What is Level 4 autonomous driving technology?

Level 4 autonomous driving refers to vehicles that can operate themselves without human intervention within specific areas or conditions. Unlike lower levels that require driver supervision, Level 4 vehicles can handle most driving situations independently, including emergency maneuvers. However, they may still be limited to certain geographic areas, weather conditions, or road types. This is the technology being deployed in Uber's robotaxi fleet partnership with Lucid and Nuro.

What is LiDAR and why is it important for self-driving cars?

LiDAR (Light Detection and Ranging) is a remote sensing technology that uses laser pulses to measure distances and create detailed 3D maps of surroundings. In autonomous vehicles, LiDAR sensors constantly scan the environment, detecting objects, pedestrians, and road features with high precision. Unlike cameras alone, LiDAR works well in low light and can accurately determine distances. Many experts consider it essential for safe autonomous driving, which is why several stocks in this group (like LAZR and INVZ) specialize in developing advanced LiDAR systems.

What's the difference between investing in car manufacturers versus technology enablers?

Investing in car manufacturers (like traditional automakers developing self-driving features) means betting on which company will win market share in the autonomous vehicle space. In contrast, investing in technology enablers (the focus of this stock group) means backing the companies that provide essential components used by many or all manufacturers. This "picks and shovels" approach potentially offers broader exposure to the autonomous vehicle trend regardless of which car brand ultimately dominates, since most self-driving vehicles will need similar core technologies like sensors, processors, and safety systems.

What are robotaxis and why are they significant?

Robotaxis are self-driving taxis that operate without human drivers. They represent one of the first large-scale commercial applications of autonomous vehicle technology. Uber's commitment to deploy 20,000 autonomous EVs is significant because it moves robotaxis from small pilot programs to mass commercial deployment. This signals confidence in the technology's reliability and economics. For investors, robotaxis are important because they could dramatically change transportation economics and create sustained demand for the specialized technology components needed in each vehicle.

Why does each autonomous vehicle need "continuous hardware upgrades"?

Autonomous vehicles require regular hardware upgrades for several reasons. First, sensing and computing technology is rapidly improving, with more powerful processors and higher-resolution sensors offering better safety and capabilities. Second, as autonomous systems gather more real-world data, they often need expanded computing resources to support more sophisticated AI models. Finally, fleet operators like Uber typically upgrade components to reduce costs, improve reliability, and add new features. This creates recurring revenue opportunities for the technology suppliers in this stock group, beyond just the initial vehicle production.

17 handpicked stocks

Autonomous Vehicle Technology Enablers

This carefully selected group of stocks represents the companies building the technological backbone of self-driving vehicles. Handpicked by our professional analysts, these stocks capture the suppliers of essential components that will power the robotaxi revolution.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 20