Uber Will Test Self-Driving Vehicles In London As Tesla's Robotaxi Challenge Nears

Uber Technologies (UBER) will soon test driverless cars on the streets of London, in collaboration with the autonomous vehicle startup Wayve. Uber stock edged higher early Tuesday following the announcement, which comes ahead of Tesla's (TSLA) much-anticipated robotaxi launch in Austin, Texas.

The companies will begin testing Level Four autonomous vehicles in London as early as 2026, according to an announcement Tuesday. The trials will combine Wayve's AI-powered driving platform with Uber's mobility app.

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"Wayve's globally scalable AV2.0 approach makes them an ideal partner to bring Uber's autonomous vision to reality in new cities around the world," Uber Chief Operating Officer Andrew Macdonald said in the news release. "Our vision is to make autonomy a safe and reliable option for riders everywhere, and this trial in London brings that future closer to reality."

The move comes after the U.K. announced an "accelerated framework for self-driving commercial pilots," Uber noted.

On the stock market today, Uber stock is up nearly 1% at 87.95 in premarket action.

Uber Stock: Up 44% This Year

Uber stock slumped late last year on fears that autonomous vehicles from Waymo and Tesla would challenge its dominance in the ride-hailing market, particularly in the U.S. Waymo is already active in four U.S. cities, while Tesla is expected to announced some version of a robotaxi service later this week.

While Uber sold off its own autonomous-vehicle division five years ago, it has struck partnerships with several AV developers to place their vehicles on its app. Uber is partnered with Waymo in Austin and Phoenix, with an Atlanta partnership launching soon.

The ride-hailing company also has announced partnerships with AV developers such as Pony AI (PONY), WeRide (WRD), May Mobility, Volkswagen and Avride, which is part of Nebius Group (NBIS).

Those partnerships had helped Uber stock bounce back this year. Shares are ahead 44% year-to-date. The stock broke out to new highs in trading last month before pulling back.

BofA Securities analyst Justin Post wrote to clients Monday that "Overall, we see proliferation of multiple (level 4) AV providers benefiting Uber via its nearly 20 AV partnerships and global footprint/scale." He reiterated a buy call on Uber stock.

Uber stock slumped late last month following a report that Tesla's robotaxi competitor was targeting a June 12 launch.

But shares have bounced back. Uber stock retook its 21-day moving average with a 1.8% gain Monday after sliding beneath the short-term moving average on May 29.

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