Billionaire Investor Bill Ackman Is Betting Against Tesla -- At Least for Now

Billionaire investor Bill Ackman made a name for himself in the 21st century through activist short-selling

But these days, Ackman's fund, Pershing Square Capital Management, tends to own a dozen stocks at any given time, usually on the long side

Ackman is not actively shorting the stock or purchasing put options on the name, either

But Pershing launched a new position earlier this year, which is now the fund's largest holding

And it's essentially a bet against Tesla -- at least for now

The robotaxi revolution has begun Robotaxis with full-self-driving (FSD) capabilities are beginning to pop up in some of the largest cities in the country

After years of experts predicting that FSD would one day be ubiquitous, it feels the industry is now at a tipping point

Image source: Getty Images

Tesla plans to play a big role in the FSD revolution

Musk has been talking it for years, and Tesla recently launched its first batch of autonomous robotaxis in Austin, Texas, in what essentially looks a soft launch

Tesla's first robotaxis are geo-fenced, meaning they are only operating in parts of Austin, and the vehicles are also being overseen by humans remotely

But investors think this could be the beginning of a new robotaxi fleet that could potentially cut into the ride-hailing

In a post on X in February, Ackman praised the work of Uber's CEO Dara Khosrowshahi, who "has done a superb job in transforming the company into a highly fitable and cash-generative growth machine. " Ackman called Uber one of the highest-quality es he's seen in the market that could be purchased cheap compared to what it's really worth

While the billionaire investor may not have said it, a big bet on Uber is currently a big bet against Tesla

That's because both companies are banking on robotaxis to carry their future es, albeit in different ways

Tesla is building FSD electric vehicles and planning to launch its own robotaxi fleet

In a re note in late May, Wedbush analyst Scott Devitt said, "We continue to believe Tesla Robotaxi serves as a long-term threat to Uber's model

The initial launch may ramp slowly initially but 'gradually then suddenly' is a quote investors may be prudent to contemplate. " Not only could a robotaxi fleet without the cost of human labor challenge Uber, but Uber itself is betting on robotaxis with its plan to build a robust network of partners

The company has already forged partnerships with Waymo, Pony

Ai, and WeRide, among others

The plan is to launch autonomous vehicles from partners through its network

Furthermore, management believes the company is uniquely positioned to take advantage of the autonomous wave because companies building these vehicles will need a partner

Uber's massive platform and scale, operational capabilities, and experience on the regulatory side make it an obvious choice

Is Tesla a potential partner or future competitor

In its presentation, which is from February of this year, Uber lists Tesla as a potential partner

Earlier this year, some media outlets reported that Tesla was contemplating an acquisition of Uber

However, Musk has shut down those rumors, saying there is "no need" to buy Uber because Tesla has plenty of vehicles it can use for its fleet

Additionally, Musk envisions a scenario where Tesla owners can lend their vehicles to the fleet and earn passive income

This more or less positions the two companies as competitors in the robotaxi space -- at least for the time being

Could Tesla one day become a partner of Uber

Possibly, especially if Tesla's fleet struggles to scale

Perhaps there is room for more than one to thrive in the space, although, in the current ride-hailing sector, Uber and Lyft essentially control the entire market

In several instances this year, good news for Tesla's robotaxi fleet has sent s of Uber down

Uber, trading at 25 times forward earnings, is ly not baking in as much success in its autonomous ambitions

That's something for investors to keep in mind as they evaluate both stocks

Bram Berkowitz has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Tesla and Uber nologies

The Motley Fool recommends Lyft

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