Overview of Robo Taxi Stock Opportunities

Nov 15, 2024

Lecture Notes: Robo Taxi Market Stocks

Introduction

  • Speaker: Host of "Ask Ale" series inquiring about the Robo Taxi market
  • Audience Question: From Tim, asking for stocks to watch in the Robo Taxi market due to the recent interest in Tesla.

Overview of Robo Taxi Market

  • Market predicted to be worth trillions long-term.
  • Autonomous driving will improve efficiency in transportation and logistics.
  • Key point: The market's development and regulatory environment will take time.

Top 5 Robo Taxi Stocks

1. Google (GOOGL)

  • Owns Waymo, a key player in autonomous driving.
  • Diversified business model (advertising, email, browser, etc.).
  • Waymo has seen a 10x increase in paid rides and raised $5 billion in funding.
  • Valuation remains attractive compared to the sector.

2. Tesla (TSLA)

  • Leader in autonomous driving technology.
  • Massive data collection advantage through its vehicles.
  • Shadow mode technology enhances algorithm training.
  • Upcoming launches in California and Texas.
  • Expected to have a significant impact on revenues and profits.

3. Baidu (BIDU)

  • Leader in Chinese market; owner of Apollo, a Robo Taxi service.
  • First service approved in China for Robo Taxi operations.
  • Inexpensive valuation but comes with political and structural risks.
  • Partnered with Tesla for mapping data in China.

4. Amazon (AMZN)

  • Zoox subsidiary creates autonomous vehicles from scratch.
  • Diversified business with robust financial backing.
  • Already piloting autonomous services in major US cities.

5. General Motors (GM)

  • Owns Cruise, which focuses on autonomous vehicles.
  • Strong market presence in trucks and EVs.
  • Cruise faced setbacks but shows potential in expanding.
  • Valuation is low, providing an opportunity for growth.

Honorable Mention

NVIDIA

  • Indirect play through autonomous driving software and chips.
  • Provides technology used in AI and autonomous systems.

Conclusion

  • The speaker encourages feedback and discussion about these picks.
  • Acknowledges various factors influencing the Robo Taxi market.

Note: The speaker emphasizes the importance of considering both current and future potential when investing in the Robo Taxi market.

Full transcript