Core Viewpoint - Rivian Automotive's stock is currently undervalued, presenting a potential investment opportunity as the company prepares for significant growth in sales and profitability in the coming years [1][2]. Group 1: Sales Growth Potential - Rivian is expected to experience major sales growth in 2026, driven by its aggressive push into self-driving technology and the introduction of in-house silicon chips and a next-gen computer [3][4]. - The imminent launch of Rivian's new model, the R2, priced at $45,000, is anticipated to attract a broader customer base, tapping into tens of millions of potential buyers who prefer vehicles under $50,000 [5][6]. - Sales growth is projected to jump to 27% in 2026, compared to a modest 8% growth rate in 2025 [6]. Group 2: Profitability Outlook - Rivian's stock trades at a significant discount compared to peers like Tesla, but this valuation gap may narrow as the company approaches profitability, particularly with the R2 model's sales expected to ramp up [7]. - The CEO's compensation structure includes bonuses tied to achieving profitability, which could be realized as the company scales up production and sales of the R2 [7].

Core Insights - Rivian Automotive Inc.'s upcoming R2 crossover SUV has been spotted testing in Alaska, indicating progress in its development [1][2] Group 1: Vehicle Testing - The R2 SUV was seen at a Supercharger station in Fairbanks, Alaska, suggesting it is undergoing cold-weather testing to assess its performance in sub-zero conditions [2][3] Group 2: Technological Advancements - Rivian's self-driving technology, which includes a LiDAR and camera-based approach, will be featured in the R2 models, potentially enhancing sales [4] - The company plans to introduce an Autonomy+ subscription service, available for a one-time payment of $2,500 or a monthly fee of $49.99, aimed at boosting growth [5] Group 3: Market Performance - Rivian's stock price increased by 7.91% to $14.81 during regular trading and further rose by 1.09% to $14.97 in pre-market trading [6]

Alphabet's self-driving car unit Waymo on Monday said it raised a $16 billion funding round that values the company at $126 billion "post-money."The new valuation is more than double from Waymo's last funding. That was a series C round of $5.6 billion at a $45 billion valuation, which closed in October 2024. Alphabet committed $5 billion in a multiyear investment to Waymo at the time."​​This milestone is built on a foundation of safety that is now statistically superior to human driving," Waymo co-CEOs Teke ...

Core Viewpoint - The rise of self-driving cars is expected to lead to significant job displacement in the driving sector, while also creating new economic opportunities in other areas such as productivity and logistics. Job Displacement - Approximately 1 million people in Britain are employed as drivers, representing around 3% of the workforce, with significant job losses anticipated due to the introduction of driverless vehicles [2][6] - Uber's CEO, Dara Khosrowshahi, acknowledges that job displacement will occur, particularly affecting driving instructors and various driving professions [1][4] Economic Impact - Self-driving cars could enhance productivity by allowing commuters to use travel time for work or leisure activities, potentially benefiting sectors like streaming services and online shopping [7][8] - The logistics sector may see a transformation, with automated heavy goods vehicles (HGVs) projected to create a market worth £3.5 billion annually by 2040 [13] Changes in Property Demand - The shift to driverless cars may alter property demand, moving it away from traditional rail station locations to more evenly distributed areas across commuter belts [9] - Historical trends during the pandemic indicate that remote working can lead to increased demand for larger homes further from city centers, which may be replicated with the rise of autonomous vehicles [10] Public Transport and Congestion - The introduction of driverless cars could lead to a decline in public transport usage, as seen during the pandemic when rail journeys dropped significantly [11] - While driverless vehicles may reduce the need for parking in urban areas, they could also exacerbate road congestion if not managed properly [12] Logistics and Efficiency - Self-driving lorries are expected to operate in convoys, improving fuel efficiency by up to 20% and reducing logistics costs significantly [14][15] - The potential for small delivery robots to replace traditional delivery methods could disrupt the current delivery industry, which has seen rapid job growth [16] Skepticism and Challenges - Concerns exist regarding the economic viability of autonomous vehicle programs, with some industry experts likening them to a "dotcom bubble" due to high operational losses [18] - Despite the potential benefits, practical challenges remain, such as the need for vehicle maintenance and the complexities of urban driving environments [19]

A Waymo self-driving vehicle hit a child pedestrian near an elementary school in Santa Monica, California, on Friday. Waymo addressed the incident in a Wednesday blog post, noting it "voluntarily contacted the National Highway Traffic Safety Administration (NHTSA) that same day."  NHTSA told Waymo it plans to investigate the incident, according to the blog post. Waymo added, "we will cooperate fully with them throughout the process."  Alphabet-owned Waymo, which operates a robotaxi service around the Los An ...

