Autonomous cars

So far in this series, we have covered how mainstream automakers (XLY) such as General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) have increased efforts to hit the road with their autonomous vehicles lately. These efforts include their collaborations with and investments in technology companies.

It’s important to note that the development of driverless vehicles is only possible with the integration of automation-capable hardware in vehicles. In simpler terms, we can think of the vehicle as the body of an autonomous vehicle and the software and platforms capable of vehicle automation as the mind. Therefore, the role of vehicle automation platforms is critical for the functioning of driverless vehicles.

Why Don’t Tech Giants Want to Produce Their Own Autonomous Cars?

Providing platforms for autonomous vehicles

Mainstream tech giants such as Intel (INTC), NVIDIA (NVDA), Samsung, and Alphabet’s (GOOGL) (GOOG) Waymo all have said they’re working to develop the technology needed for self-driving cars.

During an interview with Bloomberg, Tim Cook, Apple’s (AAPL) CEO, emphasized the role and importance of core technology for autonomous vehicles. He also suggested that Apple is “focusing on autonomous systems.”

These tech companies are well aware of the cyclical and highly capital-intensive nature of the automotive business. This could be the reason why they want to benefit by only supplying the platforms and software to allow vehicle automation rather than producing their own vehicles.

Experts see vehicle automation as one of the biggest revolutions in the auto industry. Therefore, we shouldn’t expect any company to do everything from researching, developing platforms, testing, and producing fully autonomous vehicles, at least not at this early stage.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.