A company which can achieve level 5 automation and has the capability to roll it out worldwide is worth a hell of a lot more than $60 billion.
A company which can achieve level 5 automation and has the capability to roll it out worldwide is worth a hell of a lot more than $60 billion.
I think the broadest interpretation is that autonomous driving was one of a few irons Uber has had in the fire to achieve profitability. The other irons include Uber Eats, Jump, and lately, grocery delivery. The miracle hasn't happened yet!
The developing narrative seems to be that self-driving was a longshot that could have paid off hugely, had it worked out, but it's been plagued with problems and it just seems very unlikely to pay off now. But still not zero, since no one else has shipped anything.
Investors probably valued it like (0.7% chance of success * 1 trillion upside = 7 billion).