3 Stocks To Consider Buying As Self-Driving Vehicles Take Off

Industry Overview - The driverless vehicle market is projected to experience significant growth, with total revenues expected to rise from $87.2 billion in 2024 to $991.7 billion by 2033, reflecting a compound annual growth rate (CAGR) of 4.7% [1] - The autonomous vehicle sector is being propelled by factors such as public acceptance of AI systems, government regulations, environmental concerns, traffic congestion, technological advancements, and the demand for safety and efficiency [2] Market Segments - The self-driving robotaxi market is anticipated to grow from approximately $0.45 billion in 2024, with estimates suggesting a CAGR of 73% to 90% per year until 2030, indicating a substantial investment opportunity [4] - Regulatory challenges at the city level are seen as a significant barrier to the growth of autonomous taxis, with the potential for faster federal-level regulations to enhance market growth [5] Key Companies Tesla - Tesla has shown a year-to-date performance increase of 5.7%, with a notable 32% share return rate over the past three months [7] - The company has over 3 million vehicles on the road, with the potential for 4 million units to become robotaxis by the end of the year, leveraging advanced AI technology for data collection and operational efficiency [8] Uber - Uber has a year-to-date performance increase of 61.7% and is positioned favorably in the autonomous ride-share market, with 11.3 billion trips and $44 billion in revenue expected in 2024 [9][10] - The company has partnerships with Waymo and other AV operators, which may reduce compliance and labor costs, enhancing its competitive edge in the driverless ride-share market [10] Aurora Innovation - Aurora Innovation has a year-to-date performance decrease of 5.5% but is recognized for its advanced self-driving technology, particularly in the long-haul freight and driverless cab sectors [12][13] - Analysts view Aurora as a leader in the autonomous vehicle space, with buy ratings from multiple firms and a target price range of $12.00 to $15.00 per share [14]