No hands!
Self-driving cars? How about self-driving trucks? While the robotaxi revolution continues with Alphabet’s Waymo (GOOG) (GOOGL) and repeated promises from Tesla’s (TSLA) Elon Musk, autonomous trucking has taken more of a backseat in discussions surrounding the transport of the future. One can already hail a driverless cab in California, Arizona and Texas, but never before has a truck completed a route without a driver behind the wheel.
Until now: Similar to the (really) early days of robotaxis, a pair of hands was needed inside a robotruck to take over in case of a traffic incident, failure, or emergency. Things are now changing as Aurora Innovation (AUR) takes the next step in removing safety drivers from its vehicles. By the end of this month, the company plans on putting its first fully autonomous truck on a 200-mile stretch of the I-45, a notable freight route between Dallas and Houston, and hopes to have tens more on the road by the end of 2025.
It’s a big deal. Trucking accounts for 70% of all freight moved in the United States, leading to the old slogan, “If you got it, a truck brought it.” Demand is only expected to increase in the coming years at a time when the industry is experiencing driver shortages and high turnover rates. If they deliver on their promise, driverless trucks can help tackle these problems, as well as combat rising costs and supply chain challenges.
About the company: Aurora (AUR) was founded in 2017 by ex-Waymo tech chief Chris Urmson, Tesla Autopilot head Sterling Anderson, and Drew Bagnell, who helped lead Uber’s self-driving division. While it has experienced several delays and pushed-back timelines, Aurora has already inked partnerships with FedEx (FDX) and Uber Freight (UBER), and is one of the only pure-play autonomous vehicle stocks in the market. The next Tesla? Caution warranted? See what Seeking Alpha analysts are saying as Aurora (AUR) trades at around $6 per share.
#Commercialization #Driverless #Trucks