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[Editor’s Note: This story was updated on July 30 to delete data about the regulator that might be involved].
Usually, when investors play the racing game, it’s Uber (NYSE: UBER) instead of Lyft (NASDAQ: LYFT). If you’re a big fan of the business model, you’re in Lyft’s inventory or Uber Stock, but not both. At least that’s my experience.
However, as a former defender of Elon Musk and all of Tesla’s paints in the automotive industry, the opportunity for him to generate even greater sales through the launch of a fleet of autonomous taxis and a Lyft-type fleet with human drivers is exciting.
Again, if you own Lyft or Uber shares.
Ark Investment Management analyst Tasha Keeney recently argued that Tesla deserves to launch Tesla’s network today by human drivers, before getting approval from the Full Autonomous Driving (FSD) app and autonomous robotaxis.
«… This telecare network [driver in driver], you know, provides a threat of problematic coverage in this case [bear]. Therefore, [Tesla] transforms your business into a software-as-a-service style at all times. And we think this can be a wonderful opportunity and Tesla deserves to really start now,” Keeney said on July 13.
Meanwhile, BloombergNEF estimates that by 2040, there will be 28 million robotaxis active worldwide. Ark predicts that the opportunity to share the ride independently is $1 trillion today, $5 trillion in five years and $9 trillion through 2029, a figure that is higher than that of the energy and auto sectors today.
However, as Keeney broadcasts, Tesla has great credit for Lyft and Uber because its prices drop a lot due to electrification, vertical integration and has an internal insurance program.
In addition, as other people are looking for additional revenue lately, the Tesla network would be a perfect addition to their existing money stream.
I guess what might be that I start driving a Tesla for the Tesla network. Once fully autonomous driving is legal by law, you avoid driving and continue to generate profits with your Tesla.
It’s a gain that neither Lyft nor Uber can offer.
The last time I wrote about Lyft’s actions in April. At the time, I said that their stocks, along with Uber, made smart bets only for competitive investors. The main explanation for why I liked Lyft was the fact that I had no debts and a lot of cash to get over the pandemic.
What I didn’t do took a look at Tesla in the equation.
“In the future, car sharing can lead to much higher participation rates, up to 60%, as autonomous taxi networks move towards monopolies that offer safer and more convenient routes. We believe that the first players in the area of autonomous driving deserve to be able to gather more knowledge at a faster pace than their budding competitors, creating geographic monopolies with higher costs than it would otherwise,” Keeney wrote in February.
After reading Ark Investment’s arguments for the Tesla Network, it now makes less sense, in my opinion, to invest in Lyft when you can make a bet on ride-hailing by betting on Tesla.
Nothing non-public contrary to the other Lyft people, however, if anyone needs to find a way to make money through sharing the trip, it will be Elon Musk.
If you believe that statistics on autonomous taxi fleets charge 25 cents according to the mile, about one-third of your own vehicle’s operating load, Tesla will have the inner lane opposite Lyft and Uber in relation to this segment of the racing economy.
Will Ashworth has been writing about full-time investments since 2008. The publications in which he has given the impression come with InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger and many others in the United States and Canada. He likes to create style wallets that support the passage of time. He lives in Halifax, Nova Scotia. At the time of writing, Will Ashworth did not have a position in any of the above values.
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