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4 Best Autonomous Trucking and Vehicle Stocks with Stable Growth Prospects

best autonomous trucking and vehicle stocks

Global autonomous vehicle market has been valued to the tune of $76.13 billion in 2020, and should reach $2,161.79 billion by 2030. This means that the industry is expected to be compounded at ~40.1% from 2021 to 2030. Autonomous vehicle or a driverless vehicle has the capability to operate itself and execute necessary functions. Therefore, these vehicles don’t need any human intervention as these have ability to sense its surroundings. It mainly makes the use of artificial intelligence (AI) software, light detection & ranging (LiDAR), radio detection and ranging (RADAR), and cameras. All these are required to sense environment and navigate automatically by forming active 3D map of that particular environment. Factors including improvement in safety, reduction in traffic congestion, growth in connected infrastructure, and shift from ownership to mobility-as-a-service (MaaS) should support best autonomous trucking and vehicle stocks. 

Global autonomous vehicle market has been divided into level of automation, component, application, propulsion type, vehicle type, and region. Depending on level of automation, best autonomous trucking and vehicle companies are categorized into level 1, level 2, level 3, level 4, and level 5 automation. Introduction of autonomous vehicles resulted in several benefits to current road systems. Such vehicles have numerous advantages as compared to the conventional vehicles, such as improved safety, limited fuel use, and traffic congestion & emissions. 

With this in mind, let us now look at best autonomous trucking and vehicle stocks with stable growth prospects.

Top 4 autonomous trucking and vehicle stocks to buy now

  1. Baidu, Inc.
  2. Lyft, Inc.
  3. Ford Motor Company
  4. Aptiv PLC

1. Baidu, Inc.

Baidu, Inc. is Beijing, China-based artificial intelligence (AI) and internet company, which has taken major initiative to advance autonomous vehicles with the help of its Apollo program. It continues to test autonomous vehicles on public roads in China since 2018 by using Apollo open self-driving platform.

In 2Q23, Baidu Core accelerated revenue and profit growth as a result of solid performance of online marketing business and operating leverage. Generative AI and large language models continue to hold significant transformative power in several industries, providing significant market opportunity for the company. 

Total revenues of the company came in at RMB34.1 billion ($4.70 billion), exhibiting a rise of 15% year-over-year. Revenue from Baidu Core was RMB26.4 billion ($3.64 billion), rising 14% year-over-year and online marketing revenue was RMB19.6 billion ($2.71 billion), up by 15% year-over-year. Operating income of the company was RMB5.2 billion ($718 million). 

2. Lyft, Inc.

The company has been categorised as 2nd largest ride-sharing service provider in the US, connecting riders and drivers in Lyft app. 

Revenue of the company came at $1.021 billion, which was up by 3% year-over-year, exhibiting strong growth in rideshare rides, which were up 18% year-over-year. Net loss came in at $114.3 million as compared to $187.6 million in 1Q23 and $377.2 million in 2Q22. Net loss includes $116.6 million of stock-based compensation along with related payroll tax expenses.

The company expects that rideshare market continues to grow and it saw solid 2Q. It has strong ride momentum going into 3Q and at the 2H of the year. 

For 3Q23, the company expects revenue of ~$1.130 Bn – $1.150 Bn and adjusted EBITDA of between $75 million – $85 million, with adjusted EBITDA margin of ~7%. 

3. Ford Motor Company

The company manufactures automobiles under its Ford and Lincoln brands. It has released its 2Q23 results. The company was again categorised as America’s top-selling brand in the quarter, with net sales increasing over 11%, and for the first six months of 2023.

Worldwide, demand for the company’s fresh line-up of trucks, SUVs and commercial vans supported second-quarter revenue. Quarterly net income came in at $1.9 billion, which was nearly three times higher as compared to the year-ago period and 4% margin. Adjusted earnings before interest and taxes, or EBIT, saw an increase to $3.8 billion or 8.4% of revenue.

Cash flow from operations and adjusted free cash flow of the company continued to be robust at $5.0 billion and $2.9 billion, respectively.  Its balance sheet remained healthy, with ~$30 billion of cash and over $47 billion of liquidity at 2Q end. The company has enough resources to simultaneously fund disciplined investment in growth and return capital to shareholders – for the latter, the company continues to aim 40% – 50% of adjusted FCF.

The company has increased its guidance range for FY 2023 consolidated adjusted EBIT to between $11 billion and $12 billion.  Likewise, it has raised its expectations for full-year adjusted FCF to between $6.5 billion and $7 billion, and capital expenditures are expected to be between $8 billion and $9 billion.

4. Aptiv PLC

The company’s signal and power solutions segment provides components and systems which develop vehicle’s electrical system backbone, consisting wiring assemblies and harnesses, connectors, electrical centers, and hybrid electrical systems.

It has released its 2Q23 results, with US GAAP revenue coming at $5.2 billion, exhibiting a rise of 28%. U.S. GAAP net income came in at $229 million and diluted earnings per share was $0.84. The company generated $535 million of cash from operations and it returned $28 million to shareholders with the help of share repurchases.

The company saw record revenue and adjusted operating earnings in 2Q, exhibiting continued gains across its entire portfolio and solid operating execution. It achieved strong new business awards, totalling more than $20 billion YTD, because of its smart vehicle architecture solutions, software capabilities and advanced computing platforms.

In FY23, the company expects net sales of between $19,950 million – $20,250 million and adjusted EBITDA of between $2,755 million – $2,855 million. Adjusted operating income is expected in the range of $2,075 million – $2,175 million. 

Conclusion

Presently, best autonomous trucking and vehicle companieshave made dives and boundaries through self-driving technology. Therefore, numerous newer cars have been launched in the market with many autonomous systems. Automation of routine tasks has been attracting interests from several industries. Thus, with the quicker adoption of Internet of Things (IoT), global transportation infrastructure and best autonomous trucking and vehicle stocks are rapidly evolving. 

Development of autonomous vehicle continues to accelerate, and because of this many countries have established laws and regulations related to the technology.

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