Many investors are bullish on the automated car market. The autonomous driving industry sees a tremendous amount of potential growth over the coming years. There are many self-driving car stocks that are set to benefit from this growth. Many top car companies have been taking advantage of this earnings potential, and have begun investing in driverless technology.
Expected Growth of Self-Driving Cars
Last year, IHS Automotive predicted that by 2035, there would be 21 million self-driving cars on the road. This figure was reached by analyzing many factors, included recent investments into the autonomous driving industry. The company predicted that global sales of self-driving vehicles would reach 600,000 units by 2025, and grow at a 43% annual growth rate from then until 2035.
Intel recently released a study that predicted a $7 trillion annual stream for self-driving vehicles, making now the ideal time to invest in self-driving car technology stocks. The study predicted growth of $800 billion in 2035 to $7 trillion by 2050. Intel is one of the top companies entering the autonomous driving industry, having just pledged to spend a quarter of a billion dollars to develop self-driving technology.
Intel is also working with one of the top car companies, BMW, to introduce self-driving cars to the road by the end of the year.
Another reason companies are investing so heavily in self-driving technology is because of the safety features they present. Intel’s study predicted that in one decade, over a half-million lives could be saved by self-driving technology. According to the National Highway Traffic Safety Administration (NHTSA), 94% of serious crashes involving automobiles are because of human error.
The United States Government Has Taken Notice
No industry with a large market capitalization exists in the United States without some form of government regulation. This is why recent news out of Capitol Hill speaks volumes about the expected growth of the self-driving car market.
In September, the Self-Drive Act was unanimously passed by the House of Representatives. The bill sought to clarify how self-driving vehicles would be regulated by the federal government and states. In years past, vehicle safety was regulated by the federal government and vehicle operations were regulated by the state. Driverless technology blurs these two lines.
A promising sign for the future of the industry, the bill eliminates many concerns expressed by automakers and tech companies. Both were fearful that a patchwork of 50 different state regulations would be passed in an attempt to govern and regulate self-driving vehicles.
Inconsistent regulations were expected to slow the rate at which driverless technology was released, as manufacturers would be forced to make specific cars for each set of regulations. The federal government has alleviated this problem by working toward a standard set of regulations.
If the House bill becomes law, it could expedite the commercial release of self-driving cars, and help many self-driving car technology stocks. The Senate is currently working on a driverless vehicle bill as well. Additionally, the NHTSA recently released new guidelines for self-driving cars.
The fact that the federal government is taking notice of the autonomous car industry speaks to the expected impact self-driving cars will have in the country. These bills and guidelines are preemptive measures should give confidence to investors and help ease the commercial rollout of self-driving cars.
Top Self-Driving Car Stocks
If you’re looking to invest in an industry that features a tremendous opportunity for potential future growth, look no further than self-driving car technology stocks. If you’re looking to maximize future gains, invest in these self-driving car stocks before their share price skyrockets.
Alphabet (GOOGL, GOOGL)
Self-driving cars were once considered a side-project for Google. Now, they have turned that into a sustainable company, Waymo, with a valuation of $70 billion.
Yes, the same company that used to produce phones is now a must-buy in the autonomous industry. BlackBerry is more concerned with the security of autonomous cars. In a world running rampant with hackers, BlackBerry could position themselves as a key player moving forward. The company, who has already been working with Ford, can completely reshape its business model.
Although the stock’s target price is $180, Citigroup analysts predicted shares could rise as high as $300. Nvidia technology is used in the Tesla driverless car. The company is partnered with over 225 companies.
The leader in autonomous driving, Tesla will be a key player in the industry for years to come. Stock prices have been between $300 and $400 this year. The stock recently dropped which could present a good buy-now opportunity for many investors.
The company has been working to integrate their software into autonomous cars, allowing for a complete user experience. The company has been implementing its Azure cloud service into smart-car technology.
Top Car Companies Competing Within the Autonomous Industry
Many of the top car companies and top tech companies have been working together to make advancements in self-driving cars. Below are some of the companies who have been competing within the industry.
Tesla is at the forefront of the autonomous driving industry. The Tesla driverless car was the first released to market. A year ago, Tesla announced that all of their cars produced moving forward would have the capability to be full self-driving thanks to their driving system, Autopilot. It seems as though company CEO Elon Musk has recently backed off that claim, however.
Regardless, the Tesla driverless car will continue to improve and be considered the industry standard moving forward.
Researchers with Apple recently published an online journal article that introduced a new method for self-driving cars to use when detecting cyclists, pedestrians, and other 3-D objects. The paper introduced a new technology they called “VoxelNet,” which uses artificial intelligence and complex computer vision to detect objects.
If VoxelNet outperforms the current 3-D detection used in cars, the LiDAR system, it could instantly make Apple a key player in the autonomous car industry. The extent of Apple’s involvement in the autonomous driving industry was previously unknown, besides a few vague comments from CEO Tim Cook.
Cook previously said, “We are very focused on autonomous systems. We do have a large project going, and are making a big investment in this. From our point of view, autonomy is sort of the mother of all AI projects.” It could soon become clearer was Cook was referring to.
One of the top car companies, GM’s is hosting a year-end webcast for investors where they’ve said they would “share our vision for an autonomous future.”
CEO Mary Barra recently said, “Electric self-driving cars will save millions of lives, and it significantly accelerates the transition to sustainable entry to the world of zero emissions, but only when they’re deployed at large scale. So our focus working with [GM’s self-driving subsidiary, Cruise Automation] is to make sure we’re positioned to rapidly deploy self-driving cars at scale.”
Initially founded as a ridesharing company, Uber has been making a strong push into the autonomous driving industry by partnering with top car company Volvo. Volvo will sell 24,000 XC90 SVUs to Uber, who will turn these cars into a fleet of driverless vehicles. Uber head of auto alliances, Jeff Miller, said, “This new agreement puts on a path toward mass-produced self-driving vehicles at scale.”
Also founded as a ridesharing company, Lyft has been making a push into the self-driving car industry. The company founded a self-driving technology development center earlier this year and has been working with numerous other partners to develop sustainable technology. They just received permission from the California Department of Motor Vehicles to test their technology on public roads.