Uber Technologies stock dropped Thursday on a report that Tesla is readying the launch of its robotaxi service for early next month.
Bloomberg reported that Tesla will launch a version of its robotaxi service in Austin on June 12, citing an unnamed source. The date could change and has not been officially announced by the company, however. Separately, Tesla Chief Executive Elon Musk wrote on X that Tesla "has been testing self-driving Model Y cars (no one in driver's seat) on Austin public streets with no incidents" for the past several days.
On the stock market today, Uber stock lost 4.5% to close at 84.30. The slide knocked Uber stock below its 21-day moving average after a recent breakout. Lyft stock lost 4% to end at 15.35.
The report may be reigniting investor concerns about robotaxis eating into Uber's dominance in the ride-hailing market. Uber stock slumped late last year on fears that autonomous vehicles from Waymo and Tesla would challenge its business.
Wedbush analyst Scott Devitt recently downgraded Uber stock to a neutral call. In a client note Thursday, he said he continues to believe that Tesla is a long-term threat to Uber's business model. He said investors should consider the phrase "gradually then suddenly" when weighing the threat of autonomous vehicles to Uber stock.
"An autonomous future is in its early days, but it is worthy of consideration that Uber's position may not be as solid as recent stock performance suggests when/if autonomous hits its stride," Devitt wrote to clients Thursday.
Uber Stock: What Is The Robotaxi Risk?
Uber, meanwhile, has moved rapidly to answer concerns about robotaxis by partnering with autonomous-vehicle developers to add robotaxis to its app.
Uber is also partnered with Waymo in Austin and Phoenix, with an Atlanta partnership launching soon. Uber also has announced partnerships with AV developers such as Pony AI, WeRide, May Mobility, Volkswagen and Avride, which is part of Nebius Group.
Those partnerships had helped Uber stock bounce back this year. Shares are ahead 40% year-to-date, including Thursday's slide. The stock broke out to new highs in trading earlier this month before pulling back.
Uber stock had an IBD Composite Rating of 94 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
