Analysts rework Uber stock price target on autonomous vehicle expansion

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Analysts rework Uber stock price target on autonomous vehicle expansion originally appeared on TheStreet.
Looks like Uber () is going to pony up.
The ride-sharing and delivery platform is reportedly in discussions with its co-founder Travis Kalanick, who was pushed out of the company eight years ago, to help finance his bid to acquire the U.S. operations of Pony.ai () , according to the New York Times.
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Pony.ai, primarily based in China, holds permits to operate robotaxis and self-driving trucks in both the U.S. and China and. Kalanick would run Pony if the deal were completed, the Times said, citing anonymous sources.
An Uber spokesman declined to comment on deal talks and told the Times that, 'Uber has a platform strategy, and we intend to work with multiple players in the U.S. and around the world who can safely bring autonomous technology to the world.
Uber CEO Dara Khosrowshahi has maintained that while autonomous vehicles are growing steadily, ride-hailing networks will have both human and robot drivers for years.
Meanwhile, Uber launched autonomous vehicle service in Atlanta on June 24 through its partnership with Waymo, Alphabet's () autonomous vehicle subsidiary.
"At Uber, we're reimagining how the world moves and building a future where autonomous vehicles and drivers work side-by-side to help make transportation more affordable, sustainable, and reliable for all," the company said in a statement.
In Austin, where Waymo rides are also exclusively available on Uber, there are now 100 Waymo vehicles on the platform, Uber said, 'and that number is growing as the fleet scales across both Austin and Atlanta.'
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"This is a major milestone and makes UBER a very strong competitor against Tesla in the robotaxi business," TheStreet Pro's James "Rev Shark" DePorre said in a recent column.
The news comes after Tesla () recently launched its long-awaited Robotaxi service in Austin to generally mixed reviews.
The service is live only in a small, geofenced slice of Austin during set hours, a long way off from the 24/7, coast-to-coast network CEO Elon Musk has long hyped. Each Model Y had a Tesla safety driver onboard.
Canaccord analyst George Gianarikas downgraded Uber to hold from buy with a price target of $84, down from $90, after assuming coverage of the name, according to The Fly.
The company's "future could be bright," providing value add in the autonomous vehicle world through hybrid human-robot networks, strong on the ground operations, and other tactical elements, the analyst said in a research note.
However, an alternative scenario is also plausible, where a world dominated by a few autonomous vehicle "behemoths" control the value chain and leave Uber and Lyft () "reflecting on the golden days of the past," Gianarikas contended.
The analyst said he believes the outcome "is truly unclear." He does expect continued growth "for now," saying both companies have strong service platforms and continue to grow ride-share.
Gianarikas said his near-term concern is multiple compression. He said that it sees uncertainty and potential for "rapid disruption" as the autonomous vehicle market crystallizes.
Canaccord also downgraded Lyft to hold from buy with a price target of $14, down from $22.
On June 24, Cantor Fitzgerald raised the firm's price target on Uber to $106 from $96 and kept an overweight rating on the shares.
The firm said that while autonomous vehicle developments from Tesla, Waymo, and other third-party partners are the important near-term drivers of Uber's share price performance, the company's ability to sustain rides and bookings growth in the core mobility business will be a primary focus on the fundamentals side.
Cantor said that it believes Uber "has plenty of irons in the fire" to help sustain mobility rides growth.
The firm said that Tesla's Robotaxi rollout in limited scope this past weekend makes Cantor increasingly confident that it is likely to take several years before autonomous vehicle volumes weigh noticeably on the rideshare industry.
Uber shares are up nearly 50% this year and the stock has climbed 28% from a year ago.
The human-robot connection took a bad turn in Los Angeles recently when several Waymo autonomous taxis were torched during protests against ICE raids in the city.In addition, one group of protestors, Safe Street Rebels, has been fighting against autonomous driving for years, citing a lack of accountability, the fact that their fleets "cannot be cited for traffic violations,' increased traffic, the effect on human taxi drivers, and surveillance, and other issues.
A survey by the American Automobile Association earlier this year found that 13% of U.S. drivers would trust riding in self-driving vehicles, up 9% a year ago. Despite this slight increase, 6 in 10 U.S. drivers still report being afraid to ride in a self-driving vehicle.
AAA's survey found that 74% of drivers were aware of robotaxis, yet 53% said they would not choose to ride in one.Analysts rework Uber stock price target on autonomous vehicle expansion first appeared on TheStreet on Jun 29, 2025
This story was originally reported by TheStreet on Jun 29, 2025, where it first appeared.