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The world is embracing the electrical automobile revolution, however UBS says autonomous driving is about to outshine even EVs within the auto house. “We count on autonomous driving to be the following technological revolution within the auto house, arguably a extra important megatrend than electrification with a extra profound impression on the business,” UBS analysts, led by Paul Gong, wrote on Nov. 17. The funding financial institution mentioned China has been a world chief in EV adoption, and now has the potential to additionally lead with regards to self-driving vehicles. It cited China’s massive home market, excessive acceptance of autonomous driving, environment friendly provide chains, and supportive infrastructure amongst different components. UBS estimated that China’s potential autonomous driving-related market might attain $100 billion by 2030. As such, the Swiss financial institution mentioned it sees “important” funding alternatives within the autonomous driving house. It added that shares within the sector had pulled again lately, making it a “good time to revisit this theme amid comparatively undemanding valuations.” Inventory picks Tesla is amongst UBS’ high picks to play the autonomous driving theme. The financial institution mentioned Tesla’s key belongings embody its “strongest” autonomous automobile and machine studying know-how, in addition to its absolutely linked fleet — the most important amongst its friends. The financial institution additionally likes Mercedes for its sturdy luxurious focus and “comparatively sturdy” autonomous automobile expertise. Mercedes has a partnership with semiconductor big Nvidia to develop the following era of the German automaker’s in-vehicle computing methods. Mercedes is about to begin deploying the brand new expertise throughout its fleet in 2024. Chinese language automaker Li Auto is one other decide, for its “revolutionary options” that positions the corporate “among the many business’s entrance runners” in human-vehicle interplay and autonomous driving, mentioned UBS. Xpeng additionally made the listing, with the financial institution describing the automaker as one of many “main autonomous driving gamers in China.” Additional down the availability chain, UBS additionally sees different engaging alternatives, reminiscent of Chinese language optical lenses agency Sunny Optical and Web agency Baidu . In July, Baidu unveiled the Apollo RT6 — the sixth era of its self-driving electrical automotive constructed for ride-hailing. The automobile is about to begin working on China’s roads within the second half of 2023 beneath Baidu’s self-driving robotaxi enterprise.
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