A development that has certainly shocked the market is the positive performance of Uber (UBER), which has surged throughout today. The ride courier service has reached an all-time high of $85.56 while increasing more than 9.8% in the last 24 hours. Interestingly, it may have Tesla (TSLA) to thank for the performance.
The Elon Musk-led electric vehicle (EV) manufacturer had its highly anticipated Robotaxi event this week. However, the unveiling left investors rather disappointed. In response, the market showed increased confidence in the leading ride-sharing application, as clearly seen in its soaring stock value.
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Uber Skyrockets to $85.60 High: Why They Have Tesla to Thank
All eyes this week were on Tesla, which was set to unveil its self-driving taxi vehicle at the highly anticipated October event. The announcement was poised to be vital for the company. Elon Musk had previously said it would be one of its most important unveilings ever.
Yet, the market has seemingly not felt the same way. Indeed, Uber (UBER) surged in value following the Tesla announcement, as investors saw increased confidence in the digital courier service. Specifically, traders clearly see Tesla’s underwhelming launch as a key opportunity for the company.
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“We consider the event a best-case outcome for Uber,” Wall Street analyst John Colantuoni said. The 9% increase Friday is Uber’s biggest stock move since it surged 66.5% in September, That increase took place after the company announced a partnership with Waymo. The collaboration would see autonomous ride-hailing services debut in Austin, Texas, and Atlanta, Georgia.
Still, Uber has shown a volatile predisposition. The stock has moved more than 5% on 12 separate occasions within the last year, However, since the start of 2024, it is up more than 45.8% as it firmly sits above the $85 mark. Altogether, the recent stock movement shows investors are far more confident in Uber’s plan and strategy than they are in Musk’s.