Uber's Dominant Taxi Network Faces Competition from Tesla's Autonomous Taxi Ambitions

Uber's dominant taxi network and expanding profitability position the company well for long-term margin expansion from autonomy. Despite a temporary overextended valuation, sustained sentiment and higher multiples could persist as the autonomous transport opportunity matures. However, Tesla's grand entrance into the autonomous taxi market and potential disruption of Uber's business model pose a latent vulnerability for the company.