Core Viewpoint - Tesla has agreed to invest approximately $2 billion in Elon Musk's AI startup xAI, enhancing the relationship between the two companies as Tesla positions itself as a leader in autonomy and robotics [1][3]. Financial Performance - Tesla reported revenue of $24.9 billion for the quarter ending December 31, a decrease of 3% year-over-year, but surpassing analysts' expectations of $24.79 billion [3]. - Profit fell significantly by 61% to $840 million during the same period [3]. Market Expectations - Wall Street anticipates Tesla will deliver 1.77 million units in 2026, reflecting an 8.2% increase according to Visible Alpha data [4]. - The vehicle business is facing challenges as competitors introduce newer models at lower prices, and the expiration of a US tax incentive for electric vehicles has impacted sales [4]. Strategic Focus - Investors are increasingly interested in Musk's initiatives in self-driving technology and robotics, seeking evidence that the transition from promise to product is occurring [5][7]. - Tesla is utilizing lower-priced "Standard" versions of its Model 3 and Model Y to attract price-sensitive consumers, a strategy expected to drive growth in 2026 deliveries despite potential margin pressures [5][6].

Core Viewpoint - The National Transportation Safety Board (NTSB) is initiating an investigation into Waymo due to incidents where its robotaxis illegally passed stopped school buses in Austin, Texas [1] Group 1 - The investigation by the NTSB highlights regulatory concerns regarding the safety and compliance of self-driving technology in urban environments [1] - Waymo's actions raise questions about the operational protocols and safety measures in place for autonomous vehicles, particularly in relation to school zones [1]

Core Insights - The robotaxi market is expected to grow significantly, with Tesla projecting a market capitalization of $3 trillion by the end of 2026, while Waymo aims for 1 million fully autonomous rides weekly within the same timeframe [1][2] Industry Overview - The global robotaxi fleet is projected to reach 934,000 vehicles by 2035, with a market value of approximately $105 billion, highlighting North America's leadership in technology innovation and regulatory support, contrasted with China's rapid scaling and government-backed infrastructure [2][3] Regulatory Environment - Regulatory challenges in the U.S. include a complex mix of federal, state, and local laws, along with ongoing safety investigations, which could impact growth and consumer acceptance of robotaxis [3] Company Developments - Tesla has initiated its robotaxi service in the San Francisco Bay Area and Austin, Texas, with plans to produce a two-seater Cybercab by April, potentially offering rides at $0.40 per mile [4][5] - Waymo is currently leading in the market, operating driverless robotaxis in multiple cities and planning to expand into 26 additional markets by 2026 [5] - Zoox has received regulatory exemptions for its unique robotaxi design and is providing free driverless rides in San Francisco and Las Vegas [6]

Core Viewpoint - Ford is developing autonomous driving capabilities, including eyes-off driving, expected to be ready for public roads by 2028, and believes in-house development of self-driving technology will be more cost-effective than outsourcing to suppliers [1]. Group 1: Cost Efficiency and In-House Development - Ford claims that owning the technology for its driver assistance systems allows it to deliver significantly more capability at a 30% lower cost compared to purchasing from outside suppliers [2]. - The company emphasizes that in-house development provides greater oversight on sensor utilization and integration into vehicles, enhancing performance and cost-effectiveness [6]. - By reducing the number of separate computer modules in vehicles to a single unit, Ford aims to achieve smaller, cheaper, and higher-performing systems [7][8]. Group 2: Competitive Landscape and Partnerships - Ford acknowledges the presence of competitors in the ADAS licensing market, such as Nvidia, Waymo, and Wayve, and previously partnered with Mobileye to develop its ADAS software, BlueCruise [8]. - Leading EV companies like Tesla and Rivian have also adopted in-house approaches for self-driving technology, with Rivian recently designing its own silicon chip for autonomous driving [9]. - However, Ford has no plans to develop its own chips and prefers to work with existing suppliers, focusing on volume rather than custom silicon [10].

Key Points Its Waymo subsidiary might get quite a boost soon. U.S. lawmakers will soon hear proposals on how to increase autonomous vehicle deployments. 10 stocks we like better than Alphabet › Alphabet's (NASDAQ: GOOG)(NASDAQ: GOOGL) Waymo subsidiary is a leader in self-driving technology. Given that, it was entirely reasonable for investors to trade up Alphabet stock on news that top American politicians would hold hearings on advancing such technology. Both of the tech giant's publicly traded sha ...