Autonomous vehicles could redefine the future of mobility

The autonomous vehicle (AV) industry is continuously gaining much hype around the world as automakers are racing to get the first fully autonomous vehicle on the roads. However, hindrances in trial programs and regulatory compliances are delaying the arrival of self-driving cars in the market. An autonomous car is a vehicle capable of functioning without any human involvement. Such self-driving cars can sense any environment at any given time through sensors, actuators, complex algorithms and software execution. These vehicles are also advantageous for the environment as well as reducing vehicle accidents.

With the relentless development and advancement of technology, consumer interest in autonomous vehicles has grown exponentially. According to reports, the global market of autonomous vehicles is expected to reach around US$556.6 billion by 2026.

Here’s a look at the 6 best autonomous driving stocks to buy in 2021.

Tesla

Automaker giant Tesla has witnessed tremendous growth over the last few years. The company has undertaken a massive expansion of manufacturing. It has garnered many headlines in the autonomous driving market with its electric-fuelled driverless cars. During Q3 2020, Tesla reported a net income of US$331 million on revenue of US$8.77 billion.

Amazon

Amazon increasingly makes its way to autonomous vehicles. Recently, its self-driving company, Zoox Inc. divulged its first self-driving robotaxi, putting an end to its long-awaited quest for driverless car services. In its recent quarter fiscal, Amazon reported a 37 percent increase in its revenue year-over-year. The company also saw a 192 percent jump in earnings per share over the same period.

Veoneer

Veoneer, a vehicle safety provider, produces safety equipment and focuses on advanced driving assistance systems (ADAS) in the autonomous vehicle space. The company witnesses a compound annual growth rate of 12 percent between 2019 and 2025 in its total addressable market. The company also produces LIDAR systems, radar, crash sensors, vehicle restraint systems and many other components.

Baidu

Making its effort in the self-driving cars market, Baidu, known as Google of China, in partnership with Chinese state-owned carmaker, FAW Group, announced to development of the Hongqi EV AI-powered taxi. It is the first mass-produced robotaxi in China and still in the testing phase in multiple cities, including Beijing and Guangzhou. Conversely, Baidu's Apollo Robotaxi and Apollo Minibus operate with level 4 autonomy and a developer platform among other things.

General Motors

General Motors stock this year saw an all-time high growth. It is now facing its first big test since Wall Street began to gain confidence in its EV progress. In January this year, autonomous car startup Cruise, majority-owned by General Motors, introduced its first vehicle designed to be driverless. Since 2018, GM has operated a limited autonomous vehicle ride-hailing fleet in Phoenix. As of December 21, the company had a US$58 billion market cap, compared to US$628 billion for Tesla, despite having roughly four times the sales in the latest quarter.

Alphabet

Alphabet is a parent company of Google. Its autonomous driving subsidiary company Waymo operates a commercial self-driving taxi service. The Waymo project began back in 2009. Waymo autonomous vehicle business is significantly playing a key role in Google stock. In the face of the COVID-19 pandemic, the performance of Google stock lagged Apple, Amazon, and Facebook in 2020, but 2021 is predicted to be a different year for the company.