THE POWER OF 5G AND AUTONOMOUS TECHNOLOGIES Getting in early and riding the coming wave By Gary SmithFirst, I want to thank Richard Gray, our editor. He has been meticulous, passionate, and dedicated to putting out a newsletter that is informative, articulate, and fortuitous If you believe the HWR newsletter has provided you value please share it with your friends and family. We are proud of the topics and the information that we provide. We hope you
feel the same All of us have been hearing about 5G for the last couple of years. It has come in many forms. If you look back at past HWR newsletters, I have reviewed the first 2 parts of the 5G rollout. In this issue, I want to expose you to the power of what 5G will mean to our society from an automotive viewpoint. When I researched the information on 5G and 5G companies I was astounded with the changes coming. Please believe change is coming and actually is here. Remember the changes enabled by 4G including video conferencing, new technology in cars, smartphones and their development as well as Google Maps, etc. Well, 5G will eclipse
this to the point our lives will totally change, and it will happen quicker than we think. Let’s start with the automobile industry and the effects it will have on the rest of businesses and society. This is happening quickly. I am hopefully giving you some thoughts for how you want to invest or divest in future companies and industries. Or just exposing you to the here and now. Actually, it is happening now as we learn to make better use of our roads through continuous 5G connectivity between cars, to the automotive infrastructure, infotainment and even to other road users like cyclists and pedestrians The new wave of transportation will be what is called
TaaS, Transportation as a Service. There will be an extreme domino effect on our society. Let me explain. TaaS is moving so fast that pockets of change using autonomous vehicles are beginning to dominate. Autonomous vehicles are those that are self-driving and electric. Much of the research over the last 20 years has developed into 5G capabilities. 5G infrastructure outbuilding was pacing progress. 5G will be to our lives like the internet was in the early and late ’90s. You have some of the most powerful companies in the world researching these vehicles. In Arizona 50,000 autonomous vehicles are already on the road as Uber and Lyft taxis. One would think this will happen 10 years from
now, but it is upon us now and moving fast. Singapore, China and other countries are adopting this technology rapidly. Tesla and other automobile companies have primitive forms of autonomous cars right now. The financial markets are forward-looking. The stocks of these companies are moving so fast that it may become too late in the next 6 months to participate. What was the last new American automobile company? DeLorean? Chrysler? It has been a while and now there are several each looking to grab a part of the electric car market with unique visions. The elephant in the room is Tesla and it is as much a computer, software, and battery technology company as classic automobile
company. Among others in the USA and elsewhere, Rivian and Waymo each have their visions and strengths as they redefine personal transportation. Remember the horse and buggy? It was taken over by horseless carriages in part because of the preponderance of horse manure. Oats and manure were replaced by gasoline 100 years ago and now gas is being replaced by renewable electricity. As was then, change is heavily driven by health and pollution issues! I bet there were competitions 120 years ago between horses and horseless carriages for which could go fastest, and which could out-pull the other in a tug of war. Here is the domino effect. Harbor Airlines-will begin flying
electric planes (not hybrid) as part of their flights totally bypassing oil-based jet fuel. Within the next 2-5 years, new cars and trucks will be mostly autonomous electric vehicles. As this happens oil will be less and less important. It will be needed in plastics and other things but not cars and not planes. Cars will cost much less to run-and more people will not need to own a car because on demand an autonomous vehicle will drive to their front door, pick them up and drop them off at their destination. Insurance costs will drop as autonomous cars have been shown to reduce accidents by 80% -- since 80% of accidents are caused by human error. Many industries will suffer but new more
environmentally friendly industries will expand - with or without government incentives. Big investors are already selling their oil company investments. There is so much more on this but now let’s look at some companies that have invested in and are beginning to roll out autonomous vehicle technology. #1 Tesla – is one of those companies, like Microsoft in the 1990s, that will always be too expensive to buy and always increase in value. Of course, it could end up like Digital Equipment Company. #2 Google - rivals or exceeds Tesla in self-driving experience through its Waymo subsidiary. It still has to disclose its source of body and
wheels. Waymo will probably then be spun off from Google. #3 Aptiv PLC (APTV) - provides the electrical or nervous system of many of these new vehicles. #4 Nvidia - provides computing power and design graphics for autonomous vehicles, though Tesla has gone off on its own. There are 5 levels of autonomous vehicles. We are just beginning to reach the 3rd level Nvidia already has a level 3 in operation with the Audi A8 #5 Qualcomm - has developed the Lincoln and Mercedes autonomous vehicles (ATV). #6 Intel - provides digital technology to BMW, Ferrari and
Volkswagen. #7 Baidu (Chinese) – provides digital technology to Ford and Chrysler (Fiat). #8 Apple- has a presence yet to be fully defined. #9 Amazon - has several big autonomous vehicle investments, particularly in delivery trucks. #10 Panasonic - and other companies in the battery/energy storage, distribution and clean generation businesses will thrive.. There are many other companies and industries involved but I have just named a few. This is not a suggestion to buy these companies but exposure to what is happening before our
eyes. This is a 10 trillion-dollar technology that is growing in scope and influence. Speak with your advisors ASAP. This is a wave you can still get into early and ride to new financial heights. Stay healthy and stay safe, Gary I hope you have enjoyed this article. I tried to give you a little exposure to this technology. I am continuing to do more research on the TaaS subject. Let me know your thoughts and interests for future issues. Please email me at gsmith@fjmc.org with any questions or comments. |