Applied Intuition to Develop Autonomous Trucks with Isuzu
This Week in The Autonomy Economy is presented by Koop Insurance, a specialist insurance provider focused on robotics and autonomous vehicles.
This Week in The Autonomy Economy, The Road to Autonomy Index returned 0.47%, Applied Intuition partnered with Isuzu to develop autonomous trucks for the Japanese market, Uber announced a new autonomous driving partnership with Wayve and Beijing is doubling down on autonomous vehicles.
Qasar Younis and Peter Ludwig, Co-Founders of Applied Intuition continue to build one of the most financially successful businesses in autonomy. The deal with Isuzu to develop autonomous trucks for the Japanese market is just the latest in a long list of strategic decisions and acquisitions that Applied Intuition has made.
When the market begins to measure the success of autonomy on revenue and profitability, Applied Intuition will be right there at the top and perhaps in the top spot. With 18 of the top 20 global automotive OEMs as well as the top global truck OEMs as customers, they are developing their business moat.
To quote Warren Buffett; “A truly great business must have an enduring ‘moat’ that protects excellent returns on invested capital”. The moat surrounding Applied Intuition keeps on growing.
On the theme of growing, Uber keeps on growing their autonomous vehicle partnerships. Over the last two weeks, Uber has announced autonomous vehicle partnerships with Cruise and Wayve. Is Zoox next? Or perhaps an expansion of the Waymo partnership to both San Francisco and LA?
Only time will tell, but it is becoming very apparent that Uber is the platform for autonomy. Uber is going to enable autonomous vehicles to scale. The autonomy ecosystem is beginning to take shape and investors are once again paying attention to the sector.
As investors’ interest in autonomy grows, we are introducing a new podcast called Autonomy Markets.
Autonomy Markets is co-hosted by Grayson Brulte, Founder & CEO of The Road to Autonomy and Walter Piecyk, Partner & TMT Analyst, LightShed Partners and General Partner, LightShed Ventures.
Each week Grayson and Walter will break down the autonomy markets and offer their unique perspectives. Grayson will offer his insight and opinion from an autonomy industry insider’s perspective and Walt will offer the Wall Street perspective.
Autonomy Markets will be released every Sunday at 2pm EST. The first episode will be released on Sunday, September 8th.
Episodes will be available on all The Road to Autonomy podcast platforms including Apple Podcasts, Spotify and YouTube.
Cruise parent GM, Uber, Waymo parent Alphabet and Zoox parent Amazon are The Road to Autonomy Index component companies
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What’s Moving the Markets
Applied Intuition to Develop Autonomous Trucks with Isuzu
On August 26th, Applied Intuition and Isuzu Motors entered into a strategic partnership to develop autonomous commercial trucks. The co-developed autonomous trucks are scheduled to first go into service in 2027 in Japan.
If the timeline holds, Isuzu will become the first Japanese commercial automaker to develop and commercialize an autonomous truck in Japan. The Japanese market is ripe for the adoption and commercialization of autonomous trucks because of a growing driver shortage.
Japan is facing a nationwide driver shortage as a result of an aging population and new labor rules that took effect on April 1, 2024. The stricter enforcement of labor overtime rules will create a 14% shortfall in trucking capacity this year and a 34% shortfall in fiscal 2030 according to Japan’s government.
The solution to fill this shortfall—autonomous trucks. The Isuzu management team clearly understands the economic reality Japan currently faces with the driver shortage. Where there is challenge there is also an opportunity that could eventually turn into a major source of revenue growth.
If self-driving becomes widespread in the future, our self-driving business has the potential to grow into a major source of sales.
– Shinsuke Minami, President Isuzu as told to the Nikkei on August 27, 2024
In the future, Isuzu’s autonomous truck business could become larger than their traditional truck business. To capitalize on this, Isuzu has presented the ISUZU Transformation – Growth to 2030 (IX) plan where the company will establish a new organization dedicated to developing businesses that utilize autonomous driving technology.
