Top Driverless Vehicle Stocks to Watch for Long-Term Investment Now

The Future of Transportation: Three Promising Driverless Vehicle Stocks for Long-Term Investment

As the transportation industry undergoes a revolutionary shift, driverless vehicles are at the forefront of this transformation, promising to redefine how we travel. Investors eager to capitalize on this change are increasingly focusing on stocks in the autonomous vehicle sector. While giants like Tesla and Waymo often dominate headlines, there are other promising stocks that remain underappreciated. This article delves into three such opportunities that may be worth considering for long-term investment.

# The Rise of Driverless Technology

Driverless technology, once a figment of science fiction, is becoming a tangible reality with major tech companies and automotive manufacturers investing heavily in its development. McKinsey & Company projects the autonomous vehicle market to reach $556 billion by 2035, with significant growth anticipated as early as 2025. This burgeoning market presents a lucrative opportunity for investors with a vision for the future of transportation.

# Why Some Stocks Remain Overlooked

Despite the excitement surrounding driverless vehicles, many stocks in this sector do not receive equal attention. The focus often falls on established players like Tesla and Alphabet’s Waymo, overshadowing smaller firms with substantial potential. These lesser-known companies often possess unique technological advantages or strategic alliances that position them well for future growth.

# Luminar Technologies: A Leader in Lidar Innovation

What Sets Luminar Apart?

Luminar Technologies is making significant strides with its advanced lidar technology, which is crucial for enabling vehicles to accurately perceive their surroundings. Lidar, an acronym for Light Detection and Ranging, is a vital component of most autonomous driving systems. Unlike traditional radar or camera systems, lidar offers high-resolution, 3D representations of the environment, which is essential for safe vehicle navigation.

Luminar’s Market Position

Luminar’s strategic partnerships with automotive giants such as Volvo and Daimler position it to capture a significant market share. Luminar’s lidar sensors are set to be integrated into Volvo’s next-generation vehicles starting in 2022, marking a pivotal milestone. According to Business Insider, Luminar’s technology is regarded as one of the best, offering a range of over 250 meters at highway speeds, setting it apart in the industry.

# Mobileye: Intel’s Autonomous Driving Gem

A Subsidiary with a Bright Future

Mobileye, a subsidiary of Intel, has been at the forefront of computer vision technology for autonomous vehicles. Known for its EyeQ chip, Mobileye’s technology powers advanced driver-assistance systems (ADAS) in millions of vehicles worldwide. Its expertise in machine learning and data processing provides a competitive advantage in the autonomous vehicle sector.

Strategic Moves and Growth Potential

Mobileye recently announced a partnership with Geely, one of China’s largest automotive manufacturers, to develop advanced autonomous driving solutions. This collaboration represents Mobileye’s strategic expansion into the rapidly growing Chinese market, which is crucial for future growth. A Wall Street Journal article highlights Mobileye’s diverse portfolio and robust technology as key factors that make it a formidable player in the driverless vehicle sector.

# TuSimple: Pioneering Autonomous Freight Transport

Revolutionizing the Trucking Industry

TuSimple is an autonomous trucking company focused on transforming freight transportation. By concentrating on long-haul routes, TuSimple’s technology promises to enhance efficiency, reduce costs, and improve safety in the trucking industry, which is vital for global supply chains.

Recent Developments and Industry Impact

TuSimple has made notable advances, including a successful IPO in 2021 and partnerships with major logistics companies like UPS and Navistar. The company’s autonomous trucks are already operational on specific routes in the United States, showcasing their potential to disrupt traditional trucking models. Reuters reports that TuSimple’s technology could reduce transportation costs by 30%, offering a compelling value proposition for businesses.

# Analyzing the Investment Potential

Long-Term Viability and Risks

Investing in driverless vehicle stocks presents both opportunities and risks. These companies operate in a rapidly evolving environment, facing regulatory challenges and technological hurdles. However, their growth potential, driven by strategic partnerships and technological innovations, is significant. Investors should assess their risk tolerance and conduct thorough research before making investment decisions.

Expert Opinions

Industry experts predict that the adoption of autonomous vehicles will accelerate in the coming years, spurred by advancements in artificial intelligence and an increased demand for efficient transportation solutions. A report from the International Transport Forum underscores the potential for autonomous vehicles to reduce traffic congestion and lower emissions, aligning with global sustainability goals.

FAQ

Q: What makes Luminar Technologies a promising investment in the driverless vehicle sector?
A: Luminar Technologies stands out due to its cutting-edge lidar technology, which provides the high-resolution, 3D mapping capabilities essential for autonomous driving. Its strategic partnerships with automakers like Volvo enhance its market potential significantly.

Q: How does Mobileye’s technology contribute to the autonomous vehicle industry?
A: Mobileye’s EyeQ chip and computer vision expertise are integral to advanced driver-assistance systems in millions of vehicles, establishing it as a leader in autonomous technology development.

Q: Why is TuSimple’s focus on autonomous trucking significant?
A: TuSimple aims to revolutionize freight transport by enhancing efficiency and reducing costs. Its strategic partnerships and successful operations on U.S. routes underscore its potential to disrupt the traditional trucking industry.

Q: What are the risks associated with investing in driverless vehicle stocks?
A: Investing in this sector involves risks like regulatory challenges, technological hurdles, and market volatility. Potential investors must perform diligent research and have a thorough understanding of the industry dynamics.