03:45 PM EDT, 10/24/2024 (MT Newswires) -- Tesla's (TSLA) plan to begin offering paid autonomous rides in Texas and California by 2025, pending regulatory approval, could pose a near-term risk to the broader ride-hailing industry, RBC Capital Markets said in a Thursday note.

"This could create a new overhang for Uber Technologies ( UBER ) and Lyft ( LYFT ) if Tesla shows signs of product market fit in Texas or California," RBC said.

Tesla plans to leverage existing vehicles with updated software for the rollout next year despite facing potential regulatory hurdles in California, according to the note.

The company's main challenge would be determining the pricing strategy and the number of cars it can deploy to establish a reliable service, RBC said.

"We think Tesla could launch as little as a few hundred cars with a large or even total subsidy for drivers and riders as it looks to build supply and demand for its marketplace," RBC said. "It could certainly pose nearer-term disruption risk to broader ride-hail pricing," it added.

Tesla shares jumped more than 22% in recent trading.

Price: 261.61, Change: +47.96, Percent Change: +22.45