Qasar Younis and Peter Ludwig have built Applied Intuition into one of the most interesting companies in autonomy. With 18 of the top 20 global automotive OEMs as well as the top global truck OEMs as customers, the company is poised for long-term success.
If you are interested in learning more about Applied Intuition and the autonomy ecosystem, join us at Intersect 24 on September 10th at the Computer History Museum in Mountain View, CA.
Can’t make Intersect 24? Then we would recommend the following podcasts:
- Applied Intuition: Powering Off-Road Autonomy, A Conversation with Qasar Younis and Peter Ludwig (July 15, 2024)
- AI-First Approach: Bringing Silicon Valley’s Leading Edge to Global Automakers, A Conversation with Qasar Younis and Peter Ludwig (April 16, 2024)
- Simulation First Approach to Autonomy, A Conversation with Qasar Younis and Peter Ludwig (June 29, 2021)
Our take: Applied Intuition is one of the most interesting companies in autonomy today. Their acquisition of Embark in May 2023 is beginning to pay dividends.
Applied Intuition is currently ranked #1 with a bullish outlook on the AUTONOMY LEADERBOARD in the software suppliers category.
Wayve and Uber Partner to Accelerate Autonomy
Uber continues it’s hot streak as Dara Khosrowshahi and team continue their autonomous vehicle dealmaking.
On August 29th, Uber and Wayve announced a partnership where the companies will collaborate with automotive OEMs on autonomous driving technology.
As part of the partnership, Uber invested an undisclosed amount in Wayve. Additionally, Wayve powered vehicles will be available on the Uber platform in the future.
While Uber gets the spotlight, Wayve is surfing the mavericks. They are going for it, they are doing it their way by embracing Embodied AI. Now the market is taking notice, first it was a $1 billion funding round led by SoftBank, now it’s a partnership with Uber. Next, it’s a billion dollars in revenue.
Wayve is slowly becoming one of the most important companies developing autonomous driving technology today. The Big 3 in autonomous driving is emerging and in our opinion the Big 3 today are Waymo, Cruise and Wayve.
If you are interested in learning more about Wayve and their Embodied AI approach for autonomous driving, we would recommend the following podcast:
- AV 2.0, Wayve’s Approach to Autonomous Driving, A Conversation with Alex Kendall, Co-Founder & CEO, Wayve (March 26, 2024)
Our take: Uber is the platform for autonomy.
Wayve is currently ranked #4 with a positive outlook on the AUTONOMY LEADERBOARD in the autonomous vehicle category.
Uber is currently ranked #1 with a bullish outlook on the AUTONOMY LEADERBOARD in the software platforms category.
Uber is a The Road to Autonomy Index component company
Beijing Doubles Down on Autonomous Vehicles, Will FSD Get Approved?
As Beijing doubles down on autonomous vehicles and the Biden Administration considers a ban on Chinese autonomous driving software, will Tesla be caught in the middle?
Anything is possible as China could look to retaliate and potentially ban Tesla from operating FSD in China (approval is still pending).
In April, Tesla became the first and only foreign brand to meet China’s auto data security standards. This comes on the heels of Tesla becoming the first foreign company approved to directly manufacture cars in China in 2018.
China is a big market for Tesla. In 2023, Tesla sold 947,742 China-made vehicles, up 33.32% year-on-year. With a market of 1.42 billion people and the government fully supporting the development and commercialization of autonomous vehicles, Tesla is going to have to navigate a tricky geopolitical landscape if they want to grow in China.
There’s a political poker game going on that Tesla is trying to navigate. – Dan Ives, Managing Director, Equity Research, Wedbush Securities
Does China ultimately end up banning FSD? Or will the country play chess, approve FSD (as the data is stored locally on the mainland) in an effort to corner the global autonomous vehicle market? After all, China did this with the electric vehicle market.
The United States is currently the world leader in the development and commercialization of autonomous vehicles, but that lead is slowly slipping away as legislators are divided over the technology.
