Uber CEO Dara Khosrowshahi Just Gave Tesla Investors a Stark Warning

Tesla (NASDAQ: TSLA) is planning to launch its own robotaxi service in Austin this summer. The service will use a fleet of Tesla-owned vehicles employing the first version of its unsupervised Full Self-Driving (FSD) software.

However, Tesla won't be the only autonomous vehicle ride-hailing service in Austin this summer. Uber (NYSE: UBER) riders may also find themselves inside one of Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Waymo vehicles thanks to a partnership between the two companies. And Uber CEO Dara Khosrowshahi has a warning for Tesla and its plans to go it alone.

"Demand often is quite variable," Khosrowshahi said at a recent conference. That's why even a company that can afford to sink billions of dollars of capital into building an autonomous vehicle fleet like Alphabet has opted to partner with Uber in several cities. Uber believes it has already solved the biggest challenges of bringing an autonomous vehicle service to market.

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