Uber's self-driving strategy faces challenges amid the "Latin American currency storm".

Uber's stock continued to decline on Wednesday, closing down 7.56% to $64.48, as the company's outlook for 2025 and the significant currency risk it faces in the fourth quarter disappointed Wall Street, leading to a sharp drop at the opening.

Scott Devitt, an analyst at Wedbush, said: "We believe the recent volatility in the stock of a company with strong fundamentals is unwarranted." He added that while Uber continues to achieve robust growth and margin expansion, market expectations have also risen.

During the earnings call, Uber CEO Dara Khosrowshahi acknowledged the currency risk, especially for its operations in the top 20 countries, including Argentina, Mexico, and Brazil.

However, Khosrowshahi noted that while currency fluctuations affect the company's revenue, profits are not affected because drivers and merchants are paid in local currency, creating a natural hedge.

He added: "So we run the company in a way that while foreign exchange volatility affects our revenue, as a management team, we will do our best to mitigate the impact of these fluctuations on profits, whether positive or negative. We will continue to drive the ongoing improvement in margins, just as we have done over the past few years."

Moreover, Khosrowshahi confirmed Uber's commitment to autonomous vehicles ("AV") and emphasized its role as a "critical market partner for AV participants."

Notably, the company recently announced a partnership with Waymo, a subsidiary of Google, to open its "interest list" in Austin, bringing it closer to a formal launch.

The partnership will be managed by Uber, while Waymo will continue to test and operate its self-driving cars. Once the platform is launched next month, passengers will be able to summon Waymo's self-driving taxis directly from the Uber app.

James Foord, an analyst at Seeking Alpha, said: "Whether or not the technology is developed first, Uber's strategic partnerships and scalable platform ensure it will play a key role in the future of autonomous ride-hailing services." He added that in the $5 trillion autonomous vehicle market, Uber could generate $1 trillion in revenue, making its current valuation very cheap.