Goldman Sachs Spotlights Promising Autonomous Vehicle Stocks as Industry Grows
The autonomous vehicle (AV) sector is accelerating rapidly, setting the stage for significant market growth in the coming years. According to a recent analysis by a leading investment bank, investors are shifting focus from whether the technology will work to how quickly AV adoption will expand and how large the market can become.
Rideshare and Trucking: Autonomous Vehicles Are Here
The analyst notes that autonomous vehicles have already made inroads in both rideshare and trucking sectors. Projections indicate the U.S. rideshare market utilizing AVs could reach $7 billion by 2030, representing roughly 8% of the total rideshare market.
Waymo, Alphabet’s autonomous driving division, currently operates more than 1,500 robotaxis across key cities like San Francisco, Los Angeles, Phoenix, and Austin. This footprint is expected to grow to seven cities by the end of 2026. Together with other players such as Tesla and Zoox, the market could see over 1,800 commercial AVs on U.S. roads by 2025 and an impressive 35,000 vehicles by 2030.
The expansion is fueled by ongoing improvements in safety standards and a steady reduction in operational costs.
Stock Picks: Who Stands to Gain?
Amid this rapid momentum, investors are encouraged to identify companies best positioned to benefit from the surge while recognizing that some market fears around AV risks may be overstated.
- Tesla: Anticipated to launch its robotaxi service in Austin imminently, Tesla's CEO plans to deploy an initial fleet of 10 vehicles with hopes to scale to thousands. While Tesla showcases promising technology advantages, the rollout may be cautiously paced due to necessary safety validations and geofencing restrictions. The analyst holds a neutral stance on Tesla stock, anticipating moderate profit growth linked to its self-driving initiatives.
- TE Connectivity: This company's expertise in data, power, and signal transfer positions it to tap into AV demand. With connectors for data connectivity representing about 10% of a vehicle's connector value, TE Connectivity is seen as a strong growth opportunity. The stock carries a buy rating, with a price target suggesting over 13% upside from recent levels.
- Lyft: Despite concerns about AV-related risks, Lyft is carving out a role within the emerging autonomous ecosystem by fostering partnerships, managing fleets, and creating demand. The company’s stock is rated a buy, with a price target implying more than 35% potential gain, supported by recent strong share performance this year.
The Road Ahead for Autonomous Vehicles
While the autonomous rideshare market remains in its infancy, the outlook is bullish. Strategic alliances among AV operators and fleet managers are set to grow, pushing the industry forward. Investors are encouraged to look beyond immediate challenges and focus on the medium- to long-term potential propelled by evolving AV technology and market dynamics.
