Table of Contents
- 1 Alphabet Inc.
- 2 Tesla Inc.
- 3 Nvidia Corp.
- 4 General Motors Co.
- 5 Uber Technologies, Inc.
- 6 Intel Corp.
- 7 Aptiv Plc
- 8 Ford Motor Co.
- 9 Advanced Micro Devices, Inc.
- 10 Volkswagen AG
- 11 Daimler AG
- 12 Lfyt Inc.
Developing full self-driving cars, even with advanced technologies, it’s extremely difficult.
But one day the nut is going to be cracked. And when that day comes, a huge market with huge revenue potential is going to explode.
And of course, this explosion is not going to happen overnight, and there will be no full self-driving cars without the companies developing them.
I know you understand how these things works. If you invest in the right self-driving car companies today (before the explosion), you are going to make a lot of money, when the value of these companies jump off the roof as a result of that explosion.
But you and I know that it is not as easy as it sounds.
In this article I’m going to list what I consider the best self-driving (autonomous) car companies stock that are worth buying and holding for the long term.
And your job is to go through the list and figure out the right self-driving car companies to invest in for the long term.
Having in mind, that the right companies may not necessarily be the first to develop full self-driving cars or even be directly developing self-driving car.
The right companies might be companies with good track record that has the potential to grow their stock value by capitalizing on the self-driving car industry.
Here are 12 Best Self-driving car stocks to buy and hold for the long term:
Alphabet, Inc. is a holding company, which engages in the business of acquisition and operation of different companies. It operates through the Google and Other Bets segments.
The Google segment includes its main Internet products such as ads, Android, Chrome, hardware, Google Cloud, Google Maps, Google Play, Search, and YouTube.
The Other Bets segment consists of businesses such as Access, Calico, CapitalG, GV, Verily, Waymo, and X.
Why Alphabet Inc.
A bet on Alphabet is a bet on Waymo.
Waymo is a subsidiary of Alphabet that is currently leading the race for self-driving car development.
Considering Alphabet’s track record, Waymo is on track to seize a large part of the self-driving car market.
A major advantage of the Alphabet Class C stock is that they play in numerous markets which reduces risk for you. And they don’t just play, in most cases they are a star player in the respective market.
If you are looking to invest in a leader in self-driving car development, then the Alphabet stock should be on the top of your list.
Tesla, Inc. engages in the design, development, manufacture, and sale of fully electric vehicles, energy generation and storage systems. It also provides vehicle service centers, supercharger station, and self-driving capability.
The company operates through the following segments: Automotive and Energy Generation and Storage. The Automotive segment includes the design, development, manufacture and sale of electric vehicles.
The Energy Generation and Storage segment includes the design, manufacture, installation, sale, and lease of stationary energy storage products and solar energy systems, and sale of electricity generated by its solar energy systems to customers. It develops energy storage products for use in homes, commercial facilities and utility sites.
Why Tesla Inc.
Tesla currently have the most sought after semi-autonomous and electric cars. It is the leader in the electric car market and a leader in the self-driving race.
People like to throw the line of Tesla being a ‘young automaker’ with few cars in the market, not minding the fact that Tesla is worth more than Ford Motors and General Motors combined.
And Telsa being a young automaker with lots of room for expansion makes it even more attractable and suitable as a stock to buy and hold for the long-term.
Its recent expansion to China (the largest EV market) and impending expansion to Europe through it Gigafactory constructions, is putting it on the map for Global dominance of the EV market.
As a self-driving car stock, Telsa has lots of advantages. When its full self-driving technology comes to light, Tesla won’t be looking to enter the market, it would have already have strong footing in the Auto market.
NVIDIA Corp. engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. It operates through the Graphics Processing Unit (GPU) and Tegra Processor segments.
The GPU segment comprises of product brands, which aims specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users.
The Tegra Processor segment integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for consoles and mobile gaming and entertainment devices.
Why Nvidia Inc.
NVidia enters into the self-driving car hall from two doors. The first door is as a company developing self-driving technologies and solutions, while the second door is as a chipmaker for the self-driving car companies.
Its latest chip for self-driving vehicles, the NVIDIA DRIVE AGX Orin, is nearly 7x the performance of NVIDIA Xavier.
NVidia stock has a great growth track record; it is a leading chipmaker and a leader in the self-driving car race.
In essence, NVidia is worth it in the long run.
General Motors Co.
General Motors Co. engages in the designing, manufacturing, and selling of cars, trucks and automobile parts.
It also provides automotive financing services through General Motors Financial Company, Inc.
The firm operates through the following segments: GM North America, GM International, Cruise and GM Financial.
It sells vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Wuling, Maven, and OnStar brands.
