Summary
- ARK Invest predicts Tesla’s Robotaxi Network will scale before competitors in autonomous ride-hailing
- Tesla may not be the first to offer expansive autonomous ride-hailing services but is expected to be the first to scale
- Tesla aims for a market of over $10 trillion globally surpassing popular ride-hailing platforms like Uber and Didi
- Elon Musk estimates Tesla’s robotaxi rides could cost as low as $0.30 to $0.40 per mile
- Tesla’s lower costs and means to scale make it competitive with human-driven ride-hailing platforms
Article
ARK Invest, a long-time Tesla bull, predicts that Tesla’s Robotaxi Network will scale before competitors offering autonomous ride-hailing platforms. While ARK does not expect Tesla to be the first to offer expansive fully autonomous ride-hailing services, they anticipate Tesla to be the first to scale, potentially capturing a significant market share in the autonomous ride-hailing industry. The investment firm believes that Tesla is targeting a larger market than popular ride-hailing platforms like Uber and Didi, estimating a global market of over $10 trillion.
According to Tasha Keeney, ARK’s Director of Investment Analysis & Institutional Strategies, Tesla’s advantage lies in its ability to offer relatively low-priced robotaxi rides. Elon Musk has projected that robotaxi rides could cost as low as $0.30 to $0.40 per mile with the Tesla Cybercab at scale. This is significantly lower compared to the average cost per ride-hailing mile in Western markets, which is around $2.40, and even lower than the cost for a personally owned vehicle at approximately $0.70 per mile.
Keeney further elaborates that Tesla’s Robotaxi Network’s lower costs will make it highly competitive with human-driven ride-hailing platforms. She argues that Tesla has the necessary means to scale an autonomous ride-hailing service. Firstly, Tesla has access to valuable data from its fleet of customer vehicles utilizing Full Self-Driving (FSD) and Enhanced Autopilot. Secondly, the company has the manufacturing capacity to build cars to expand its fleet. The recently unveiled Tesla Cybercab is expected to accelerate the growth of the Robotaxi Network once production begins.
Overall, ARK Invest expects Tesla to take the lead in scaling its Robotaxi Network, potentially outpacing competitors in the autonomous ride-hailing industry. Tesla’s focus on offering cost-effective rides through its autonomous vehicles could attract a significant share of the market, estimated to be worth over $10 trillion globally. With its data from FSD and Enhanced Autopilot, as well as its manufacturing capacity to increase its fleet, Tesla is well-positioned to establish a strong presence in the autonomous ride-hailing sector. The upcoming Tesla Cybercab is also expected to drive the growth of the Robotaxi Network, making Tesla a prominent player in this emerging market.
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