Driverless cars would be majority in US cities by 2025, according to John Zimmer, co-founder of Lyft said in 2016 (Michaels & Elliott, 2022, October 27). This week driverless technology is hotspot for different reasons.
On Wednesday, October 26, Mobileye offered its initial public offering price at $21 per share. However, Mobileye made a better than expected IPOs and landed at $28.97 on Wednesday. There was worrisome due to current US stock market’s cooling off. In addition, standing alone business model for driverless technology was viewed as unsustainable according to Daniel Morgan, a senior manager at Synovus Trust co. (Driebusch & Higgins, 2022, October 26). Also, other competitors are better funded, for example, Waymo by Alphabet Inc. and Zoox by Amazon.com.
On the other hand, US Justice Department and Securities regulators are investigating Tesla if it may have misled consumers and investors (Michaels & Elliott, 2022, October 27). Tesla’s Autopilot system is most popular and highest driving assisting system on the roads, whether it may overstate its functions.
Driverless technology or autopilot technology is, fully or partially, applied for most new cars, as Intel’s CEO, Mr. Gelsinger, observes. We are just witnessing Mobileye going alone in public equity markets this week. US car industry is going driverless, which might be slower than the expectation. Still, it seems going that way.
Provided with The Blue Ocean Asset Management Partners, LLC. Further information, please contact us