Why General Motors Co.
A bet on General Motors (GM) is a bet on its subsidiary GM Cruise.
Cruise is a leading self-driving car company, with over 1800 employees working on its self-driving cars: they mean business.
GM Cruise unveiled the Cruise Origin (a driverless shuttle) in January, 2020. Sending the message that they have their eyes on driverless ride sharing service of the near future.
Like I said, a bet on GM is a bet on GM Cruise.
Uber Technologies, Inc.
Uber Technologies, Inc. operates as a technology platform for people and things mobility. The firm offers multi-modal people transportation, restaurant food delivery, and connecting freight carriers and shippers.
It operates through the following segments: Rides, Eats, Freight, Other Bets and ATG and Other Technology Programs.
- The Rides segment refers to products that connect consumers with Rides Drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis.
- The Eats segment allows consumers to search for and discover local restaurants, order a meal, and either pick-up at the restaurant or have the meal delivered.
- The Freight segment leverages proprietary technology, brand awareness, and experience revolutionizing industries to connect carriers with shippers on its platform, and gives carriers upfront, transparent pricing and the ability to book a shipment.
- The Other Bets segment consists of multiple investment stage offerings.
- The ATG and Other Technology Programs segment primarily responsible for the development and commercialization of autonomous vehicle and ridesharing technologies, as well as Uber Elevate.
Why Uber Technologies, Inc.
Uber self-driving project has suffered multiple setbacks but its recent resurgent gives hopes for its future.
Many analyst have expressed that self-driving cars are what Uber needs to go from struggling to profit. If Uber self-driving project comes through, it will speedily put Uber stock on a great growth run.
As it stands with all the setbacks, Uber is still leading the pack in the ride-hailing market. Self-driving technology is expected to explode the ride-hailing market, as less people will need or want to own cars.
As a leader in the ride-hailing market (a multi-billion dollar market), Uber is well positioned to tap from the revolution of full self-driving technology.
Don’t forget the fact that Uber don’t necessarily need to develop its self-driving technology in-house. But if its self-driving project come through, it will certainly speed growth up for Uber.
Intel Corp. engages in the design, manufacture, and sale of computer products and technologies. It delivers computer, networking, data storage, and communications platforms.
The firm operates through the following segments: Client Computing Group (CCG), Data Center Group (DCG), Internet of Things Group (IOTG), Non-Volatile Memory Solutions Group (NSG), Programmable Solutions (PSG), and All Other.
- The CCG segment consists of platforms designed for notebooks, 2-in-1 systems, desktops, tablets, phones, wireless and wired connectivity products, and mobile communication components.
- The DCG segment includes workload-optimized platforms and related products designed for enterprise, cloud, and communication infrastructure market.
- The IOTG segment offers compute solutions for targeted verticals and embedded applications for the retail, manufacturing, health care, energy, automotive, and government market segments.
- The NSG segment constitutes of NAND flash memory products primarily used in solid-state drives.
- The PSG segment contains programmable semiconductors and related products for a broad range of markets, including communications, data center, industrial, military, and automotive.
- The All Other segment consists of results from other non-reportable segment and corporate-related charges.
Why Intel Corp.
Intel is a leading chipmaker that is positioning itself to tap from the self-driving car market. It’s currently a supplier of chips for semi-autonomous cars. Intel is not just sitting on the sideline with its chips waiting to enter the self-driving market through the back door.
Like NVidia, it is walking in from both doors: The front and back door.
Intel bought Mobileye, a self-driving car company that develops self-driving cars using cameras only (no LIDAR or radar).
Mobileye currently runs a self-driving taxi service in Israel.
Intel stock has a good track record; they have proven over and over again that they know how to butter their bread.
A great self-driving car stock to buy for the long-term.
Aptiv Plc engages in the design, development, and manufacture of vehicle components. The firm also provides electrical, electronic, and safety technology solutions to the global automotive and commercial vehicle markets.
It operates through the following business segments: Signal and Power Solutions, Advanced Safety and User Experience, and Eliminations and Other.
- The Signal and Power Solutions segment includes complete electrical architecture and component products.
- The Advanced Safety and User Experience segment covers component and systems integration in connectivity and security solutions, as well as advanced software development and autonomous driving technologies.
- The Eliminations and Other segment comprises of elimination of inter-segment transactions, other expenses, and income of a non-operating or strategic nature.
Why Aptiv PLC
Aaptiv entered the stock market in December 2011, and their growth record is not bad.Aptiv self-driving cars, in partnership with Lyft, have successfully provided over 100,000 commercial rides in Las Vegas. They are not just close to the river, they are already swimming in it.
The Aptiv stock is a self-driving car stock that is has lots of promise.
