Uber Technologies Inc. (UBER) saw its stock price plummet by 5.88% during Thursday's trading session, as investors reacted to potential threats in the ride-hailing market and broader market trends. The significant drop places Uber among the worst performers in the S&P 500 index for the day.
A key factor contributing to Uber's decline appears to be the news of Tesla's upcoming robotaxi launch. According to a Bloomberg report, Tesla (TSLA) is tentatively set to unveil its robotaxi on June 12. This development is seen as a long-term threat to Uber's business model, as noted by Wedbush analysts. The prospect of autonomous vehicles entering the ride-hailing market could potentially disrupt Uber's traditional driver-based service.
Additionally, the broader market context shows a mixed performance among tech stocks. While some companies like Nvidia (NVDA) saw gains, others in the tech sector faced pressure. This suggests a shift in investor sentiment that may be affecting high-growth tech companies like Uber. As the market continues to evaluate the potential impact of AI and autonomous technologies on various industries, companies in the transportation and ride-sharing sectors may face increased scrutiny and volatility.
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