Self-driving cars will shape the future of mobility. But this technology will do more than just change the way we travel.
Autonomous vehicles will lead to massive productivity growth for both consumers and businesses.
Estimates suggest self-driving technology will enable up to $2.3 trillion in annual economic activity in the U.S. alone.
Self-driving cars are expected to free up an average of eight hours per week that Americans currently spend driving.
With 230 million drivers in the U.S., this will enable productivity on a massive scale.
And that will send stocks soaring.
Businesses Will Benefit From Self-Driving Cars
High-paying jobs for software engineers and technicians will be created to meet self-driving car demand.
Higher incomes will lead to an increase in consumer spending and investment, strengthening the U.S. economy.
Businesses will see their profitability and efficiency skyrocket.
Fully autonomous commercial vehicles will cut vehicle operating costs by up to 50%. These savings will send company earnings higher, and their stock prices will rise.
Autonomous vehicle registrations are expected to increase 120 times by the end of the decade. This would put self-driving vehicles at 12% of vehicle registrations.
The Transition Has Begun
In order to reach this point, we will witness battery technology undergo a massive upgrade.
Self-driving cars require more advanced battery technology. The vehicles consume more energy, with half being used by self-driving software alone.
With current battery technology, vehicle range would be limited and batteries would decay faster. These would serve as obstacles for scaling the technology.
So, the transition to a fully autonomous vehicle fleet has begun but will take decades.
Behind the scenes, a group of small companies will benefit and could hand investors huge gains.
On Monday, Ian King will add an electric vehicle battery stock to his New Era Fortunes portfolio.
Now is a great time to join New Era Fortunes and get ready for Ian’s stock pick. Click here to learn more.
Analyst, Automatic Fortunes