3 Top Autonomous Vehicle Stocks To Watch Right Now
Autonomous vehicle stocks have been in the limelight recently. Following up on gains last week, top autonomous vehicle stocks started the week on a strong note in the stock market. We know 2020 has been the year for the electric vehicle (EV) industry. But as 2020 draws to a close, can 2021 be the year of autonomous vehicle companies? Investors know that autonomous driving promises an exciting new paradigm in transportation. Apart from the potential improvement in road safety, it frees up the attention of those behind the wheel. Therefore, it is not surprising why investors have been looking for top autonomous vehicle stocks to buy.
Autonomous Driving Is Only In The Beginning Stages
To many investors, this emerging industry is one of a handful of tech industries with a long growth runway ahead. If you have been following the auto space, you would know the competition among tech companies to introduce the first autonomous vehicle has been vigorous. While autonomous driving alone is a major milestone, it isn’t the end goal. According to analysts, the ultimate goal is to incorporate this new technology to power autonomous driving businesses.
Tesla (TSLA Stock Report) and Uber (UBER Stock Report) have been loud with their intent to develop self-driving technology. However, the latter had announced on December 7 that it is selling its autonomous driving unit to Aurora Innovations. Even though autonomous driving vehicles were once believed to be the key to Uber’s profitability, it has been a costly affair. But not to worry, Uber will own about a quarter of Aurora. That could potentially lead to strategic opportunities in the future should Aurora be successful.
If you are reading up until this point, it’s safe to assume that you do not want to miss the next big thing in the stock market today. Veteran investors and millennials alike appear to see the next generation technologies in the auto industry as a major long-term investment opportunity. While this self-driving may still be at a nascent stage, some have already made tremendous strides. That said, do you have these autonomous vehicle stocks on your watchlist this week?
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Top Autonomous Vehicle Stocks To Watch Right Now
- Luminar Technologies (LAZR Stock Report)
- Velodyne Lidar (VLDR Stock Report)
- Collective Growth (CGRO Stock Report)
Top Autonomous Vehicle Stocks To Watch: Luminar Technologies
First up, Luminar Technologies has been stealing headlines since its public debut on December 3. Its laser technology for autonomous driving makes and its monstrous rally over the past few trading sessions easily tops the list of best stocks to buy. Like the newly listed EV makers, Luminar Technologies went public Thursday through a special purpose acquisition company (SPAC) by the name of Gores Metropoulos. For starters, the company has partnerships with Volvo and Daimler. That could bring Luminar’s sensors into autonomous vehicles and semi-trucks beginning 2022.
Now, Luminar has developed lidar technology to power autonomous vehicles. It is not surprising that investors are getting all excited with this new entrant on December 3. Apart from Luminar, many EV makers and tech titans are also working on autonomous driving. The reason? It could be a highly lucrative business. And nobody is clearly winning the race yet. “I do believe the trucking and logistics industry is going to be one of the largest and also one of the most overlooked opportunities in this larger industry,” Luminar CEO Austin Russell said. “It’s nearly a trillion dollars a year in the U.S. alone…and a huge portion of it is up for grabs for whoever solves this problem.”
Luminar’s stock made another slam dunk after soaring more than 30% on Monday, and is currently making big moves in the pre-market trading. Shareholders who invested in the SPAC certainly made handsome gains. But that is also a testament to investors’ interest in autonomous driving technology. With all these in mind, is LAZR stock the best bet on the rise of autonomous driving?
Top Autonomous Vehicle Stocks To Watch: Velodyne Lidar
Next up, as the name suggests, Velodyne Lidar is another company working on Lidar technologies. However, unlike other stocks on this list, the company does not have any specific news that could explain its surge in stock price. You could say the company is simply benefiting from investors’ attention on Lidar technologies and autonomous vehicles once again.
Recall that Velodyne Lidar closed its SPAC merger with Graf Industrial at the end of September. Since then, VLDR stock had seen some weakness in its share price, before climbing back up more recently. Admittedly, that’s not too bad for a stock that has only been in the market for a few months. But it pales in comparison with the gains that LAZR stock is seeing.
Since the autonomous vehicle market is picking up steam, it doesn’t take an expert to know that it will benefit the Lidar maker. Besides, Velodyne differentiates itself from Luminar in terms of its approach. Unlike Luminar, which works to make its sensors very affordable, Velodyne Lidar focuses on the higher-cost prototype market. Many believe it will succeed as more startups join the competitive field and look for sensors to guide their prototype vehicles. As the rising tide appears to be lifting all boats, would you be adding VLDR stock to your watchlist?
Top Autonomous Vehicle Stocks To Watch: Collective Growth
Collective Growth is another blank check company making waves this week. This came after rumors that Innoviz Technologies, an Israeli lidar company, is looking to merge with CGRO. CGRO stock jumped more than 35% since the news went out last week. But the question here is, can the rally continue? Personally, it seems to me this is a riskier bet than Luminar and Velodyne.
Here’s why. For now investors should note that the deal between Innoviz Technologies and Collective Growth have yet to finalize. Not to mention that Innoviz is still working to get its sensors and perception software into the market, with debuts starting in 2021. That means there is a lot on the line.
Considering that Innoviz is still an early-stage company, CGRO stock will likely see some volatility ahead. That’s assuming if the two parties successfully close the deal. But what if it doesn’t? Usually, investors are not encouraged to invest in companies based on rumors of a potential merger. But that could just be me. Maybe it could turn out to be a lucrative investment if the deal goes through. So is CGRO stock one of the best autonomous vehicle stocks to buy right now? You be the judge.