Big News in Self-Driving Vehicles Gives Us Clues on What Could Come Next
Two massive companies have announced a partnership to bring the future of driving to the present.
Big news out of the automotive industry broke this week as Microsoft Corporation (MSFT) announced a partnership with General Motors Company (GM) and Cruise LLC – a GM-owned company that is developing self-driving vehicles.
Microsoft will be providing key technology – including the use of its Azure cloud computing platform – as well as an undisclosed equity investment.
The partnership could be a huge boon for autonomous vehicles – an industry that’s been slowly developing but has yet to bring any products to market at scale. It will also put Cruise LLC in the limelight as one of the top self-driving vehicle developers, and likely speed up the timeline for a wider implementation of autonomous vehicles.
So, what’s the best investment for anyone looking to get a piece of the future of automobiles?
Let’s take a look…
Where’s the money?
According to a report from Allied Market Research, the global autonomous vehicle industry is expected to grow from its $54 billion valuation in 2019 to more than $556 billion by 2026.
That kind of growth potential is enough to make any investor salivate. But picking the right investment in an industry that’s been slow to develop and marred by several high-profile accidents and setbacks will be tricky.
Investing in this space is made even more difficult by the sheer number of potential automakers that are looking to break into the space. That leads me to believe that this won’t be the last high-profile partnership – or even outright acquisition – that we’ll see as the self-driving vehicle race heats up.
But there’s one possibility I’m going to be keeping a sharp eye on…
How do I get some?
As we’ve already discussed, Apple is serious about breaking into the automobile industry and may be looking to develop its own electric vehicle.
But to build its own automaker arm from the ground up would be a massive undertaking – one Apple likely isn’t prepared to make without exhausting other options first.
I don’t believe Apple wants to get fully into the car business, but they need an automaker to partner with or buy in order to put their technology in vehicles.
That’s why I think Ford Motor Company (F) would be an excellent target for Apple. Ford’s stock has been relatively flat for years, but a partnership with an immensely popular company with a loyal customer base like Apple would give a huge boost to Ford – while providing Apple with the established vehicle manufacturer it needs.
I’m not saying it’s definitely going to happen, but if you were looking to put some speculative capital to work, Ford may be the next company to make a splash in the automotive world. And with vehicle demand starting to heat back up as we round the corner on COVID-19, the timing may be just right.
These Opportunities Have Me Intrigued…
After all, self-driving vehicles have been just a fantasy for such a long time… to watch it come to life is pretty incredible.
But like I mentioned above, despite the profit potential, the industry hasn’t established a clear top dog, so in the meantime, I want to look for plays that will provide much faster returns…
And I can’t think of a better way to do that than with my friend and colleague Tom Gentile’s Money Hour.
His newest trading strategy is designed to get you in and out of positions in 60 minutes or less…
In fact, yesterday, he and his readers had the opportunity to bank a quick 37.5% win in just 10 minutes!
Check out what might be Tom’s most effective trading strategy yet, right here.
In the Spotlight: A rare sighting…
Alibaba Group Holding Limited (BABA) stock soared on Wednesday after co-founder Jack Ma made a public appearance after several weeks of laying low.
Ma’s disappearing act followed new crackdowns by the Chinese government on potential monopolistic practices by BABA and others.
While I still love this stock in the long run, BABA still has a number of hurdles to clear – including questions surrounding the valuation and IPO of its financial platform Ant Group.
This is a stock that will be near the top of my watchlist going forward, and I’ll be sure to provide you with further updates and analysis as more information becomes available. Stay tuned.