On one side of the aisle, a large contingent of legislators are demanding that autonomy gets banned, because that is what a select group of powerful donors want. It’s sad that politics can hold up progress when the progress benefits every single American.
It’s time to come together and do what is right for the U.S. economy and brush aside the interests of those select donors.
The U.S. economy needs autonomy to prosper Autonomy will unleash economic growth and usher in what we call the autonomy economy.
Our take: Autonomy is becoming a geopolitical issue with economic implications.
Tesla is currently ranked #1 with a bullish outlook on the AUTONOMY LEADERBOARD in the personally owned autonomous vehicle category.
Tesla is a The Road to Autonomy Index component company
Piquing Our Interest
Lights, Camera, Robotaxi Tesla is planing to introduce their robotaxi aka CyberCab at event on the Warner Bros. studio lot in Burbank, CA on October 10th.
California Inches Closer Towards Allowing Autonomous Trucks On Friday, August 30th, the CA DMV released draft regulatory language that would allow autonomous trucks to operate in the state. The draft language is a positive step for California’s economy. More importantly it shows that California is willing to put it’s economy before the wants of special interests who desire to see the technology banned for their own selfish gain.
NVIDIA Reported an Increase in Automotive Revenue On August 28th, NVIDIA reported automotive revenue of $346 million, up 5% from the previous quarter and up 37% from a year ago.
Waymo is Planning to Expand to San Jose and the East Bay In an interview with the San Francisco Chronicle, a Waymo spokesperson said the company is planning to eventually expand to the East Bay and San Jose.
China Expands Autonomous Vehicles ODD On August 27th, China’s Ministry of Public Security announced the expansion of autonomous vehicle testing in the country. Autonomous vehicles can now be driven on 32,000 kilometers (19,883.878 miles) of roadways. To date, 16,000 test licenses have been issued for autonomous vehicles in China.
Social Buzz
Nuro Introduces 4th Gen Nuro Driver
Nuro is in the midst of a comeback of sorts. The company appears to be de-emphasizing their Nuro delivery bot as they highlight the Nuro Driver. Could Nuro complete the pivot and emerge as an autonomous driving licensing company? Only time will tell, but we are very much looking forward to meeting with Nuro’s leadership and going for a ride in the new vehicle later this month.
Our take: Something is cooking over at Nuro. The line; “utilizes automotive-grade components that are going on mass production OEM vehicles” hints at their long-term ambitions.
Curbside Pickup at PHX
Individuals flying into PHX (Phoenix Sky Harbor Airport) can now order a Waymo right from the curb. This is a major breakthrough for the user experience. No more train rides or confusion. Grab your bag, summon a Waymo and head off to your destination.
Our take: SFO and LAX, it’s now your turn to enable curbside pickups.
Waymo is currently ranked #1 with a bullish outlook on the AUTONOMY LEADERBOARD in the autonomous vehicle category.
Waymo parent Alphabet is a The Road to Autonomy Index component company
The Road to Autonomy Index® / Weekly Performance
The Road to Autonomy Index® is a high-definition lens into the emerging world of autonomous vehicles. It is the world’s first and only pure-play index designed to measure the performance of the autonomous vehicle/truck market.
For the week of August 26th, The Road to Autonomy Index returned 0.47%, the S&P 500 returned 0.24% and the NASDAQ 100 declined 0.74%. The Road to Autonomy Index outperformed the S&P 500 by 0.23% and outperformed the NASDAQ 100 by 1.21%.
Year to Date (YTD), The Road to Autonomy Index has returned 13.99%
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Tuesday, August 27, 2024
Subscribe to This Week in The Autonomy Economy™
A weekly newsletter featuring insight and commentary on the autonomy economy™ and how the financial markets are viewing its emergence.
All price references and market forecasts are as of the date that this newsletter has been sent. The Road to Autonomy is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this newsletter. The information contained in this newsletter does not constitute investment advice and should not be relied upon to evaluate any potential transaction.
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