What are robotaxis and why are they important for investors?

Robotaxis are self-driving taxis that operate without a human driver. They represent a major advancement in autonomous vehicle technology and could revolutionize transportation. For investors, robotaxis matter because they create an entirely new market with multiple revenue streams – from the vehicle manufacturers like Tesla to the many technology suppliers that make autonomous driving possible. As Tesla expands its robotaxi service, it validates the commercial potential of this technology and could accelerate adoption across the industry.

What is LiDAR technology and why is it included in this stock group?

LiDAR (Light Detection and Ranging) is a remote sensing technology that uses laser light to measure distances and create detailed 3D maps of surroundings. In autonomous vehicles, LiDAR helps the car "see" and understand its environment by creating precise, real-time 3D representations. Companies like LAZR, INVZ, and MVIS are included in this stock group because they develop the LiDAR systems that many consider essential for safe autonomous driving. While Tesla notably doesn't use LiDAR (preferring cameras), many other autonomous vehicle developers consider it a critical sensor technology.

What are ADAS systems and how do they relate to fully autonomous vehicles?

ADAS (Advanced Driver-Assistance Systems) are technologies that help drivers with certain aspects of driving, like automatic emergency braking, lane keeping, or adaptive cruise control. They represent the stepping stones to fully autonomous vehicles. Companies like MBLY (Mobileye) develop ADAS systems that are already in millions of vehicles today. The relationship between ADAS and full autonomy is important because: 1) The same sensors and computing technologies power both, 2) ADAS provides current revenue while full autonomy develops, and 3) The regulatory and consumer acceptance of ADAS features helps pave the way for eventual self-driving capabilities.

Why are semiconductor companies like NVDA and QCOM important for autonomous vehicles?

Semiconductor companies are crucial to autonomous vehicles because they provide the "brains" that process all the sensor data and make driving decisions. NVIDIA (NVDA) supplies powerful GPUs (graphics processing units) that handle the intensive AI computations needed for autonomous driving. Qualcomm (QCOM) provides specialized automotive processors and communications chips that enable vehicles to process information and connect to networks. Without these advanced semiconductors, autonomous vehicles simply couldn't function – they wouldn't be able to process the massive amounts of data from cameras, radar, and other sensors quickly enough to make safe driving decisions.

What does "Potential Profit %" mean in the stock data?

"Potential Profit %" represents analysts' estimates of how much a stock's price might increase over a specific time period, usually 12 months. It's calculated by comparing the current stock price to analysts' target prices. For example, if a stock currently trades at $100 and analysts have an average price target of $130, the potential profit would be 30%. Remember that this is just an estimate based on analysts' research and projections – actual performance may vary significantly, and stocks can lose value as well as gain it.

15 handpicked stocks

Tesla's Autonomous Ride-Hailing Expansion

This carefully selected group of stocks represents companies powering Tesla's ambitious robotaxi rollout in the Bay Area and Arizona. Professional analysts have identified these technology providers as essential to the autonomous driving supply chain, from semiconductors to sensors.

Han Tan | Market Analyst

Updated 2 days ago | Published at जुलाई 11