I own shares in each of the taGMan companies. I believe these seven companies will be leaders in what some think will be a $10 trillion global market opportunity for EVs, autonomous vehicles, and new mobility businesses. To believe in taGMan, first you have to acknowledge an accelerating global push toward EVs together with the continuous development of self-driving technology. I crossed that mental hurdle in 2017 as I began building the portfolio beginning with GM, Nvidia, and Google. In 2018, I added Tesla to the group, believing at the time the company had insurmountable engineering advantages. This year, I added Microsoft and Amazon to the portfolio after reducing some of the Tesla exposure. I’ve owned Apple the longest, initially not recognizing the company as one that will lead in a future TaaS world.
Over the next several newsletter updates, I’ll dig further into why each of these companies are taGMan companies. Logically, there will be other entities that also will win in a future of EVs and mobility initiatives. Today, however, I believe these seven companies stand the best chance to profit faster than all others.
Check out my summary reasoning for the taGMan-seven below.
Tesla
Tesla is the company that drove the acceleration toward an EV world. Without Tesla’s EV success, most legacy automaker EV initiatives and the launch of new EV firms would have been significantly slower. While Tesla will prosper in the future, what I once believed were insurmountable company engineering advantage, have rapidly declined. Tesla’s vehicle software integration advantages are still significant, however. The company has accelerated its artificial intelligence development toward introducing full-self-driving capability in current vehicles on the road. But the notion of Tesla winning with all others losing is a fantasy driven by exuberant Tesla fans.
Apple
When I acquired Apple stock in 2015, I never imagined the company would dive into anything connected to automotive beyond the development of Apple CarPlay. Today, however, it’s clear that a future $10 trillion global market opportunity of EVs and mobility solutions is too large of a business even for the most valuable company in the world to ignore. As a reference, the global market for smart phones today is only $500 billion. The company realizes it has the financial strength, engineering capability, logistics experience, and consumer brand favorable opinion to attack this significant TaaS business. But unlike most companies, Apple never reveals its business plans unnecessarily.
If Tesla led the world toward an accelerating EV future, Google is the first corporation to allocate significant investment resources toward autonomous driving in 2008. In what began as Project Chauffeur (Google’s self-driving car program), it became the autonomous taxi service, Waymo, in 2016. Waymo is now part of Alphabet. Google will continue to be motivated to develop full autonomy given its long-term investment in the technology and efforts at developing a mobility solutions business model.
Microsoft
While Microsoft will not build an EV or launch its own consumer mobility solutions business, few companies can handle the algorithm development and big data analysis required to build the machine learning capability necessary for autonomous driving. Microsoft is one of those companies that has this capability. The company is now forming business relationships with other entities striving to develop self-driving solutions. These businesses will be additive to Microsoft’s revenue in the future.
Amazon
If it seems like Amazon wants to compete in every conceivable business category, the company’s investments in EVs and self-driving technology would seem to prove that theory. Zoox. Rivian. Aurora. AWS. Amazon Robotics. Amazon Prime Air Drones. Each of these are either Amazon acquisitions, investments, or development solutions targeted at EVs or autonomous vehicle solutions. All of this suggests Amazon wants a part of the $10 trillion future mobility solutions opportunity.
Nvdia
Nvidia’s AI and self-driving computer customers include, Tesla, Toyota, Hyundai, NIO, Li Auto, Xpeng, Mercedes, PACCAR, Navistar and a host of vehicle suppliers selling self-driving technology. Nvidia technology integration will increase dramatically as self-driving development by automakers and transportation companies continues to increase.
GM
General Motors is the legacy automaker ahead of the rest. While others have recently introduced their latest EVs (Ford’s Mustang MachE and VW’s ID.4 for example), GM is quietly developing EV technology and mobility solution business models unequalled by other automakers (including Tesla). Cruise. BrightDrop. OnStar. Ultium. Fuel cells for locomotives and the military. GM Defense. These are all technologies or businesses that will drive tremendous autonomous technology revenue for the company. And this does not even include GM’s commitment to a full EV fleet for consumers. No other automaker has the broad portfolio of technologies and businesses focused on EVs and TaaS like GM.
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Disclaimer
TaaSMaster, LLC is not a registered investment advisor or broker/dealer. All investment opinions expressed by TaaSMaster, LLC are from personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors may occur.