Since it’s arguably the most significant geopolitical event since World War II, we as investors are all looking for unique ways to play the Russia-Ukraine war. Surely, you’ve heard a laundry list of ideas, including buying oil or EV stocks, buying gold or cryptos, or even investing in cybersecurity stocks. But let me offer an idea that you probably haven’t heard yet: Buy autonomous vehicle stocks.
Sure, it sounds strange. What do autonomous vehicles have to do with the war in Ukraine?
But the connection is actually quite simple – and very profound.
Because of the war in Ukraine, both gas and metal prices are soaring. Surging gas prices make it costly to drive a gas-powered car. And rising metal prices, meanwhile, make it very expensive to make an electric car. Therefore, regardless of which way consumers turn, the cost of personal auto transportation is likely going to be very high for the next 12 to 24 months.
Autonomous Ride-Hailing’s Breakout
With the rise of extremely high personal auto transportation costs, consumers will likely question the need to own personal vehicles. Indeed, today’s hyper-connected world allows us to hail an Uber (NYSE:UBER) or Lyft (NASDAQ:LYFT) from essentially anywhere. But those Uber and Lyft prices are going to keep rising, too, because of wage inflation.
The ultimate fix, of course, is autonomous ride-hailing — a ride-sharing service built on top of autonomous cars. Such a service will significantly reduce the cost of personal auto transportation for consumers. It is truly the future.
To that end, we think it’s a great time to buy autonomous vehicle stocks. Today marks a critical inflection point. Autonomous vehicles (AVs) will go from “a cool sci-fi concept” to “an important technological evolution necessary to drive down the costs of auto transportation.”
That is an enormous shift. Indeed, it’s so big that we think 2022 will go down as the year autonomous vehicle stocks began to soar.
The Autonomous Vehicle Revolution Has Arrived
While it may seem like AVs are a foreign concept, trust me when I say they are anything but.
Indeed, autonomous vehicles are already all around us.
Across the nation, Uber Eats is leveraging a fleet of driverless cars to deliver food and other goods. In Houston, Domino’s (NYSE:DPZ) is delivering pizzas autonomously using mini self-driving cars. 7-Eleven has launched its own autonomous delivery service in California. Kroger (NYSE:KR) is using AVs to deliver groceries in Phoenix and Houston. FedEx (NYSE:FDX)is testing out autonomous deliveries in Houston as well. And TuSimple (NASDAQ:TSP), meanwhile, is driving trucks autonomously all around Phoenix.
Folks, the Autonomous Vehicle Revolution has arrived.
Let me repeat that because it bears repeating. The Autonomous Vehicle Revolution is not just coming. It has already arrived.
And you may be saying that everything I’ve talked about so far deals with the transportation of goods, not people. But that’s how this all begins.
That is, this revolution starts by testing self-driving technology with the transportation of goods. The cost of a mistake is the cost of the goods — not a human life. Then, once proven to be safe with goods, companies will apply that same technology to the transportation of humans.
Indeed, Google’s Waymo unit announced last week that it’s launching a fully autonomous robo-taxi service in San Francisco.
So, forget what all the cynics are saying about self-driving cars as a thing of the future. Every major food and logistics company is set to test autonomous delivery and trucking in 2022. And some major players are already launching full robo-taxi services. The AV Revolution has unquestionably already arrived.
Geopolitics Powers Autonomous Vehicle Stocks
The Russia-Ukraine war only adds fuel to a fire that’s already burning very strong.
The result? Within years, self-driving trucks and vans will constitute the bulk of the world’s logistics network. And by 2030, self-driving cars will be a ubiquity, transporting not just goods everywhere — but you and me, too.
Of course, the economic implications herein are huge. We’re talking about a paradigm shift in not only the multi-trillion-dollar transportation market but also a fundamental reshaping of the insurance, healthcare, tourism, oil & gas industries — and so much more.
In total, the AV Revolution is projected to inject $7 TRILLION into the global economy — every single year!
The investment opportunity here is enormous.
But at this point, the intelligent investor has to be asking: What changed? I mean, for years, AVs have been a mere science-fiction concept with very rare on-road testing. Now they’re ready to take over the world? What happened!?
The Millionaire-Maker Tech Underpinning Autonomous Vehicle Stocks
I’ll tell you what changed: The cost of LiDAR technology.
You see; the key to unlocking full autonomy is by enabling cars to have complete “vision.” Specifically, we have to give them a human-like ability to see and respond to their surroundings.
Ideally, you want to do this with built-in cameras since they’re space- and cost-efficient on the hardware front.
But computer vision (what you get from cameras) has significant limitations that have proven difficult to overcome. Long story short, if the human eye were a camera, it would have more than 100X the resolution of a standard on-car cameras. So for cars to gain a comparable ability to see and respond to their surroundings, you’d need hundreds of cameras on the car.
That just isn’t possible. It’d cost thousands of dollars — and result in ugly and bulky cars.
The fix? A different type of sensor called LiDAR.
LiDAR — short for Light Detection and Ranging — are laser sensors. They beam out lasers to their surroundings. Those beams hit objects around the car and then bounce back to the sensors. And the sensors then carefully measure either the travel time of those laser pulses (time-of-flight or ToF) or a change in frequency of the returning light wave (Frequency Modulated Continuous Wave or FMCW) to create a proxy for distance.
Do this thousands of times in a 360-degree frame-of-view, and voila. You have a complete and dynamic “picture” of the surrounding environment.
The science is crystal clear here. LiDAR fixes the shortcomings of computer vision and cameras. And therefore, LiDAR is the key enabling technology behind the $7 TRILLION Autonomous Vehicle Revolution.
But for years, there has been one problem with LiDAR. It has been prohibitively expensive.
Less than 10 years ago, your typical LiDAR sensor cost about $75,000. That’s more than double the average sales price of an entire car. At that price, automakers couldn’t integrate the tech into their cars. It would result in a car that no one could buy.
But LiDAR costs have collapsed over the past few years.
Thanks to improvements in manufacturing capabilities, economies of scale and innovative technological breakthroughs, the cost of LiDAR sensors has plummeted to a point where there are some LiDAR makers out there today that are integrating the technology into vehicles for less than $1,000 per sensor.
That’s right. LiDAR costs have plunged from $75,000 to less than $1,000.
And at less than $1,000, today’s LiDAR sensors are no longer prohibitively expensive. In fact, they’re quite reasonable. And as a result, they can now be integrated into cars to enable self-driving.
No wonder self-driving cars are starting to pop up everywhere…
And with the costs of car ownership only rising rapidly — thanks to the Russia-Ukraine war — the economic value proposition of self-driving cars is becoming exponentially more attractive by the day.
That’s why we’re pounding on the table about autonomous vehicle stocks. It’s their time to shine — and take over the world. We firmly believe that people who buy the right autonomous vehicle stocks today will make much more than 10X their money over the next few years.
The Final Word on Autonomous Vehicle Stocks
Mark my words. As soaring gas and metal prices converge with rapid technological improvements in the field of self-driving, 2022 will go down as the year the AV Revolution really got started.
That means it’s time to buy autonomous vehicle stocks for huge long-term gains.
And what better way to play this $7 TRILLION revolution than by buying into the companies that are creating the ground-breaking technology making it all possible?
There’s no better way. The best way to play the AV Revolution is to buy LiDAR stocks.
Specifically, there is one LiDAR stock out there — trading for less than $20 — that could end up being the stock market’s biggest winner in the 2020s.
Seriously, this stock could easily rise 10X, 15X or 20X within the next few years alone. It’s a stock I’d strongly urge my own family members and friends to go “all in” on right now.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.