The Pros and Cons of Self-Driving Cars

The Pros and Cons of Self-Driving Cars

The next time you honk at another car on the freeway, there is a small chance that it is actually a self-driving robot.

Coupled with the emergence of the electric vehicle, self-driving cars are one of the hottest topics in the automotive industry. Just as any other time where there is the potential to disrupt the current marketplace, there are investment consequences worth noting.

Even a small market penetration of self-driving cars will have big implications on traditional industries. Insurance rates, the transport industry, apps such as Uber or Lyft, and of course, the traditional auto marketplace will be affected. Automotive giants that are not able to keep up may have trouble keeping revenues in line with competitors. At the same time, it may be a boon for the companies that are inventing and proliferating the new technologies to make this future possible.

On the automotive side, Fool.com cites Google, BMW, Mercedes-Benz and Audi as leaders in the field of developing self-driving vehicles. On the tech side, Delphi Automotive (NYSE: DLPH), Autoliv (NYSE: ALV), and American Tower (NYSE: AMT) as companies that are making big advances in cameras, sensors, and other parts necessary to implement the technology.

Original graphic from: CJ Pony Parts