💡 According to investment bank UBS, accelerating the adoption of autonomous electric vehicles will be one of the most interesting trends in the foreseeable future.
– Analysts believe that unmanned cars will produce the next technological revolution in the sector, which could be even more significant than electrification.
– UBS noted that China is a global leader in the adoption of electric vehicles, and now has the potential to become a leader in self-driving cars as well.
– China’s domestic market has a high degree of acceptance of autonomous driving, efficient supply chains and a well-developed infrastructure that will facilitate further adoption. It is estimated that the market for unmanned cars in China alone could expand to $100 billion by 2030.
– Against this backdrop, UBS has highlighted several stocks that it believes will be beneficiaries of the development of autonomous driving trends. Analysts note that most of the stocks in the selection have undergone a significant correction this year and now have an extremely attractive valuation.
The best investment ideas in the sector:
✅ Tesla #TSLA
🎯 Target price of $330, upside +94%
The company is a technology leader in autonomous driving development as well as in machine learning. At the same time, Tesla has the largest unmanned car fleet among its peers.
✅ Mercedes-Benz #MBG
🎯 Target price of €89, upside +43%
This automaker has high exposure to the premium segment, as well as advanced solutions in autonomous driving. Mercedes has previously partnered with Nvidia to develop the next generation of computing systems for unmanned cars, which are planned to be introduced in 2024.
✅ Li Auto #LI
🎯 Target price of $25, upside potential +49%
UBS singles out this Chinese company for its innovative solutions in human-car interaction systems and autonomous driving, which position Li Auto as one of the industry leaders.
✅ Xpeng #XPEV
🎯 Target price of $13, growth potential +84%
UBS describes the automaker as one of the leading players in the autonomous driving market in China.
✅ Baidu #BIDU
🎯 Target price is $139, upside +46%
In July, the company announced the Apollo RT6, the sixth iteration of a self-driving electric vehicle designed for robotaxis. This car should start driving on Chinese roads in the second half of 2023.