They beat just about any other commercial robotaxi service providers including Alphabet’s Waymo robotaxi service in successful commercial ride counts by a wide margin. And their self-driving technology is one of the most advanced.
Ford Motor Co.
Ford Motor Co. engages in the manufacture, distribution, and sale of automobiles. It operates through the following three segments: Automotive, Mobility, and Ford Credit.
- The Automotive segment engages in developing, manufacturing, marketing and servicing of Ford cars, Lincoln vehicles.
- The Mobility segment includes Ford Smart Mobility LLC and autonomous vehicles business.
- The Ford Credit segment comprises Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities.
Why Ford Motors Co.
Ford are really taking self-driving development serious. They have invested billions of dollars in the pursuit for self-driving technologies. Most notable is their investment in Argo (a leading self-driving car company), that is responsible for developing the self-driving technology that Ford will integrate into its own vehicles.
Hopefully, Ford’s drive in pursuing self-driving technology will return them to their stock’s glory days of the late 1990s and early 2000s and eventually take them higher than that.
And the way they are driving it’s most likely, making their stock a good stock for investors like you who wants a stake in the self-driving market.
Advanced Micro Devices, Inc.
Advanced Micro Devices, Inc. engages in the provision of semiconductor businesses.
It operates through the following segments: Computing & Graphics, and Enterprise, Embedded and Semi-Custom.
- The Computing and Graphics segment includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units, data center and professional GPUs and development services.
- The Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, semi-custom System-on-Chip products, development services and technology for game consoles.
AMD is a leading chipmaker, one that has a history of lagging behind when it comes to transiting into new high-growth sector and innovation of new chips.
While that might seem negative, in the last decade (2010 – 2020) AMD stock has grown over 500% far more than Intel’s stock. It is the best performing stock on the S&P 500 for the last two years.
AMD might be late to the show, but it will definitely show up and it always makes it mark when it arrives. As such if you are interested in investing in a leading chipmaker for self-driving cars beside NVidia and Intel, AMD should be next on your list.
Volkswagen AG engages in the production and sale of passenger cars and light commercial vehicles. The firm also develops vehicles and components for the brands of the group.
It operates through following segments: Passenger Cars, Commercial Vehicles, Power Engineering, and Financial Services.
- The Passenger Cars segment covers the development of vehicles and engines; production and sale of passenger cars and light commercial vehicles; and the corresponding genuine parts business.
- The Commercial Vehicles segment covers the development, production, and sale of light commercial vehicles, trucks, and buses; and the corresponding genuine parts business and related services.
- The Power Engineering segment deals with the development and production of large-bore diesel engines, turbo compressors, industrial turbine,s and chemical reactor systems; and the production of gear units, propulsion component,s and testing systems.
- The Financial Services segment involves dealer and customer financing, leasing, banking, insurance, fleet management services.
Why Volkswagen AG
Volkswagen is one of the top traditional automakers putting lots of eggs in the self-driving car basket.
It has a subsidiary, Volkswagen Autonomy that is tasked with developing self-driving technologies for the company.
Volkswagen also invested billions of dollars in external self-driving car companies/projects to complement its in-house development.
They are partners in the Baidu’s Apollo self-driving car project. And also invested $7 billion in Argo as it joins Ford in tapping the technologies of this leading self-driving car company.
Volkswagen with all its brans, have a strong footing to take a significant portion of the impending self-driving car market. And grow its stock drastically as a result.
Daimler AG engages in the production and distribution of cars, trucks, and vans. It operates through the following segments: Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, and Daimler Financial Services.
- The Mercedes-Benz Cars segment sells passenger cars and off-road vehicles under the Mercedes-Benz brand and small cars under the smart brand.
- The Daimler Trucks distributes its trucks under the brand names Mercedes-Benz, Freightliner, FUSO, Western Star, and BharatBenz.
- The Mercedes-Benz Vans segment manufactures commercial vans such as Sprinter large van, the Vito mid-size van, and the Mecedez-Benz Citan urban delivery van.
- The Daimler Buses segment trades city and intercity buses, coaches, and bus chassis under the Mercedes-Benz and Setra brands.
- The Daimler Financial Services segment consists of tailored financing and leasing packages for customers and dealers. It also provides services such as insurance, fleet management, investment products, and credit cards.
Lyft, Inc. engages in the provision and management of online social rideshare community platform.
It provides access to a network of shared bikes and scooters for shorter rides and first-mile and last-mile legs of multimodal trips, information about nearby public transit routes, and Lyft Rentals to offer riders a view of transportation options when planning any trip.
Henry John is a Stock Portfolio Manager that focuses on companies developing cutting-edge technologies.
Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.