Uber Technologies Set to Benefit from Autonomous Driving Expansion, Analysts Predict

Wall Street is betting big on Uber stock's expansion in autonomous driving, with analysts seeing potential upside in partnerships with Alphabet and Tesla. Despite the rapid growth of autonomous driving, investors are not betting on the companies at the helm, but rather those that will benefit from its introduction. Uber's established platform and potential partnerships make it a prime candidate for growth in this space. Analysts are bullish on Uber stock, with a price target of $96.12.

Wall Street is betting big on Uber Technologies' (UBER) expansion in autonomous driving, with analysts seeing potential upside in partnerships with Alphabet (GOOG) and Tesla (TSLA). Despite the rapid growth of autonomous driving, investors are not betting on the companies at the helm but rather those that will benefit from its introduction. Uber's established platform and potential partnerships make it a prime candidate for growth in this space.

Uber's stock price has surged around 60% from the start of this year, reaching new highs. This growth is driven by several factors, including its partnership model and recent developments in the autonomous vehicle (AV) sector. The company is focusing on partnerships with AV leaders, such as Alphabet's Waymo, which has expanded its operations into new markets like Philadelphia [1].

Analysts are bullish on Uber stock, with a price target of $115, up from $97. Bank of America (BAC) analyst Justin Post, who maintained a Buy rating on Uber, attributes this optimism to the company's AV partnerships, strong booking growth, and the potential benefits of President Trump's "One Big Beautiful Bill" legislation package [2]. The "no tax on tips" provision in the bill could increase driver pay by up to 2.5%, making the platform more attractive to drivers and potentially improving service quality.

Moreover, Uber is likely to benefit from a deal made by one of its partners. Nigerian startup Moove, which is backed by Uber and is one of its most critical fleet management partners, is set to raise $1.2 billion to finance the deployment of an AV fleet in partnership with Waymo [1]. While the initial rollout focuses on Phoenix and Miami, the scope could widen, reinforcing the view that multiple AV suppliers will coexist long-term.

Despite the positive outlook, Uber faces challenges. The company is currently facing a lawsuit from the US Federal Trade Commission (FTC) alleging deceptive billing practices. However, the potential tax break for drivers could mitigate some of these challenges by making the platform more attractive to drivers.

In conclusion, Wall Street is optimistic about Uber's autonomous driving expansion, driven by its partnerships, strong booking growth, and potential tax benefits for drivers. The company's established platform and focus on partnerships make it a prime candidate for growth in this space.

References:
[1] https://finance.yahoo.com/news/uber-stock-is-up-more-than-60-ytd-as-it-leans-into-av-partnerships-165227731.html
[2] https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/07/46305688/why-uber-could-keep-climbing-tax-breaks-av-partnerships-strong-bookings-fuel-analyst-optimism