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The world is embracing the electrical car revolution, however UBS says autonomous driving is ready to outshine even EVs within the auto house. “We anticipate autonomous driving to be the following technological revolution within the auto house, arguably a extra vital megatrend than electrification with a extra profound influence on the business,” UBS analysts, led by Paul Gong, wrote on Nov. 17. The funding financial institution stated 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 elements. UBS estimated that China’s potential autonomous driving-related market may attain $100 billion by 2030. As such, the Swiss financial institution stated it sees “vital” funding alternatives within the autonomous driving house. It added that shares within the sector had pulled again just 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 stated Tesla’s key property embrace its “strongest” autonomous car and machine studying know-how, in addition to its totally related fleet — the most important amongst its friends. The financial institution additionally likes Mercedes for its sturdy luxurious focus and “comparatively sturdy” autonomous car know-how. Mercedes has a partnership with semiconductor large Nvidia to develop the following era of the German automaker’s in-vehicle computing programs. Mercedes is ready to begin deploying the brand new know-how throughout its fleet in 2024. Chinese language automaker Li Auto is one other choose, for its “revolutionary options” that positions the corporate “among the many business’s entrance runners” in human-vehicle interplay and autonomous driving, stated UBS. Xpeng additionally made the checklist, with the financial institution describing the automaker as one of many “main autonomous driving gamers in China.” Additional down the provision chain, UBS additionally sees different enticing alternatives, akin to 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 car is ready to begin working on China’s roads within the second half of 2023 beneath Baidu’s self-driving robotaxi enterprise.
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