Uber Stock: Morgan Stanley Reduces Price Target Following EV Program Cuts

TLDR

• Uber shares fell 5.6% to $83.18 after Morgan Stanley reduced its price target from $115 to $110
• The company ended monthly electric vehicle driver bonuses as part of pullback on climate programs
• European protests escalated with 1,500 Barcelona taxi drivers blocking streets over proposed ride-hailing restrictions
• Citizens cited Waymo and Tesla autonomous vehicle technology as key competitive threats
• Stock remains up 31.7% year-to-date despite trading 16.9% below October’s 52-week high

Uber shares declined 5.6% on Wednesday following a Morgan Stanley price target reduction and reports of changes to driver incentive programs. The stock settled at $83.18 per share.

Uber Technologies, Inc., UBER

Morgan Stanley analysts lowered their price target to $110 from $115. The firm maintained its Overweight rating on the stock. This cut contributed to negative investor sentiment throughout the trading session.

The company discontinued its monthly bonus payments to electric vehicle drivers. The decision marks a retreat from previous climate-focused initiatives. Management appears to be adjusting priorities as it navigates multiple challenges across global markets.

European Regulatory Pressure Intensifies

Barcelona witnessed major disruptions as approximately 1,500 taxi drivers blocked the city center. The protest supports proposed legislation that could severely limit ride-hailing operations by reducing available licenses.

Opposition extends beyond Spain’s borders. Drivers in England’s Cotswolds region called for banning the Uber app entirely. Halifax officials in Canada are weighing new regulations to create parity with traditional taxi services.

These coordinated actions reflect ongoing tension between ride-hailing platforms and traditional taxi industries. Local governments face increasing pressure to address concerns from licensed taxi operators.

Analyst Perspectives on Competition

Citizens reaffirmed its Market Perform rating while acknowledging execution strength in Mobility and Delivery divisions. The firm identified three primary competitive risks facing Uber’s future.

Waymo could develop autonomous driving technology that eliminates the need for high-definition mapping. This advancement would enable partnerships with traditional automakers at scale.

A potential Waymo-Lyft merger represents another threat. Such a combination would create a hybrid network leveraging autonomous vehicles with lower operational costs.

Tesla’s autonomous technology potentially converging with Waymo’s capabilities poses the third risk. This scenario would produce a competitor with manufacturing scale and cost advantages over human-driven fleets.

Company Response and Market Position

Uber launched a robotaxi service in Dallas through its Avride partnership. The service operates in a 9-square-mile zone at no additional charge to riders. Plans include future expansion to other markets.

The company also partnered with Starship Technologies for autonomous food delivery robots. The program begins in Leeds, UK, in December 2025 with plans for broader European and U.S. deployment.

Despite Wednesday’s decline, Uber maintains a 31.7% gain year-to-date. The stock trades 16.9% below its October 52-week high of $100.10.

S&P Global Ratings upgraded Uber’s outlook to positive from stable. The agency cited 22% trip growth year-over-year in the third quarter of 2025. Growth stems from increased monthly active users and higher trip frequency per consumer.

Citizens noted that Waymo’s current vehicle supply constraints prevent immediate market share capture. However, technological breakthroughs could alter the competitive landscape quickly. Revenue growth hit 18.25% with five analysts raising earnings estimates recently.

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