Uber Technologies Inc (NYSE:UBER) shares are trading lower by 5.9% to $68.92 Monday afternoon. Weakness may be due to competition concerns on reports indicating President-elect Donald Trump plans to ease restrictions for self-driving vehicles.
What To Know: The proposed federal framework for self-driving vehicles, as reported by Bloomberg, could accelerate mass adoption of autonomous technology. Tesla Inc (NASDAQ:TSLA), with its plans to produce the Cybercab robotaxi by 2026, stands to benefit significantly from relaxed regulations.
Meanwhile, Uber, which has been heavily involved in autonomous driving through partnerships and divestitures, may face heightened competition in a market where Tesla's vertically integrated model could undercut traditional ride-hailing services.
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Adding to the unease is the speculation that former Uber executive Emil Michael may be considered for Transportation Secretary. While his ties to Uber might seem advantageous, his potential appointment could align regulatory priorities more with Tesla and other autonomous manufacturers, further complicating Uber's strategic position.
Uber has long been reliant on its vast driver network for growth, but a rapid shift toward driverless vehicles could disrupt this dynamic. Investors appear to be factoring in the risks of Uber losing ground to competitors like Tesla, which can leverage economies of scale and cutting-edge technology in a deregulated market.
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How To Buy UBER Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Uber Technologies' case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from Benzinga Pro, UBER has a 52-week high of $87.00 and a 52-week low of $53.76.
