Investing.com – As Tesla (NASDAQ:) prepares for an upcoming robotics event, analysts at RBC Capital expect volatility in the share prices of ride-sharing giants Uber (NYSE:) and Tesla Inc (NYSE:). Lyft (Nasdaq:).
The event, which is set to showcase Tesla’s developments in autonomous vehicle (AV) technology, could lead to market disruption for these companies, depending on details provided by CEO Elon Musk regarding regulatory approvals, launch timelines, pricing strategies, and… Liability, according to RBC.
The bank’s analysts believe that while Uber and Lyft investors are already aware of the competitive risks posed by Tesla, the details shared during the event could spark market reactions.
“We see the potential for disruption of a magnitude dependent on the depth and detail Tesla CEO provides on regulatory approval, launch timing, pricing, supply and demand acquisition strategies, and liability exposure,” the bank wrote.
They explain that potential turmoil could arise if Tesla hints at subsidizing prices or changing the economics of driver-owners to gain market share.
RBC believes that such moves could significantly reshape the competitive landscape. The RBC memo highlights that many players in the autonomous vehicle ecosystem – OEMs, vehicle owners, and technology providers – will benefit from expanding the Total Addressable Market (TAM).
“We believe many parties can win through autonomous vehicles that expand the TAM and mileage capture rate of vehicles, with Uber and Lyft benefiting,” they explained.
As the event approaches, the market is likely to react to any announcements about Tesla’s testing phases of its autonomous vehicle ride-hailing service, which could begin within the next year.
Analysts stress the need for investors to prepare for potential impacts while remaining open to opportunistic buying in response to any stock weaknesses that may arise from this event.