It’s amazing to think how far technology has come in the past 50 years. Five decades ago, accessing the internet or taking pictures from a mobile phone was unheard of.
When the first cell phone launched in 1973, it weighed about two-and-a-half pounds. And the battery lasted about 20 minutes. Then, 20 years later, the DynaTAC 880X came to market, which is known as the first smartphone. It had a variety of features (what we consider apps), including an address book, calculator, calendar and email.
Source: IBM
But as we all know, the real watershed moment came on June 29, 2007, when Apple Inc. (AAPL) introduced the iPhone.
Over the years, smartphones grew smaller, thinner, and had far more capabilities and apps. In about 47 years, cell phones went from weighing more than two pounds with only 20 minutes of battery to a few ounces with almost a day’s worth of battery life. Plus, today’s smartphones are literally millions of times more powerful than NASA’s Apollo 11 computers in the 1960s!
The evolution was steady but dramatic. Today, for example, you can use tools like Google Lens on your phone to take a picture of a specific object that you want more information about.
Source: Google
The reason for the smartphone’s dramatic evolution is because of the Law of Exponential Progress. This is when a long series of tiny, gradual changes alter our world, yet we barely notice them until one day, we wake up and realize a massive change has taken place.
I bring this up because we’re seeing the same phenomenon occur in the automotive sector with driverless cars. It sounds crazy, but it’s becoming a reality faster than you think.
So, in today’s Market 360, I’ll explain how driverless cars have taken shape and how you can position yourself to profit from it.
The Evolution of Driverless Cars
Let’s start by taking a journey back in time.
Not too long ago, if you were traveling somewhere new, you needed to use a map or atlas for directions. It could be a frustrating process, having to constantly check the map and potentially winding up lost. However, come the 1990s, computer-powered car GPS systems were available for mass consumer purchase. So, folks had an option of using a map, buying a little GPS device that they could attach inside their car or, paying a bit more for a GPS that was built into the car itself. It was pricey, but what was once considered an extra feature now comes standard in most cars.
There have also been significant changes in how we start our cars. For decades, we had to turn a key, then the ignition button came along, and now people can turn their car on with a key fob without even going inside!
As cars and technology have advanced, they’ve grown “smarter,” too. In 2003, the first cars were introduced that could parallel park themselves. Shortly after, collision detection sensors began appearing in cars to alert drivers of objects and people when backing up. Then lane assist became standard in many cars, so folks didn’t run off the road if they were distracted.
In 2014, Tesla, Inc. (TSLA) introduced “autopilot,” which features lane centering, traffic-aware cruise control, self-parking, automatic lane changes and semi-autonomous navigation.
The Society of Advanced Engineers outlines six levels of vehicle autonomy, from Level 0, which is fully manual, to Level 5, which is fully autonomous.
Source: Synopsis
Now, most automakers have been stuck at Level 3 – until recently, that is…
Alphabet Inc.’s (GOOG) Waymo operates the most advanced autonomous vehicle (AV) program in the world. It has been developing autonomous vehicle technology over the past decade, and the division began testing its autonomous ride-hailing service in San Francisco and Phoenix a few years ago. It works the same way when you request a ride through Uber Technologies, Inc. (UBER) or Lyft, Inc. (LYFT), but there’s just no driver.
Waymo has a roughly 700-vehicle fleet, operating across San Francisco, Phoenix and Los Angeles. Its fully autonomous vehicles are currently available in San Fransisco and the Metro Phoenix area, with service rolling out gradually to areas of Los Angeles, Austin and Atlanta.
To request a ride, you simply use the Waymo One app.
The vehicles have traveled over 22 million miles so far and have been rigorously tested through real-life and simulated scenarios to improve their functionality in crashes or other accidents, for example. According to Waymo’s peer-reviewed safety data, Waymo’s cars are involved in 84% fewer crashes where an airbag is deployed and 73% fewer crashes with an injury.
What’s more, compared to current ride-hailing options like Uber and Lyft, you don’t have to worry about your personal safety during an encounter with a driver, since there isn’t one!
Also, no driver means no tipping. So, the rides often end up being cheaper, too.
My InvestorPlace colleague, Luke Lango, even tested out a Waymo ride for himself. You can check out the video here to see how it works.
Now, tomorrow could mark a watershed moment for autonomous vehicles. That’s when Tesla is expected to announce its entry into the AV race…
AVs Are on the Move
Tomorrow at 8 p.m. Eastern, Elon Musk is set to reveal Tesla’s “Robotaxi,” a fully automated car with no mirrors, no pedals and no steering wheels. It’s going to fully rely on AI-powered sensors to find its way around.
It might sound crazy. But the idea of using a cell phone to access the internet was crazy once, too. Then, the iPhone came along. And now, 153 million people use an iPhone in just the U.S. alone. Worldwide, that number rockets up to a whopping 1.46 billion.
Luke believes autonomous vehicles are on the verge of having their “iPhone moment.”
In other words, he says the self-driving revolution is here and is set to go mainstream. And he talks all about why this trend will be unstoppable in a recent video presentation.
More importantly, he’s found a sub-$3 stock that he believes could be the key to unlocking Musk’s greatest promise – a land of fully autonomous cars.
To learn more about the Robotaxi, how it could further revolutionize driverless cars and how you can profit from it, click here to watch the replay.
Sincerely,
Louis Navellier
Editor, Market360
