This Is Why Uber Stock Is Surging Today

Shares of ride-hailing company Uber (UBER) are surging today after Alphabet-backed Waymo (GOOGL) announced that it will bring fully autonomous rides to Atlanta. Now, people in a 65-square-mile area of Atlanta can be matched with a self-driving, all-electric Jaguar I-PACE through the Uber app. It’s worth noting that these rides come at no extra cost, and users can opt out if they prefer a regular car. This expansion is part of Uber’s plan to build a future where driverless vehicles and human drivers work together to make transportation more affordable and reliable.

It also positions Uber to stay ahead of rivals like Tesla (TSLA), Baidu (BIDU), and WeRide, which are all pushing into robotaxis. Waymo already has 100 vehicles operating in Austin with more on the way, and rider feedback has been positive, with an average rating of 4.9 stars. Uber says safety is a top priority, and Waymo’s vehicles have already proven to reduce traffic injuries in cities where they operate. While Uber and Waymo are making smooth progress, Tesla’s robotaxi launch in Austin has been rocky.

In fact, the company’s driverless Model Y vehicles were seen in videos driving the wrong way, speeding, and braking hard near parked police cars. These issues caught the attention of the U.S. National Highway Traffic Safety Administration, which is now investigating the service. The company is also under a broader federal investigation that covers 2.4 million vehicles with its Full Self-Driving software after several crashes, including one fatal accident.

Is UBER a Buy or Sell Right Now?

Turning to Wall Street, analysts have a Strong Buy consensus rating on UBER stock based on 30 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average UBER price target of $99 per share implies 7.9% upside potential.

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