Uber (UBER) shares ticked higher on Friday after Tesla’s (TSLA) robotaxi event left investors largely disappointed. GLOBALT Investments senior portfolio manager Thomas Martin joins Market Domination Overtime to discuss the competition between the two and why Uber benefitted from the event.
“Both Tesla stock and Uber reacted the way you would have expected given the robo-day from Tesla. It was a classic example of long-term versus short-term. And they were the opposite for Uber and for Tesla,” Martin says of the movement.
He tells Yahoo Finance that “if Tesla was able to solve automated vehicles and robo in the near term or you saw a roadmap for even the intermediate term, then that was a problem potentially for Uber longer term. But the devil is in the details.”
As investors were left looking for more insight and further information about the robotaxi rollout, Uber became more attractive to investors. If Tesla cannot meet expected timelines for the release of its robotaxis, Uber will, therefore, have more time to get ahead of the game.
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This post was written by Melanie Riehl