentiment toward the stock, Uber might be an attractive opportunity for investors right now.