Uber, Lyft Shares Rally As Tesla Stock Tumbles: What's Going On?

Uber Technologies Inc UBER and Lyft Inc LYFT shares are racing higher Thursday following a report suggesting Tesla Inc TSLA will delay its robotaxi unveiling.

What Happened: Tesla shares turned sharply lower in early trading Thursday after Bloomberg reported that Tesla is delaying its planned Robotaxi Day. The event was expected to take place in early August, but has now been pushed back to October.

The report indicates that the move aims to give teams that are working on the project more time to build vehicle prototypes for the autonomous taxi service. People familiar with the matter said the delay has been communicated internally at Tesla.

Tesla’s robotaxi unveiling was initially set for Aug. 8, as announced by CEO Elon Musk in a social media post on X. Just last week, Musk responded to a post about crushing short sellers betting against the future of Tesla. 

"Once Tesla fully solves autonomy and has Optimus in volume production, anyone still holding a short position will be obliterated. Even Gates," Musk said in the X post.

Last quarter, Tesla missed estimates, but shares rallied as Musk reiterated his vision for the future around AI, Full Self-Driving and robotaxis.

"If somebody doesn't believe Tesla's going to solve autonomy, I think they should not be an investor in the company," Musk said on the earnings call. “We will, and we are.”

See Also: EXCLUSIVE: Can Elon Musk Propel Tesla Stock Back To Mag 7 Glory In Second Half Of 2024?

Why It Matters: Tesla’s autonomous taxi service plans position the company as a potential competitor for ride-sharing service providers like Uber and Lyft, the two largest ride-sharing companies in the U.S.

While Tesla shares are tumbling Thursday, Uber and Lyft shares are rallying. It’s worth noting that Uber and Lyft shares have trended lower in recent months, while Tesla shares have soared.

LYFT, UBER Price Action: At time of publication, Uber shares were up 4.63% at $72.47 and Lyft shares were up 3.91% at $13.44, according to Benzinga Pro.

Photo: Shutterstock.