RBC CAPITAL ON $TSLA (+0.3%) AND AVS: "WHAT IF TESLA PLAYED BALL WITH $UBER (+0.38%) & $LYFT (+0.29%)
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"We have rising conviction that Tesla may be more open to working with UBER and LYFT at some point as distribution partners for its AVs. Consistent with our June deep-dive report, we believe the successful AV networks of the future will involve deeply integrated partnerships composed of OEMs, suppliers, software enablers, and ride-hailing networks all playing their critical roles in delivering a safe, reliable, and, importantly, economically sustainable service. This could lower the cost of vehicular transportation and take share from private vehicle ownership."

"Importantly, we think both UBER and LYFT likely participate in this rising tide as vehicle supply participants would likely not sole-source for demand generation. While we remain mindful of Tesla’s ability to irrationally subsidize for a period, longer-term, we think the path of least resistance is plugging into almost immediate vehicle utilization. This would shift what is currently a possible existential risk for UBER and LYFT into simple TAM expansion."