Tesla stock sank, Uber rose after robotaxi event. Here's why.

Uber (UBER) shares ticked higher on Friday after Tesla's (TSLA) robotaxi event left investors largely disappointed. GLOBALT Investments senior portfolio manager Thomas Martin joins Market Domination Overtime to discuss the competition between the two and why Uber benefitted from the event.

"Both Tesla stock and Uber reacted the way you would have expected given the robo-day from Tesla. It was a classic example of long-term versus short-term. And they were the opposite for Uber and for Tesla," Martin says of the movement.

He tells Yahoo Finance that "if Tesla was able to solve automated vehicles and robo in the near term or you saw a roadmap for even the intermediate term, then that was a problem potentially for Uber longer term. But the devil is in the details."

As investors were left looking for more insight and further information about the robotaxi rollout, Uber became more attractive to investors. If Tesla cannot meet expected timelines for the release of its robotaxis, Uber will, therefore, have more time to get ahead of the game.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.

This post was written by Melanie Riehl

Video Transcript

Let's talk about Uber is as well, which surged about 11% in today's trade.

Thomas was that Was that just the the Tesla's, you know, robo taxi event, Thomas and folks concluding, OK, you know what uber is actually gonna be just fine here?

Yeah, there was a lot of that.

Both, uh, both Tesla stock and uber reacted the way you would have expected given, um, the the Robo Day from Tesla.

It was a classic example of long term versus short term, uh, and they were the opposite for uber and for Tesla.

So if if tesla was able to solve, um you know, uh, automated vehicles and robo in the near term or you saw a roadmap or even the intermediate term, then that was a problem, potentially for uber longer term.

But the devil is in the details, and there are a lot of, uh, competitive, um, parts of uber that, uh, will have a chance to really come into the fore before Tesla gets gets even close to their version of of automated vehicles.

And so that's what happened today.

And the stock had been off a good bit from its highs, and it's been gradually coming back.

Um, and yesterday was, uh, 5% below its high.

Of course, now it's 5% above its high.

But they have, you know, um, uh, demand aggregation and a lot of back end.

Um, uh, technology for the the driving market.

Uh, they have the cars on the road.

They have the drivers.

Uh, they are doing deals that keep them in the market, so they have a good way to go.

They have a lot of drivers of their revenues and earnings.

Um, just within their normal business.

So that stock is still, uh, probably just beginning to get back started.

We shall see.

Thomas.

Thank you so much.

Appreciate it.

Thanks so much for having me on.