11:55 AM EDT, 07/31/2025 (MT Newswires) -- Uber Technologies ( UBER ) faces a growing competitive threat as Tesla (TSLA) has officially launched its Robotaxi service in the San Francisco Bay Area, marking a major step in the autonomous vehicle race, Wedbush Securities said in a note Thursday.

The launch of Tesla's Robotaxi is starting to alter perceptions regarding the timeline and feasibility of widespread fully autonomous driving, possibly challenging assumptions about Uber's ( UBER ) future role in the mobility market, the report said.

While the near-term financial impact on Uber ( UBER ) is likely limited, as much as 40% of its mobility gross bookings are concentrated in high density urban markets, areas where AVs are expected to gain traction fastest, the Wedbush analysts said.

Uber ( UBER ) has collaborated with Waymo in specific regions, but that advantage may lessen as self-driving fleets become increasingly autonomous, the report said.

Wedbush maintained a neutral rating on Uber ( UBER ) and reiterated its price target of $85.

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