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Despite the potential of the Cyber Cab, experts suggest that Tesla will face considerable competition from companies like Uber, which currently boasts 24 million active riders. A noted fund manager, Gary Black, raised concerns over Tesla's ability to penetrate this market given its fledgling status in ride-hailing. He emphasized the challenges Tesla might face in scaling its operation and capturing market share.
However, Lutz argued that Tesla has a distinct advantage due to its vertically integrated structure, making it less reliant on outside partners for essential components and technology. This internal synergy positions Tesla to optimize costs more effectively than competitors reliant on third-party technologies.