Analyst calls robotaxi fears completely ridiculous

Costco and Uber Eats have expanded their U.S. partnership to 47 states, covering 600 locations. This follows Costco's 20.9% rise in digital sales last fiscal year. The deal offers cross-membership benefits, including discounts on Uber One and Costco memberships. Costco reports earnings on Sept. 24.

Uber's stock fell 4% on September 8 due to Tesla's Cybercab debut, despite Uber's strong Q2 results. Uber reported $14.19B revenue, $2.39B net income, and $2.79B free cash flow. Tesla's Cybercab faced regulatory scrutiny and operational issues, with NHTSA opening an audit. Uber plans to expand autonomous vehicles in 15 cities by 2026, partnering with multiple AV companies.

Uber Technologies (UBER) obtained Spain's first national permit for Level 4 autonomous passenger vehicles, advancing its long-term automation goals. The share price has declined 5.4% in the past week and 4.9% in the past month, but it has gained 4.1% over 90 days and 50.82% over three years. Analysts suggest a fair value of $116 per share, indicating potential undervaluation despite recent weakness. Risks include increased competition and higher automation spending.

Lucid Group (LCID) shares rose 8% after announcing a partnership with Uber and Nuro to launch robotaxis in Houston by 2027. The fleet will use Lucid's electric SUVs and Nuro's autonomous tech, operated via Uber's app. Uber's stock remained flat. The companies aim to deploy 35,000 autonomous vehicles globally.

Uber (NYSE:UBER) will cut 10% of its workforce, about 3,300 employees, to fund a $10 billion investment in autonomous vehicles. CEO Dara Khosrowshahi aims to simplify the company and redirect savings toward growth initiatives. Uber's shares rose modestly on the news but are down 8-12% year-to-date. The company reported strong gross bookings and free cash flow in Q2, but faces competition from Alphabet's Waymo in the autonomous vehicle market.

Uber, WeRide, and AVOMO secured Spain's first national permit for Level 4 autonomous vehicles. The approval allows them to operate in Madrid and expand to 11 more cities by 2030. Uber's shares have gained in the past three months, trading at a 12-month forward P/S of 2.31X. Commercial operations in Spain are expected by late 2026, subject to regulatory requirements.