Volatility Ahead: Two Stocks to Watch During Tesla's Robotaxi Event

As Tesla (TSLA) prepares to unveil its highly anticipated robotaxi on October 10, investors are eagerly awaiting the event, which could significantly impact the performance of two related stocks: Uber Technologies (UBER) and Waymo (GOOGL). This article explores the potential catalysts for volatility in these two stocks leading up to and during the robotaxi event, and how analyst expectations for Tesla's robotaxi may influence the perceived risk and reward for investing in these two stocks.


Uber and Waymo are both heavily invested in the autonomous vehicle sector, making them natural candidates for potential volatility during Tesla's robotaxi event. Uber's partnership with Waymo, announced on September 13, signals a further endorsement of Uber's value in the early autonomous industry. Meanwhile, Tesla's robotaxi reveal could potentially disrupt the market, impacting the perceived value of both Uber and Waymo.

Analyst expectations for Tesla's robotaxi are high, with many anticipating a significant moment for the company. Morgan Stanley's Adam Jonas expects a demonstration of the latest iteration of full self-driving (FSD) technology and a fully-autonomous robotaxi driving on a closed course. If Tesla's robotaxi lives up to expectations, it could drive demand for autonomous vehicle technology and potentially impact the valuations of Uber and Waymo.


However, the market capitalizations and liquidity of these two stocks differ significantly from Tesla's. As of September 2024, Tesla's market capitalization was around $1.2 trillion, while Uber's and Waymo's were approximately $100 billion and $30 billion, respectively. This disparity in size and liquidity could lead to varying degrees of volatility during the robotaxi event.

Regulatory changes and technological advancements in the autonomous vehicle sector could also impact the volatility of Uber and Waymo. As the industry evolves, companies that can adapt and innovate may see increased value, while those that fall behind could face decreased investor confidence.


Furthermore, the relationships between these companies and Tesla could influence their volatility during the event. As competitors in the autonomous vehicle space, Uber and Waymo may face increased pressure to innovate and differentiate themselves from Tesla. Conversely, if they collaborate with Tesla or other industry players, they could benefit from shared resources and knowledge.

In conclusion, the upcoming Tesla robotaxi event is poised to drive volatility in the stocks of Uber and Waymo, two companies heavily invested in the autonomous vehicle sector. Analyst expectations for Tesla's robotaxi, market capitalizations, regulatory changes, technological advancements, and relationships with Tesla will all play a role in shaping the volatility of these two stocks during the event. Investors should closely monitor these factors as they make strategic decisions about their portfolios.