A recent lawsuit by electric-car battery maker A123 Systems against Apple Inc. (NASDAQ:AAPL) for poaching its engineers gave rumors of Apple building an electric vehicle more credence.
However, while Apple has gotten most of the headlines surrounding high-tech cars of late, it’s far from the only Silicon Valley company that thinks it can play in the automotive space.
These four tech stocks aren’t all necessarily in the business of making cars, but they still could do their part to transform the automotive landscape.
‘Motor City’ Tech Stocks: Google Inc (GOOG, GOOGL)
Most of the companies on this list are set to benefit from technologies that will be incorporated in high-tech cars.
However, Google Inc (NASDAQ:GOOG, NASDAQ:GOOGL) is actually working on an entire car — specifically, a self-driving car. Google has produced a fully functional prototype that will hit San Francisco for testing this year, and the company believes the technology will be fully ready in the next two to five years.
Project head Chris Urmson had this to say in a January conference call:
“We’re thinking a lot about how in the long-term, this might become useful in people’s lives, and there are a lot of ways we can imagine this going. One is in the direction of the shared vehicle. The technology would be such that you can call up the vehicle and tell it where to go and then have it take you there.”
Which leads into the second thing Google is working on: Namely, a ride-sharing service to take on Uber. Google’s entry into the space is extremely problematic for Uber, as Uber relies on Google Maps technology, and because Google’s chief legal officer David Drummond occupies a spot on Uber’s board.
‘Motor City’ Tech Stocks: Microsoft Corporation (MSFT)
If one thing stood out in the Microsoft Corporation (NASDAQ:MSFT) introduction to its HoloLens technology, it’s the prominence given to HoloLens’ functionality as a design tool, specifically for the design of automobiles.
Microsoft has involved itself with automobiles since 1998, back to its partnership with Clarion on the Auto PC. Microsoft benefits from their experiences at creating in-car connectivity solutions, as well as from the current flux of data available from on-board performance monitoring sensors.
If designers could use HoloLens to visualize and alter their designs in 3-D without the need for physical models, Microsoft would continue to leave its mark on the automotive space.
That said, right now, such involvement is merely speculation — MSFT hasn’t actually released a hard launch date for HoloLens. But the potential is there for Microsoft to be at the forefront of high-tech automotive design.
‘Motor City’ Tech Stocks: Sony Corp (ADR)
Sony Corp (ADR) (NYSE:SNE) is the top image sensor provider for smartphone cameras, and it is hoping to transition that leadership into the automotive market.
Sony’s Shigeo Ohba thinks demand for image sensors on cars will grow “significantly” from 2017 to 2030, and that is why Sony recently invested in Japanese robotic car startup ZMP.
Sony thinks it can install up to 10 cameras per vehicle, and at a much higher rate (“four to five times more expensive”) per camera than smartphones.
Ohba believes Sony can be the No. 1 provider of image sensors for self-driving cars when they arrive commercially in the mid-2020s. It’s a long time off, sure, but Sony is positioning itself to be a major player in the tech-heavy car of the future.
‘Motor City’ Tech Stocks: AT&T, Inc. (T)
AT&T, Inc. (NYSE:T) is another player in the connected-car game with its Drive platform.
Not a software intended for cars per se, Drive is a resource for automakers to use when deciding which capabilities to integrate into their cars. AT&T Drive provides the tools for automakers to customize their own connected car solutions, from “connectivity and billing solutions to data analytics, infotainment, and firmware over-the-air updates.”
Started in January 2014, AT&T Drive already is in use by app developers AetherPal, Audiobooks, Dash Radio, eventseeker and Glympse.
Further, AT&T reached an agreement with Samsung (OTCMKTS:SSNLF) that includes access to Samsung handsets, tablets and wearables at its Atlanta-based Drive Studio, where it will function as a solution hub for automotive manufacturers, designers and developers.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
