Uber CEO Sees Tesla as Partner or Rival in Trillion-Dollar AV Market

The race for autonomous ride-hailing supremacy is heating up, but Uber’s top executive believes there’s more than enough room at the finish line for multiple winners, including Tesla. In a recent interview on CNBC, Uber CEO Dara Khosrowshahi offered a pragmatic view of the emerging robotaxi market, suggesting fierce competition won’t necessarily lead to a single dominant player.

“We could be competitors, we could be partners,” Khosrowshahi stated regarding Tesla’s ambitions. “When you’re talking about trillion-dollar TAMs (Total Addressable Markets), there will be no winner take all in this marketplace. It’s great to see Tesla in the market. They’re taking their time and making sure they are…” (CNBC, August 2025). His comments signal a shift from Uber’s past direct involvement in self-driving tech, following the 2020 sale of its autonomous unit, Advanced Technologies Group (ATG), to Aurora.

Can Tesla and Uber Coexist in the Robotaxi Era?

Khosrowshahi’s perspective hinges on the sheer scale of the potential market. While the US rideshare market is currently valued at around $58 billion, projections from industry analysts, including those cited by Goldman Sachs’ Mark Delaney, suggest it could explode to $336 billion by 2030. Within that, robotaxis are expected to capture an initial $7 billion (or roughly 8% of total bookings) by the end of the decade. However, the long-term vision points towards a truly massive, trillion-dollar global opportunity as autonomy matures and adoption grows.

Uber is positioning itself as the essential network platform, regardless of who builds the autonomous vehicles. Instead of developing its own costly self-driving technology, the company has forged strategic partnerships:

• Motional: A joint venture between Aptiv and Hyundai, deploying all-electric IONIQ 5 robotaxis on Uber’s network.
• Nuro & Lucid: Partnering to integrate Nuro’s autonomy software onto Lucid Group’s electric vehicles for future Uber robotaxi services.
  This “asset-light” strategy allows Uber to leverage its vast user base and dispatch infrastructure while others bear the significant R&D costs of autonomy.

Tesla, conversely, is pursuing a vertically integrated approach. It is developing its Full Self-Driving (FSD) software, building bespoke robotaxi vehicles, and launching its own ride-hailing services. The company recently initiated a limited robotaxi service in Austin, Texas, with safety drivers present, and has started a manned ride-sharing pilot in the Bay Area while awaiting specific robotaxi permits.

Navigating a Complex Future

The path to ubiquitous robotaxis remains complex, involving technological hurdles, regulatory approvals, and significant infrastructure investment. While NVIDIA’s dominance in the AI chip market shows consolidation can happen in tech sectors, Khosrowshahi argues the transportation sector’s vastness and regional variations inherently support multiple successful players. Whether Tesla and Uber ultimately become competitors, partners, or a hybrid of both, the Uber CEO’s message is clear: the robotaxi market represents a generational opportunity far too large for any single company to monopolize. The trillion-dollar autonomous future is coming, and Uber is betting its network will be the highway connecting passengers to it, regardless of whose vehicles arrive at the curb.

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Must Know

Q: Did Uber sell its self-driving car division?
A: Yes. In 2020, Uber sold its self-driving unit, Advanced Technologies Group (ATG), to Aurora Innovation. In exchange, Uber received a stake in Aurora, which focuses primarily on autonomous trucking technology.

Q: How is Uber involved in robotaxis now?
A: Uber is pursuing a partnership model. Instead of building its own self-driving cars, it partners with companies developing autonomous vehicle technology (like Motional and Nuro) and electric vehicle manufacturers (like Hyundai and Lucid Group). These partners operate their robotaxis on Uber’s existing ride-hailing network platform.

Q: What is Tesla doing in the robotaxi space?
A: Tesla is developing its Full Self-Driving (FSD) software and designing a dedicated “robotaxi” vehicle. It has launched initial manned ride-sharing pilots and limited robotaxi testing with safety drivers in specific geofenced areas like Austin, Texas. Tesla aims to create its own integrated robotaxi service.

Q: How big is the potential robotaxi market?
A: While the current US rideshare market is valued around $58 billion, it’s projected to reach $336 billion by 2030. Robotaxis are expected to capture an initial $7 billion (about 8%) of that by 2030. Long-term projections suggest the global autonomous mobility market could eventually be worth trillions of dollars.

Q: What does “winner takes all” mean in this context?
A: “Winner takes all” refers to a scenario where a single company (like Tesla or a specific robotaxi developer) achieves such overwhelming dominance in technology and market share that it effectively pushes out competitors. Uber’s CEO argues the market is too vast and complex for this outcome.