Uber CEO Explains Tesla’s Role: Competitor or Partner in the Trillion Dollar Market Opportunity

This information should not be considered as investment advice. The author does not hold any positions in the stocks referenced.

Collaboration vs. Competition: Insights from Uber’s CEO

In a recent discourse, Dara Khosrowshahi, the CEO of Uber, suggested that both Uber and Tesla can thrive in the evolving landscape of autonomous driving technology. He expressed skepticism towards the notion of a “winner takes all”scenario, emphasizing the vast potential of this burgeoning market.

Uber’s Strategic Shift in Autonomous Driving

To provide some context, in 2020, Uber divested its self-driving division to Aurora, obtaining equity in the startup that focuses on autonomous trucking. This strategic move allowed Uber to realign its resources while still participating in the self-driving space.

In 2021, Uber established a significant partnership with Motional, a joint venture created by Aptiv and Hyundai. This collaboration aims to enhance autonomous mobility solutions, with Motional’s electric IONIQ 5 robotaxis now seamlessly integrated into the Uber ride-hailing platform.

Recent Developments in Uber’s Autonomous Initiatives

More recently, Uber entered into partnerships with Nuro and Lucid Group. This agreement involves deploying Nuro’s autonomous technology on electric vehicles provided by Lucid, with a resulting robotaxi service set to operate on the Uber network.

Tesla’s Bold Moves in the Robotaxi Market

On the other hand, Tesla has made notable strides by launching a specialized robotaxi service in a geofenced area of Austin, Texas. This initiative includes an employee present in the front passenger seat, along with a dedicated team of teleoperators ready to intervene if necessary. Additionally, Tesla has rolled out a manned ride-sharing service in the Bay Area, activating while awaiting specific permits for its robotaxi service.

Uber CEO today on @Tesla:”They could be a competitor, they could be a partner. When you’re talking about trillion dollar TAMS, there will be no winner take all in this market place. It’s great to see Tesla in the market. They’re taking their time and making sure they are… pic.twitter.com/PPvvdaZrHf

— Sawyer Merritt (@SawyerMerritt) August 6, 2025

Potential for Growth in the Rideshare Market

Addressing the core of his discussion on CNBC, Khosrowshahi remarked that the relationship between Uber and Tesla could evolve into either competition or partnership in the rapidly growing robotaxi sector. He highlighted the unlikely emergence of a single dominant player amidst this expanding market, which is projected to soar from approximately $58 billion currently to an impressive $336 billion by 2030.

Goldman Sachs analyst Mark Delaney estimates that robotaxis may secure about $7 billion—or 8 percent—of the total ride-hailing bookings by 2030. As the industry matures, the total addressable market may eventually reach trillions, reaffirming the significant growth potential in this innovative sector.

Source&Images