Bears Hate This Cheap Stock -- That's Exactly Why I Might Buy
2026-09-29 13:16
•Ryan Vanzo •The Motley Fool
•• •• Axe Cap view
Bears Hate This Cheap Stock -- That's Exactly Why I Might Buy
Uber trades at a steep discount to Tesla despite strong positioning in the robotaxi race.
Robotaxis are still some years from large-scale rollout, but the market’s pricing seems myopic. Uber trades around 3x sales, a fraction of Tesla’s 13x, yet Uber commands a powerful advantage: an existing global network of 50+ million Uber One subscribers and a platform agnostic to carmakers. This means Uber can focus purely on demand and operations without the heavy manufacturing cost Tesla bears. For South African investors, this is interesting given our reliance on the USD/ZAR rate to gauge tech exposures. If Uber succeeds, the rand could strengthen as foreign inflows seek these cheaper, high-growth names. Strong free cash flow margins also suggest Uber can sustain investment in robotaxi tech without burning through cash. The risk? Tesla's integrated hardware-software edge might tip the scales, or regulatory hurdles could slow robotaxi adoption more than expected. Still, Uber’s discount looks like a value trap worth watching. this is just our opinion and not financial advice
Buy Uber selectively through USD/ZAR exposure, as South African listed tech proxies lack direct robotaxi plays. Trim Tesla on valuation grounds unless confidence in hardware integration grows.
- UBER
- TSLA
- USD/ZAR
- Tesla’s hardware-software integration outperforms expectations
- Regulatory delays slow robotaxi deployment globally
6/10
As robotaxi technology gains momentum with expectations for large-scale deployment by 2030, Uber Technologies trades at a significant discount (3x sales) compared to Tesla (13x sales). The article argues Uber is well-positioned to dominate the robotaxi market due to its established platform, 50+ million Uber One subscribers, and manufacturer-agnostic approach, making it an attractive investment despite market concerns about robotaxi disruption to its core business.
Our take is based on reporting first published by The Motley Fool.