5 Stocks Driving The Autonomous Vehicles Trend

The rise of autonomous vehicles (AVs) isn’t just a tech trend; it’s a shift that could transform industries and impact your portfolio. Industries like transportation, logistics, and personal mobility are all going through extraordinary changes that will likely lead to new revenue streams, efficiency gains, and cost savings—and this will all impact stock performance now and into the future. According to McKinsey, by 2035, autonomous driving could create $300 billion to $400 billion in revenue. In Fall 2024, Tesla unveiled the Robovan and Cybercab: self-driving vehicles that may truly revolutionize urban transport.

There are plenty of ways to invest in companies that are at the forefront of this innovative shift towards self-driving cars.

5 Stocks With The Highest Exposure To Autonomous Vehicle Trends

Name	Ticker	Last price   The last publicly stated price for one share of an investment, updated every approximately 20 minutes during market hours (usually business days between 9:30 a.m. and 4:00 p.m. ET).	Today   This is how much an investment's price has changed over the last day of active trading. For example, if an investment's price was $10 yesterday, and today it rose to $11, you'd see a 1 day change of 10%.	YTD   This is the performance of the investments since the start of the year, updated approximately every 20 minutes during market hours (usually business days between 9:30 a.m. and 4:00 p.m. ET).
Alphabet Inc. (Class A Stock)	GOOGL	$318.77	-0.37%	68.83% (1Y)
Autonomous & Electric Vehicles ETF	DRIV	$29.40	1.43%	30.03% (1Y)
NVIDIA	NVDA	$177.83	-1.35%	28.6% (1Y)
Tesla	TSLA	$430.11	0.83%	13.4% (1Y)
Aurora Innovation, Inc.	AUR	$4.22	4.07%	-30.82% (1Y)

Alphabet Inc. (Class A Stock)

YTD:

68.83% (1Y)

Last price: $318.77

Autonomous & Electric Vehicles ETF

YTD:

30.03% (1Y)

Last price: $29.40

NVIDIA

YTD:

28.6% (1Y)

Last price: $177.83

Tesla

YTD:

13.4% (1Y)

Last price: $430.11

Aurora Innovation, Inc.

YTD:

-30.82% (1Y)

Last price: $4.22

How to Invest in Autonomous Vehicles

Investing in autonomous vehicles involves understanding the key players and technologies driving this transformative trend. The stocks mentioned above represent companies leading in various aspects of AV technology, offering diverse investment opportunities. Here’s a brief overview of how each company highlighted above participates in the AV trend:

Tesla (TSLA) 

Tesla is at the forefront of the development and commercialization of self-driving technology. The company's Autopilot feature and Full Self-Driving (FSD) capabilities are pioneering efforts in making AVs accessible to consumers. Tesla also integrates AI and powerful sensors to enhance vehicle autonomy, while continuously updating its technology through over-the-air software improvements.

Alphabet (GOOGL) 

Alphabet's Waymo is a leader in autonomous driving technology, having logged millions of miles in testing. As a subsidiary of Alphabet, Waymo focuses on both self-driving ride-hailing services and AV hardware and software. This positions Alphabet as a key participant in the evolution of urban transportation and logistics solutions.

NVIDIA (NVDA) 

NVIDIA provides the robust processing power needed for autonomous vehicles through its advanced computing platforms. Its hardware and software solutions, such as the NVIDIA DRIVE platform, facilitate real-time AI computing critical for AV functionality, enabling complex decision-making processes that make safe and efficient self-driving possible.

Aurora Innovation (AUR) 

Aurora Innovation specializes in developing the Aurora Driver—an integrated system designed to provide driverless technology services across various applications, including freight and passenger transport. Aurora’s partnerships with major automotive manufacturers aim to accelerate the deployment of AV technology on a broad scale.

Global X Autonomous & Electric Vehicles ETF (DRIV) 

DRIV is an ETF that provides investors with a diversified portfolio of companies involved in the development and adoption of AVs and electric vehicles. It includes exposure to vehicle manufacturers, hardware and software developers, and tech firms involved in the AV ecosystem, offering a holistic investment approach to the AV revolution.

By investing in these leading companies, investors can gain exposure to the cutting-edge technological advancements shaping the future of autonomous transportation.