Welcome to my presentation video today. The article below provides more details.
For decades, science fiction has whetted our appetite for vehicles that don’t need human drivers and transcend conventional boundaries.
But you can forget about George Jetson! The future is approaching faster than most analysts thought. Science fiction becomes scientific reality.
Research consultancy IHS Automotive predicts that 21 million self-driving cars will be on the world’s roads by 2035. IHS also estimates that global production of self-driving cars will reach 600,000 units by 2025, when the production will increase at a compound annual growth rate of 43.% for the next 10 years.
Goldman Sachs (NYSE: GS) estimates that the autonomous driving systems market is on track to generate $ 290 billion in revenue by 2035, up from $ 3 billion in 2015.
The technology available for self-driving cars is starting to match our imaginations and even lawmakers are catching up. So far, legislation has been passed in 29 US states and Washington, DC allowing driverless cars. Soon you will be able to text and drive your way. Below, I identify the best way to take advantage of this futuristic megatrend.
Fast track to the future …
A revolution is taking place in our four-wheeled homes. Advances in the speed and intelligence of increasingly downscaled chips have helped fuel this drastic change. Tiny chips replace metal widgets to replicate their function with improved efficiency, reduced weight and increased safety, in conventional and driverless vehicles.
As the graph shows, people in major countries around the world are increasingly adopting autonomous vehicles as a safe means of transportation:
Recent regulatory changes by the National Highway Traffic and Safety Administration will provide another wave of demand to fuel the geometric growth of this industry.
Now you might be thinking that you’ve already missed out on the big investment payoffs in self-driving cars, but you need to look beyond the obvious Wall Street actions.
The most well-known parts on self-driving cars are the alphabet (NSDQ: GOOGL) Google, which develops an autonomous car with electric propulsion, and manufacturer of electric cars You’re here (NSDQ: TSLA). Both of these companies are making headlines in this area.
Google is in the lead, although several major car manufacturers are jumping into the fray (see graph).
The software guiding the autonomous car from Google is called Google Driver and deals with all the functions usually handled by human drivers.
Dubbed the Waymo, Google’s self-driving car doesn’t need the passenger to perform any task other than starting it and entering the destination. You will not find a steering wheel or pedals, only an emergency brake. The dashboard provides situational awareness created via sensors, cameras and radar.
Waymo is currently developing self-driving taxis, which is an important step. Ridesharing applications such as Uber (NYSE: UBER) and Lyft (NSDQ: LYFT) have reconfigured city life, allowing people to ditch their cars and connect via their smartphones to real-time street events.
Last week, analysts at Bank of America (NYSE: BAC) issued a note to investors claiming that Uber is the most transformational smartphone development in the past decade. See the following tweet:
Sounds pretty cool. The problem is, Alphabet is a tech giant (market cap: $ 1.8 trillion) engaged in various businesses. Another ostensible game is Intelligence (NSDQ: INTC), which in 2017 bought Mobileye for $ 15.3 billion. Mobileye develops computer vision and detection solutions based on machine learning. However, Acquirer Intel is a large semiconductor maker (market cap: $ 158.4 billion) with fingers in many different pies.
With a market capitalization of $ 144.4 billion, the chipmaker Qualcomm (NSDQ: QCOM) is also getting a lot of attention as a stock of autonomous vehicles. But Qualcomm is not a pure trending game either.
As this graph shows, the stakes are high:
However, when technological breakthroughs do occur, I prefer to look for unorthodox pieces that offer inordinate room for growth. Which brings me to the events surrounding Apple (NSDQ: AAPL).
With billions of dollars in free cash flow generated each year, Apple has enormous capital to invest in disruptive technology. The Apple Car is a landmark project.
Given Apple’s track record of high quality, if the Cupertino giant is able to develop an autonomous vehicle, it’s a safe bet that it will be a state-of-the-art product.
But you might be surprised to learn that your best opportunity to make money with the Apple car isn’t to buy Apple stocks themselves.
Make a surprisingly simple move today and you’ll lock in your luck on a massive paycheck when Apple releases its explosive Apple Car news. For more details, visit this link.
John Persinos is the Editorial Director of Invest daily. You can reach him at: [email protected] To subscribe to his video channel, click here.