TuSimple’s (NASDAQ:TSP) recent rally began when TSP successfully sent one of their self-driving trucks across the United States. Not only that, the entire trip took 10 fewer hours than it would take a person in a normal vehicle to complete. That’s a 42% savings on time, and extremely bullish for TSP stock holders.
That speed increase is huge, but it should also be noted that truck driving laws limit the amount of time drivers can be on the road at a time. Self-driving trucks don’t need to eat, sleep or take breaks.
Currently, the entire self-driving process for TuSimple’s trucks isn’t entirely autonomous, but it’s close. Apart from the initial and final miles of the route, the self-driving truck was in control of navigation.
Another consequence of saving time is that the truck’s cargo, in this case watermelons, arrived fresher. Self-driving trucks will enable produce and other time-sensitive cargo to arrive more quickly. This means higher quality produce for consumers and less waste.
Unlike Others, TSP Stock Rally Isn’t a Fluke
TruSimple has all the right ingredients to dominate the $4 trillion global freight market.
This self-driving truck startup based in San Diego, California is developing a fully-integrated software and hardware solution to enable L4+ autonomy in its long-haul semitrucks.
With L4 automation, vehicles are capable of “performing all driving functions under certain conditions.” TuSimple’s technology will be better than L4 but less than L5, or full automation, where vehicles can drive autonomously under “all conditions.”
Achieving L4 is easier, and because trucks drive the same routes day-in and day-out, it more than suffices for now.
TuSimple has a breakthrough technology and a novel business model, is supported by some of the biggest names in trucking and is loaded with cash.
A Top Technology Team
They also have a top team featuring a Caltech PhD founder who researched computation and neural systems. This top talent has attracted even more talent from MIT graduates to former engineers from Uber and Waymo.
TuSimple has one of the most talented teams in the AV space today, and they have 240 patents that prove their proprietary automation software is the real deal.
In addition to integrating their own brilliant tech into semitrucks, they’re also creating an Autonomous Freight Network, which will be their own end-to-end autonomous trucking ecosystem.
This will provide TuSimple with a network of terminals and routes for their self-driving trucks to drive on, meaning the company can further optimize routes and improve their trucks’ efficiency.
Post-IPO, we also see TuSimple’s money situation looking good.
Self-Driving Trucks Make Sense
When most people think of self-driving vehicles, they dream of hopping in their car and relaxing, or sleeping, as their car shuttles them worry-free to work, the gym or any other destination of choice.
But here’s the thing. Self-driving trucks will probably hit the roads long before self-driving passenger cars.
Trucks are far easier to automate.
Trucks essentially take the same routes, day in and day out. Individual commuters, on the other hand, often take wildly different routes to reach the same destination depending on day of the week, traffic and a variety of other factors.
Commuters face far more potential driving permutations on a daily basis than a truck driver.
In the automation world, the more permutations a machine has to account for, the more difficult it’ll be to effectively nail down the automation of that task.
That’s why we see self-driving technology thriving in trucks before its mainstream adoption among passenger cars.
The Bottom Line on TSP Stock
TSP stock is rallying, but unlike most meme stocks, the company behind the stock has crazy-good fundamentals.
Their team is brilliant at what they do, they have their money situation under control and they’re positioned perfectly to dominate the self-driving truck realm.
And not only that, the recent voyage across the U.S. made by one of their trucks is tangible proof of what they can do. The trek validates their tech and strategy.
And it’s clearly getting investors interested in this company, which is reflected in the price of TSP stock recently.
If you’re looking to get on the ground-floor of “self-driving,” consider ditching self-driving cars in favor of self-driving trucks.
We definitely recommend picking up some TSP stock. But it could be worth your time to wait for a pullback before getting greedy, because this company is a long-term winner.
That’s why TuSimple is one of my favorite growth stocks to buy today.
But it’s just one of my top autonomous vehicle stocks, which represent the cream-of-the-crop when it comes to disruptive technological innovation in self-driving vehicles. These companies all feature second-to-none management teams and massive long-term potential.
Each of these next-generation mobility stocks could post early-Tesla-like returns, including a secret startup that’s spearheading the self-driving revolution, and a company I consider my EV “sleeper” stock of the decade.
To see my entire lineup of innovative next-generation EV stocks, become a subscriber of Innovation Investor today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.