Electric Vehicles, what’s next?

Shared Autonomous Vehicle S.A.V.

Tesla makes Electric Vehicles. They are stylish, powerful and full of technology. However, that is only one aspect. They design and make solar panels and storage products, but the sector that Tesla keeps under wraps is the autonomous vehicle technology that already peppers their vehicle line up.

BMW unveiled its iX All-Electric S.A.V. which, in my opinion, is internally beautiful but ugly on the outside with an unnecessary grill.

The financial implications can be complicated. Buying into the manufacturers at current share prices might be seen as buying at the top of the market. The suppliers that specialise in sensors and associated technology are more interesting. Some are unique to autonomous vehicles and needs to be ultra-reliable. Some of these companies already have links and contracts with many significant carmakers like General Motors and others that have declared an all-electric lineup.

There is another aspect, the Sharing part of the S.A.V. acronym. Most vehicles are driven by their owners only 5% of the time. The rest of the time it is in a parking space, on the driveway or in a garage. The highest cost of a vehicle is not ‘wear-and-tear’ or fuel – it is depreciation.

 Suppose you roll up to the office in an S.A.V. While you are working, the vehicle drives itself to the first passenger of the day. It carries on fetching and carrying for which the owner receives an income (some say up to £30,000 per year). Then just before you want to leave the office, it returns to take you home!

Our perception of transport has changed over the last year. Technology is progressing at an exponential rate. There are also investment opportunities (I grant you they are potentially high risk) but look at some of the stock prices in high tech companies linked with new vehicle ideas – some will astound you.

This piece highlights two matters, firstly, the speed at which change in vehicle design is moving and that there will be winners and losers as this unfolds.