Why Uber Stock Is Volatile After GM's Cruise Announcement
Uber stock is swinging this week following news that General Motors is restructuring its Cruise unit. Here's what you need to know.


Uber Technologies (UBER) stock plunged nearly 6% Wednesday after General Motors (GM) announced it is exiting Cruise robotaxi development in order to refocus the unit on advancing its autonomous and assisted driving capabilities, but shares are almost 2% higher today. Uber and Cruise had formed a partnership earlier this year that would have brought Cruise vehicles to the ride-hailing firm's platform.
"In many ways this announcement highlights the economic challenges of scaling a robotaxi network and the role rideshare platforms can play as autonomous vehicles attempt to commercialize (a bullish indicator), but we think the more tangible impact right now is on the partnership ecosystem given Waymo is already scaling despite the costs and Tesla (TSLA) has ambitions to do so as well," wrote Bernstein analyst Daniel Röska in a December 10 note.
While Tesla can be seen as a direct threat to Uber in the robotaxi arena, Uber and Waymo are collaborating in cities like Phoenix, Austin and Atlanta, where Uber manages the fleet and operations of Waymo vehicles, including maintenance and charging.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
However, Waymo does not use Uber in other cities like San Francisco and recently announced its expansion to Miami in partnership with Moove.
"The plan is the next phase of Waymo's experimentation with various business models before committing to a long-term strategy," wrote Jefferies analyst John Colantuoni in a December 6 note.
Regarding Tesla, Uber remains optimistic about a potential robotaxi partnership. Uber CEO Dara Khosrowshahi told the Financial Times in October that he would "love" to have Tesla's Cybercab robotaxi on the Uber platform, according to Teslarati. But even if that doesn't happen, "I don't think this is going to be a winner-take-all marketplace," Khosrowshahi said. "We believe in the spirit of partnership; we'll see what Tesla does."
Is Uber Technologies stock a buy, sell or hold?
Uber Technologies has struggled on the price charts this year and is up just 1.5% since the start of 2024. Still, Wall Street is bullish on the large-cap stock.
According to S&P Global Market Intelligence, the average analyst target price for UBER stock is $90.05, representing implied upside of 45% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Jefferies is one of the more bullish outfits on UBER stock with a Buy rating and $100 price target. Colantuoni said the firm remains bullish on Uber due to its leading free cash flow growth and growing stock buybacks, among other reasons.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)
State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
Want To Retire at 55? See If You Can Answer These Five Questions
Who said you can’t retire at 55? If you say yes to these questions, you may be on your way to an early retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for Retirement
Saving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial Expert
Health care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?
Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest Rates
As speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial Professional
Winning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
-
S&P 500 Slips Ahead of Fed Week: Stock Market Today
All eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and Commentary
The September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.