Which Car Stocks Should You Buy for a Self-Driving Future?

TL;DR

Investing in car stocks focused on self-driving technology presents significant profit opportunities, as autonomous vehicles are expected to lower ride-hailing costs to 25 cents per mile. Key players include lidar technology firms like Velodyne and Luminar, established automakers like General Motors, and tech giants such as Intel and Alphabet, all poised for growth in this evolving market.

Transcript

hey bowtie nation joseph hogue here with let's talk money and a video for what could be the biggest investing theme over the next decade self-driving cars not only will autonomous vehicles change the way we drive but will represent a massive change in everything from public transportation parking and even auto manufacturing just think about this if... Read More

Key Insights

• 😨 Self-driving cars could revolutionize transportation and reduce the cost of ride-hailing services, impacting car ownership.
• ❓ Companies specializing in lidar technology, such as Velodyne Lidar and Luminar Technologies, have significant growth potential.
• 🤩 Established car manufacturers like General Motors and Intel's investment in autonomous driving technology could make them key players in the industry.
• ⚾ Tesla's camera-based self-driving system might have an advantage in being first to market, but the accuracy of lidar-based systems could give other companies an edge.
• 😨 Alphabet's Waymo unit and Intel's Mobileye are positioned to benefit from the self-driving car trend.
• 🤳 Aptiv, an established company in the electronics and safety systems industry, has partnered with Lyft and Hyundai to develop software for self-driving vehicles.
• 😀 Baidu, known as China's version of Google, has a solid internet business but may face challenges with its infrastructure-based self-driving system.

Questions & Answers

Q: How will self-driving cars impact transportation and car ownership?

Self-driving cars have the potential to significantly decrease the cost of ride-hailing services, making it more convenient and affordable for people to rely on them instead of owning their own vehicles. This could lead to a decline in car ownership and a shift in how people think about transportation.

Q: Why is the development of self-driving technology focused on lidar and camera-based systems?

Companies like Tesla are prioritizing camera-based systems for self-driving, as they can be developed faster and at scale. On the other hand, lidar-based systems offer higher accuracy but require significant infrastructure and mapping. Both technologies have their advantages and applications in autonomous driving.

Q: What are the potential market sizes for ride-hailing platforms and car makers in the self-driving car era?

Ride-hailing platforms are estimated to become a $1.2 trillion market by 2030, with a projected enterprise value of $3.8 trillion by 2025. Car makers could experience a $40 billion boom in the next three years due to increased demand. Ride-hailing fleets alone could generate $70 billion in earnings.

Q: Which companies are developing lidar technology for self-driving cars?

Velodyne Lidar and Luminar Technologies are two prominent companies developing lidar technology. Velodyne has partnerships with major car manufacturers and a diversified product portfolio, while Luminar has shown strong growth in the industry but focuses solely on lidar technology.

Summary & Key Takeaways

• Self-driving cars are expected to lower the cost of ride-hailing to 25 cents per mile, making it a more affordable option than owning a personal car.

• The development of autonomous vehicles will impact not only car manufacturers but also software and hardware companies.

• Investing in car stocks that are part of the supply chain for self-driving technology presents an opportunity for significant profits.