What's going on?

Uber�s confident it�ll move faster without all these unnecessary extra features: the ride-hailing company announced late on Monday it�ll sell its self-driving business to self-driving startup Aurora.

What does this mean?

Uber took an early lead in the race to develop autonomous vehicle technology when it started the segment four years ago, but it�s faced major struggles � including a lawsuit over alleged technology theft and a fatality caused by one of its cars � ever since. Combine that with the high costs of running the business, and Uber figured it was time to quit while it was behind. It�ll swap its operations for a 26% stake in Aurora in a deal that values Uber�s autonomous driving unit at roughly $4 billion. That�s a healthy sum, sure, but it�s a big step down from the $7.5 billion it was estimated to be worth last year�.

Why should I care?

For markets: Ride-hailing those coat-tails.

Uber had been hoping to hit profitability by the end of 2020, but that was before the pandemic arrived. Now the company seems to be chasing that dream by doubling down on the sale of non-core, cash-burning segments � with air taxi business Elevate next on the chopping block. But these deals are more than just a way to save money: Uber�s stake in Aurora sets it up for a big payday if the startup becomes profitable � a potentially savvy bit of dealmaking that investors also saw when it sold its electric bike division to scooter company Lime.

The bigger picture: Good for the goose, not for the gander.

Speaking of electric wheels, Tesla announced on Tuesday it�ll sell $5 billion worth of new shares to cash in on its high share price following its 650% rally this year � the second time it�s done that in three months. More shares in the market does mean, of course, that current investors� shares will represent a smaller proportion of ownership in the company, which might be why Tesla�s stock was initially down 2%.