A New Competitor for Uber and Lyft?

Lyft [NASDAQ: LYFT] shares are down almost 11% today. Shares for the ridesharing company are trading 23% lower since it went public late last month.

But shares dropped today on the account that Uber is also looking at going public soon, and it is expected to be massive…

Uber and Lyft are two of the largest ridesharing companies in the world. But, what if there was another company looking at joining into their game?

An unlikely competitor with a fleet of cars already on the road?

We are talking about Tesla [NASDAQ: TSLA].

Yep, Tesla could become an all-in-one car maker, battery producer, and ridesharing company.

Where are we getting this?

Well, earlier this month, @LivingTesla tweeted he was covering the camera on his Tesla’s rear view mirror and asked what’s the purpose of it. You can see the tweet below, with the camera circled in red.


Source: Tweeter/Markets and Money

Here was Tesla’s CEO Elon Musk’s reply:


Source: Twitter

But to be honest, this isn’t where we are getting the idea from. Musk’s response didn’t surprise us too much. Why?

Well, because this is not the first time we’re hearing this idea, that is, that Tesla could be looking at competing against Uber and Lyft. One of our colleagues from the US, Jeff Brown, made the call last year. Jeff helms the US’s Near Future Report.

Here is something you probably don’t know about me. Every week I spend hours reading through everything that’s published in our international network, and I absolutely love doing it.

I package the week’s best ideas in a publication called Global Investor. These range from progressive ideas like Jeff’s, to different ways of seeing the world and protecting your wealth.

Your Tesla could be making you money while you are busy

Here is what we wrote about Tesla in Global Investor back in November last year to our subscribers:

You know, we’ve slammed Tesla a lot this year.

‘While we like their product and what they are looking to achieve, the fact is Tesla are burning cash at a fast pace.

‘But as Jeff Brown recently told us, Tesla is ‘grossly misunderstood by the market’. There may be a different side to Tesla…one that not many are seeing. […] [W]hile Tesla has proven itself as a car maker, that’s not where he sees the value in the company.

‘In fact, Jeff believes that Elon Musk’s antics and his Mars dreams are all intentional. A way to distract the market from Tesla’s “real” game.

‘Because if the competition catches on of what is really happening, it might shorten Tesla’s lead.[…]

‘Jeff is excited about Tesla’s long game. A game that involves a small company called Tesloop.

‘Tesloop offers a Tesla ride sharing service or the option to rent a Tesla and drive it yourself. As Jeff continued:

“It started small, with daily shuttle services between Los Angeles and Las Vegas. Over time, routes expanded to other locations in Southern California. In all, more than 2.5 million miles were traveled.

“And here’s the thing…more than 90% of those miles were driven by an artificial intelligence (AI).

“That’s right, the cars drove themselves. The driver for the shuttle routes only touched the steering wheel less than 10% of the time.

“And this wasn’t a controlled experiment. This was a real commercial service run by […]Tesloop, with real paying customers who rode those millions of miles.

“Tesloop EVs drove about 17,000 miles per car per month. The company generated $17,000 of revenue per car per month…A dollar a mile.

“Weeks ago, it announced a new initiative called Carmiq — an online service designed for connected electronic vehicle owners. With the simple press of a button on a smartphone application, owners can order car cleaning, tire maintenance, or vehicle insurance.

“The top two services listed are ‘FleetShare: Rent a Tesla’ and ‘FleetShare: Share Your Tesla’.

“This is the future…shared autonomous vehicles (SAVs). Just like ridesharing companies Uber and Lyft today, there will be networks of SAVs that will be available on demand. Only instead of the car operating as a taxi, users will rent the car to drive themselves…or just ride along while the AI takes the wheel…

“And those who own a Tesla will be able to opt in to the SAV network. They will be able to let their Tesla work for them when they are not in use.

“After all, on average, cars are only used about 5% of the day, the other 95% of the time they are parked…

“Imagine that…your car becomes an asset, literally generating income for you every day.

“I envision that Tesla will establish its own SAV network and get a cut of the business, just as Uber and Lyft do for providing the network for ridesharing services.”

In other words, Tesla owners may be able to include their Tesla into a shared autonomous vehicles network (SAV). Your Tesla could be making you money while you are busy doing other things.

And yep, if and when this happens, they will be competing with Uber and Lyft.

Best,

Selva Freigedo,
Editor, Markets & Money


Selva Freigedo is an analyst with a background in financial economics. Born and raised in Argentina, she has also lived in Brazil, the US and Spain. She has seen economic troubles firsthand, from economic booms to collapses and the effects of hyperinflation, high unemployment, deposit freezes and debt default. Selva now writes from her vantage point here in Australia. She is an editor for Markets & Money and every week goes through each report and research note produced by our global network of trusted advisors to find, in her opinion, the best investment opportunities for you in Australia and overseas. She packages these opportunities for you in Global Investor.


Leave a Reply

Your email address will not be published. Required fields are marked *

Markets & Money