Alphabet Inc.’s (NASDAQ: GOOGL) self-driving car company Waymo is about to get way bigger. It has set a deal to buy several thousand Fiat Chrysler Automobiles N.V. (NYSE: FCAU) minivans. The Pacifica is one of the automakers most successful models. Waymo has tested it before. The primary challenge the alliance faces is that much of the public still worries about self-driving technology.
While neither company will say how many vans will be involved, several thousand would sharply increase Waymo’s fleet. Neither company would say whether the Pacificas will be used for a large test or will be sold to a small number of people to use on closed roads. The Waymo technology has not been approved for driving on open roads.
Self-driving technology is still in its infancy. A number of small tech companies and very large car companies are rushing to test and deploy self-driving cars. However, it may take years before they are sophisticated enough to operate on any and every road in the United States. Several pieces of research, including extensive ones from Intel Corp. (NASDAQ: INTC) and AlixPartners, show the acceptance of self-driving cars is limited. Ironically, this is because a number of people do not think they are safe. Self-driving car companies maintain the primary reason for the technology is safety. There have been a very small number of accidents with cars in auto pilot mode. The most visible of these have involved Tesla Inc. (NASDAQ: TSLA) vehicles.
As a division of Alphabet, Waymo has huge amounts of capital available to it that other tech startups do not. On the other hand, the world’s largest car companies, each of which is driving into the business, have capital, product development, R&D capacity and distribution networks.
Even if the public comes to accept self-driving cars, there is no guarantee and a Waymo partnership with Chrysler will be a winner.
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
