Robo-Taxis: The Convergence of Three S Curves

Today the public markets only give Robo-Taxis currently $30 billion worth of value; Although legendary investor Cathie Wood believes their is potential for $7 trillion worth of revenue in 2030 from this highly disruptive and somewhat speculative market. She believes Robo-Taxis will be participating in the convergence of three sectors that will all experience S curves at the same time. Those three sectors are;

1) Batteries/Storage

2) Artificial Intelligence

3) Robotics

In this article we will talk about how those sectors are helping push Robo-Taxis into the main stream.

Batteries/Storage

Robo-Taxis will be dominated by electric vehicles because it is the most economical; this means lots of batteries will be involved. Battery innovations are taking place all over the world; the cost to produce the batteries are coming down, energy densities are increasing , charging speeds increasing, and efficiencies in storing the batteries are the best they’ve ever been. It won’t be long before a car manufacturer can produce a $10,000 at cost long range EV and have it generate $30,000 a year in high margin revenue from driving people around for 8 hours a day.

Artificial Intelligence

Supercomputers have enabled companies to have massive amounts of data analyzed more quickly than ever before. When a supercomputers main purpose is to solve full self driving; the computer begins to make decisions quicker than a human. Supercomputers don’t drink and drive, and the more data you feed it the smarter it gets.

Tesla has already shown through its quarterly safety report link here: https://www.tesla.com/en_IE/vehiclesafetyreport that it is already safer for their autopilot to drive the car than it is the human driver; imagine where this technology will be in 2030? The cost of ordering a Robo-Taxi for all your car needs annually will likely be far less than opting to buy a vehicle; Robo-Taxis could end car ownership as we know it for lots of big cities.

Robotics

Last but not least, robotics; The factories that will build the Robo-Taxis will be on the cutting edge of manufacturing technologies. Already today, Tesla’s factories are run mostly from highly accurate robots, some big, some small, but all can work like crazy without breaks, saving costs. To keep the cost of Robo-Taxis low, saving costs on the manufacturing thanks to robotics will only help this mega trend come sooner; it will be exciting to see what happens.