Thematic Spotlight: Autonomous Vehicles Drive Into The Spotlight

Autonomous vehicles (AV) have been a dominant theme in the month of October. Earlier in the month, Tesla hosted its much anticipated “We, Robot” event in California where it revealed the Cybercab and Robovan.1 While the event was ultimately a disappointment for investors due to an overall lack-off details, the futuristic function appeared to kick-off a wave of market developments.

First – Tesla’s chief AV rival, Waymo (also known as Alphabet Inc.’s autonomous driving unit), secured US$5.6 billion of funding from investors in its largest financing round ever.2 The mammoth capital injection, led by Google parent Alphabet Inc., sported numerous big-name participants such as Fidelity Investments, T.Rowe Price Group, and Tiger Global. While Waymo’s valuation was not revealed to the public, market reactions were initially positive with Alphabet’s shares rising 1.5%.3 Analysts also predict the cash secured from this round of funding will be sufficient to carry Waymo all the way to its eventual public listing.4

Talking of public listings, Chinese self-driving company WeRide, made its Nasdaq debut where it secured US$440.5 million from IPO investors.5 While the IPO was priced at the bottom of its price range at US$15.50, the total shares on offer was upsized by 20% to a total of 7.74 million shares thanks to a wave of private investors. WeRide also wasn’t the only Chinese AV firm looking to list. Earlier this month, Pony AI, another big name in Chinese AV tech, also filed for a US IPO.6

All three companies, Waymo, WeRide, and Pony AI have operating fleets which currently offer real robo-taxi services across multiple countries and cities. Waymo says it provides more than 100,000 rides each week and that its AV model had logged more than 25 million miles of data as of August.7 WeRide, which has been in operation since 2017, has tested and deployed robotaxi fleets across 30 cities in seven countries.8 And Pony AI claims it has accumulated more than 13 million miles of autonomous driving globally and fulfilled close to 200,000 robotaxi orders.9 With so many companies competing and pushing the package, perhaps a future of driverless cities and robo-controlled roads is closer than we think.

Access Artificial Intelligence with GXAI.

Looking for more ETF Express? Check out this week’s Market Moves and Commodity Calls.

 

Forecasts are not guaranteed and undue reliance should not be placed on them. This information is based on views held by Global X as at 29/10/2024. Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit nor guarantee against a loss.

Brokerage commissions will reduce returns.

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalised investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.