December 16, 2024 - Cathie Wood, CEO of ARK Invest, has indicated that Tesla Inc.'s entry into the robotaxi market could drastically reshape the ride-hailing sector. Her comments follow data revealing that Waymo, a subsidiary of Alphabet Inc., has matched Lyft Inc.'s market share in San Francisco, capturing 22% of rides within its operational area, while Uber Technologies Inc. holds a dominant 55%.
Wood stated on social media that the anticipated launch of Tesla's driverless ride-hailing service next year could accelerate the market transition from a gradual to a rapid evolution.
ARK Investment Management estimates that Tesla's robotaxi service could unlock $11 trillion in revenue potential, with projected consumer costs of $0.25 per mile, significantly lower than the current average of $2 per mile.
Elon Musk, CEO of Tesla, has announced plans to initiate ride-hailing services in Texas and California next year, pending regulatory approval. While initial operations may necessitate human drivers, Musk anticipates fully autonomous rides by 2025.
Tesla's purpose-built robotaxi, the Cybercab, is slated for production before 2027, with Model 3 and Model Y vehicles to be utilized in the interim. However, some analysts, like Gary Black of The Future Fund LLC, are cautious and have excluded robotaxi revenue from their valuations until market dynamics clarify.