The Rapid Rise of Driverless Technology: A New Era in Automotive Innovation

Reflecting on the past 50 years, it’s remarkable to see the transformation of technology. Just five decades ago, concepts like the internet and mobile photography seemed improbable.

In 1973, the debut of the first cell phone marked a turning point, despite it weighing around two-and-a-half pounds with a battery life of only 20 minutes. Fast forward two decades, and the DynaTAC 880X arrived as the first smartphone, equipped with features akin to today’s apps, including an address book, calculator, calendar, and email.

Source: IBM

However, the game-changing moment came on June 29, 2007, when Apple Inc. (AAPL) unveiled the iPhone.

Since then, smartphones have evolved significantly. Over the span of 47 years, mobile phones transformed from bulky devices with limited battery life into sleek smartphones, which can last nearly a full day on a single charge. Surprisingly, today’s smartphones boast processing power millions of times greater than the computers used during NASA’s Apollo 11 mission in the 1960s!

This evolutionary trend is not just limited to smartphones. For instance, tools like Google Lens allow users to capture images and instantly gather information about objects of interest.

Source: Google

The rapid advancement of smartphones exemplifies the Law of Exponential Progress. This principle explains how numerous subtle changes can reshape our world, often going unnoticed until a significant transformation occurs.

This phenomenon parallels current developments in the automotive industry, particularly with driverless cars, which may sound far-fetched but is progressing at an astonishing pace.

In today’s Market 360, I will discuss the rise of driverless cars and suggest ways you can invest in this emerging technology.

Tracing the Development of Driverless Cars

Let’s look back to understand how we arrived at this point.

Not long ago, navigating unfamiliar routes required physical maps or atlases, which was often complicated and could lead to getting lost. During the 1990s, GPS technology became available to consumers, providing users with alternatives like purchasing portable devices or costly built-in car systems that are now standard features.

Cars have also changed in how we start them. Initially reliant on traditional keys, vehicles now use ignition buttons and key fobs, enabling ignition from outside the vehicle.

Advancements in automotive technology have made vehicles progressively smarter. In 2003, self-parking cars were introduced. This innovation was soon followed by collision detection systems that warn drivers of nearby obstacles, and lane assist features that help prevent drifting.

In 2014, Tesla, Inc. (TSLA) launched its “autopilot” mode, which includes several functionalities such as lane centering, traffic-aware cruise control, self-parking, automatic lane changes, and semi-autonomous navigation.

The Society of Advanced Engineers has defined six tiers of vehicle autonomy, ranging from Level 0 (fully manual) to Level 5 (fully autonomous).

“`

The Rise of Autonomous Vehicles: Waymo and Tesla Lead the Charge

Waymo’s Groundbreaking Autonomous Program

Currently, many automakers find themselves limited to Level 3 automation. However, things are changing rapidly, especially with Alphabet Inc.’s (GOOG) Waymo leading the way in autonomous vehicle (AV) technology. Over the past decade, Waymo has developed its AV program and introduced its ride-hailing service in San Francisco and Phoenix. This system operates similarly to Uber Technologies, Inc. (UBER) and Lyft, Inc. (LYFT), with no human driver involved.

Waymo maintains a fleet of approximately 700 vehicles operating in cities including San Francisco, Phoenix, and Los Angeles. Their fully autonomous vehicles are currently available in San Francisco and the Metro Phoenix area, with service expanding gradually to Austin and Atlanta.

To request a ride, users simply download the Waymo One app.

To date, Waymo’s vehicles have traveled more than 22 million miles. They have undergone extensive testing in both simulated environments and real-life situations to boost their safety features, especially during accidents. According to Waymo’s peer-reviewed safety data, these vehicles experience 84% fewer crashes that trigger airbag deployment and 73% fewer incidents resulting in injury.

Additionally, without drivers, passengers can feel more secure, eliminating concerns that sometimes come with human interactions. Moreover, without drivers, there’s no need for tipping, making rides less expensive.

InvestorPlace colleague Luke Lango even took a Waymo ride to explore the experience firsthand, providing a video demonstration of the service.

Tesla’s Anticipated Announcement

Tomorrow could be a pivotal moment in the autonomous vehicle space, as Tesla is set to unveil its own entry into the market. At 8 p.m. Eastern, Elon Musk is expected to introduce the “Robotaxi,” a fully automated vehicle lacking mirrors, pedals, and steering wheels, instead relying entirely on AI-powered sensors to navigate roads.

This idea may sound unconventional, yet history shows us that such innovations can lead to significant shifts in technology. For instance, the early concept of using cell phones to access the internet seemed improbable until the iPhone launched. Today, 153 million people in the United States alone utilize iPhones, with that number growing to 1.46 billion worldwide.

Luke believes that we are on the brink of a similar breakthrough for autonomous vehicles, a potential “iPhone moment” for the industry. He suggests that the self-driving revolution is not just imminent but poised to become mainstream. In a recent video presentation, he elaborates on why this trend appears unstoppable.

He has identified a sub-$3 stock that he believes could be central to realizing Musk’s ambitious vision of a fully autonomous driving future.

For more insights into the Robotaxi, its potential impact on driverless car technology, and investment opportunities, click here to watch the replay.

Sincerely,

Louis Navellier

Editor, Market360