Autonomous vehicles really are winning today, with Foresight Autonomous (NASDAQ:FRSX) surging nearly 20% on some big AV news. Importantly, it looks like FRSX stock now represents a chance to electrify trucking in the European Union. So what do you need to know? And what makes the Foresight Autonomous news so appealing?
To start, what is Foresight Autonomous? Well, the Israeli firms specializes in developing sensor systems for the automotive industry, meaning that it has a hand in self-driving cars.
Importantly, one of the biggest reasons so many investors are interested in autonomous vehicles is that they promise to make roads safer. Foresight Autonomous is no different. According to the company, its sensor systems help AVs navigate harsh weather conditions. Additionally, some of its solutions provide pre-collision alerts. So what exactly are those solutions? And why is FSRX stock soaring today?
Investors should note that Foresight Autonomous offers a variety of its sensor systems. These include different cameras, accident prevention solutions and vehicle-to-everything solutions. It says that through these solutions, autonomous vehicles can detect anything on the road no matter the lighting or vehicle condition.
With this reputation, Foresight Autonomous just signed on to a major project. And because of the potential to transform transportation, FSRX stock is shooting higher.
Earlier this morning, Foresight Autonomous announced it will receive a $1 million grant from the European Commission as part of the Horizon 2020 framework. This grant will allow it to work with a consortium of other autonomous vehicle specialists, known as All Weather Autonomous Real logistics operations and Demonstrations (AWARD). Foresight first joined this consortium in May 2020. Now, thanks to the grant money, it will provide its QuadSight vision solutions.
Why FSRX Stock Is Soaring Today
Essentially, the QuadSight uses multiple cameras to give vehicles multi-spectral vision. Diving into the jargon there, human eyes can only see so much. This means that Foresight Autonomous thinks its QuadSight gives AVs beyond-human capabilities. That sounds pretty appealing, especially as human error is responsible for so many accidents.
Importantly, Foresight will be working with AWARD to develop heavy-duty trucks for use in Europe. While it provides the sensors, it will join traditional automakers smart fleet specialists. Investors should note that the European Commission has identified a need for this type of heavy-duty, self-driving commercial vehicle. While Europe works to make its roads safer, it is joining a much bigger trend.
And that is where the longer-term catalyst for FRSX stock comes in. Just today, we have seen how excited investors are about the future of transportation. Luminar (NASDAQ:LAZR) is shooting higher, as is CIIG Merger (NASDAQ:CIIC) ahead of the Arrival SPAC merger. Plus, electric vehicle companies have been dominating Wall Street thanks to their futuristic potential.
Is FRSX stock the next step as investors move from passenger AVs to commercial AVs? Keep a close eye on the news, and on the progress of AWARD. This is certainly a story worth watching.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.