Picture yourself 20 years from now. Your investments have paid off, your profits were through the roof, and you’re riding in your brand-new Tesla autonomous car. Life is good.
As you’re relaxing and enjoying the scenery around you a thought pops in your head.
You think about that company that you were considering investing in 20 years prior. Their profits were through the roof and they seemed to be revolutionizing the taxi industry…
Just because a company is doing well now, it doesn’t mean you should invest in them. Let’s take a look at the companies that will make you rich while helping you steer clear of downhill investments.
Our technology has advanced more in the past 20 years than it ever has—aptly labeling our current era “the tech age.”
Look around you. We live on the internet. Real life is slowly fading away and we’re becoming more computerized as time moves on.
You really have to hand it to the guys who are using technology to enhance our lives and the world around us, instead of using our lives to enhance technology and the tech world.
We are on the verge of being able to travel anywhere with the click of a button. I’m not talking about teleportation, I’m talking about the autonomous vehicle.
5 years ago, the idea of an autonomous car almost sounded like a joke. Every concept has its sceptics, and this had many. But now, 5 years on, we’re seeing these cars being test-driven. That blows my mind.
You may think this is all well and good for the people who’ll be able to afford these autonomous machines, but what about the rest of you?
Well, there’s Uber. Uber is pushing itself into the autonomous car market, stating that they want to be heavily involved in the roll-out of the first fully autonomous cars. Essentially, they’re looking to streamline their profits by cutting their employees.
This is one route for those who think they won’t be able to afford one, but according to Goldman Sachs it’s estimated that driverless cars could make up as much as 60% of auto sales in the U.S. by 2030. That’s only 14 years from now.
The question is this: Why would anyone need to call an Uber if their car is driverless? They wouldn’t.
The follow-up question is this: What does this mean for my money?
Well, if you follow this advice, it could mean some very profitable moves for your future.
Let me explain…
First, let’s look at Uber’s game plan for their impending future.
Uber is already attempting to test out these driverless cars before the technology has been smoothed out. There’s been a few cases when the driverless cars that Uber are using—which right now have a driver in there for safety and legal measures—have turned the wrong way down one way streets.
These early mishaps from Uber are largely due to the fact that Uber understands this new technology will eventually crush their business, and they’re trying to make their profit as quickly as they can.
The earlier they get their driverless cars up and running without the safety driver, the longer they’ll have to profit before their business has depleted.
I’ll pose the question again: Why would anyone need to call an Uber if their car is driverless?
Uber has the time between the release of these cars and the time it takes for the cars to become economically efficient to make as much money as they can. But this brings with it another problem.
Uber is investing in the companies who are manufacturing these cars, which in turn is speeding up production.
Again, this is great for Uber RIGHT NOW. But with Uber’s investments, and the amount of competition, an affordable driverless car will be sitting in your driveway in no time, rendering Uber useless.
At this point Uber reaches a fork in the road.
If they go left they accept the fact that their advancement and investments birth a competition that is too big for them to take on. They could make a quick profit, but they have to keep in mind that it won’t last too long.
If they go right they can attempt to make some long-term deals with the most potentially prosperous autonomous car companies and see if they can retain future profits even after their service is massively unnecessary to most people.
At this point you might be pulling your hair out while screaming: But what does this mean for my money?
Now I’ll get to the good stuff.
Considering all that I’ve mentioned I don’t think that Uber is a good company to turn to for your long-term investment. If you feel like you can time it right and get in and out quicker than it takes for Uber to fall, then go for it.
Once Uber starts to decline you can also get involved with short-selling (betting on the fall) Uber stock.
But long term, you should be looking into investing into the top prospective autonomous car companies, because they’ll be the ones making the most profit. Turn to Tesla, Mercedes, BMW, Ford, and Volvo, just to name a few.
Once the market for these cars is at full speed, then you can get into the details of which one of these companies is the best, but for the next 10 years or so we should be seeing a healthy incline for all of these tech savvy auto manufacturers.
