By Steve Goldstein, MarketWatch
Yeah, yeah, autonomous driving is an interesting lab experiment for Uber Technologies and Lyft to be involved in.
But it will be “impossible” for them to scale to production.
That’s according to Trip Chowdhry of Global Equities Research, who just attended talks on autonomous driving research at Volvo Concept Lab.
There is zero overlap, he says, between autonomous driving, navigation systems and ride-sharing.
Every sensor has its own software, firmware and algorithms, as does every mapping module, and every control is unique to that manufacturer.
Chowdhry shows the architectural diagram of Volvo’s Polestar autonomous platform, and asks how many source code trees are there—over 1,000—and how many would be under the direct control of Uber /zigman2/quotes/211348248/composite UBER -3.18% and Lyft /zigman2/quotes/208999293/composite LYFT +1.74% —not more than 20.
By contrast, Tesla will be successful since it is the only company with a fully integrated single source code, from sensor to vehicle control, Chowdhry says.
Market Realist in its own analysis says Ford Motor Co. /zigman2/quotes/208911460/composite F +1.79% and Tesla have big plans in the space and that “faster innovation will be the key distinguishing factor.”
Thursday was China’s term to jawbone the market higher—a mere statement that it wasn’t immediately retaliating against U.S. tariffs did that, sending the Dow industrials /zigman2/quotes/210598065/realtime DJIA +1.76% up by 326 points—and Friday action was positive as well as U.S. stock market futures /zigman2/quotes/209948968/delayed ES00 +0.15% /zigman2/quotes/210407078/delayed YM00 +0.19% rose. See Market Snapshot.
Europe and Asian stocks were stronger.
Crude /zigman2/quotes/211629951/delayed CL.1 +0.12% futures were weaker.