2016_05_27-D20-Weekly-Stock-Index

A Wow Week as All D20 Stocks Rise

Wow. All 20 of the Driverless Transportation (D20) Stock Index component stocks were winners last week, sending the index up more than 3 percent to close Friday at 149.58. Now that’s a nice start to a three-day weekend.

The best percentage performer for the week was Blackberry (BBRY), gaining nearly 6.2 percent and closing Friday at 7.23. No substantive news but BBRY received huge press as Hillary Clinton’s favorite email device while Secretary of State. She used it for personal and official business, a wow of a no-no.

The big story, again, was Nvidia (NVDA). The stock of the graphic processing unit (GPU) chipmaker has more than doubled in value since last summer when the D20 was updated. NVDA closed last week at 45.90, up from 22.73 on August 28, 2015. Time to sell?

Another interesting story was Volkswagen (VLKPY). The auto OEM is reportedly close to finalizing a settlement of its diesel emissions scandal in the US, and it announced a $300 million investment in Tel Aviv based Gett, a ride-sharing app looking to expand in Europe.

Last week’s D20 performance topped the 2 percent rise in the Dow Industrials and 2.3 percent increase in the S&P 500 Index.

Visit the Driverless Transportation D20 Stock Index page to learn more about it and its component stocks.

hands-off-steering-wheel-driverless-car

U.K. Government: Driverless Cars Will Be Liable For Crashes, Not Drivers

Jennifer van der Kleut

One week after the Queen of England’s speech, in which she said new legislation will propel Britain to the forefront of driverless technology, roads minister Andrew Jones gave his own speech, outlining how liability for accidents in driverless cars will work.

In a nutshell, Jones said, the driverless cars themselves will be held responsible for crashes, not the humans who ride in them, v3 news website reports.

Jones explained that the U.K. government believes that cars will be fully autonomous with four years, with no need for human drivers or passengers to need to intervene at all. Therefore, there would be nothing for them to be held liable for.

“The government believes that within four years it will be possible to buy cars that, under supervision, park on their own and pilot themselves on motorways. Eventually, there will be virtually nothing left for the motorist to do,” v3 quoted Jones.

Naturally, Jones says this will completely transform how insurance works.

“Compulsory motor insurance will be retained, but it will be extended to cover product liability so that when a motorist has handed control to their vehicle, they can be reassured that their insurance will be there if anything goes wrong,” he said. “Where the vehicle is at fault the insurer will be able to seek reimbursement from the manufacturer.”

The Queen’s Speech outlined a new Modern Transport Bill, which aims to remove legislative red tape delaying the debut of driverless vehicles in Britain. The Queen said measures in the Modern Transport Bill would “ensure the U.K. is at the forefront of technology for new forms of transport, including autonomous and electric vehicles.”

Many experts say keeping Britain at the forefront will also be a boon for the nation’s economy. Paul Wilcox, Nissan’s European chief, says it could be a 900-billion-pound global industry by 2025, with Britain nabbing a big piece of that pie.

“Autonomously-equipped vehicles will [also] improve the safety and well-being of drivers, with fewer collisions and reduced traffic congestion,” he told The Telegraph.

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NuTonomy Raises $16 Million in Funding for Self-Driving Taxi Pilot

Jennifer van der Kleut

NuTonomy, a self-driving car startup that is backed by Ford Motor Co., announced today it has raised $16 million in funding, which it says will help them achieve their goal of having autonomous taxis on the streets of Singapore by this fall.

Naturally, the Singapore government is one of the big investors, along with major investment firm Highland Capital.

NuTonomy spun out of the Massachusetts Institute of Technology (MIT) in 2013, founded by PhD graduates Karl Iagnemma (CEO) and Emilio Frazzoli (CTO). Since then, NuTonomy has garnered a reputation as being one of the leading companies in the race toward driverless cars.

Now, CEO Karl Iagnemma says this latest round of funding will help them dramatically “accelerate [their] progress—more people and more cars,” he told the Wall Street Journal.

NuTonomy is just one on a list of eight companies working on self-driving technology that want to bring it to the streets of Singapore. The government asked for proposals last year, and eight companies submitted proposals-among which were NuTonomy, Uber and BMW.

“We are inviting companies and research institutions to test-bed their technology and concepts here, in real-life, mixed-use traffic conditions,” Singapore’s Permanent Secretary of the Ministry of Transport Kin Keong Pang said in a statement.

Perhaps in a jab at the regulatory back-and-forth happening in the U.S. right now, Pang added, “We are contributing financial resources in these partnerships and we are able to fast-track regulatory and other administrative approvals, and get the trials and test-beds up and running quickly and with minimum fuss.”

TechCrunch explains, NuTonomy manufactures equipment that is used to retrofit existing vehicles and turn them into driverless ones. They are currently using retrofitted Mitsubishi iMiev electric cars, and are expecting to also use Renault Zoe EVs in its autonomous cab service later this year, the Wall Street Journal reports.

TechCrunch reports, NuTonomy is also currently testing cars in Michigan and in the U.K., where they are partnering with Jaguar Land Rover, among others.

Most recently, NuTonomy gained a lot of attention when it ran a test program for an autonomous shuttle operating in an office park that could be summoned by an app. Representatives said the amount of data gathered by the program was incredibly valuable.

SafeCar1

Feds Should Preempt States on Driverless Regs: SAFE

Burney Simpson

Autonomous vehicles would be developed faster if federal rules could preempt state laws on the technology, the Washington, D.C-based advocacy group SAFE argued last week.

The not-for-profit Securing America’s Future Energy released its The National Strategy for Energy Security: The Innovation Revolution paper, a 160-page pdf listing a host of new approaches to powering transportation, at a series of presentations at the Newseum.

The report calls for the federal pre-emption of state autonomous vehicle regulations, the start of live testing of the vehicles in select communities, and an office at the Department of Transportation to lead development of the technology.

“We need uniformity and consistency of regulations across all 50 states so autonomous vehicles can be developed,” said Amitai Bin-Nun, director of Safe’s Autonomous Vehicle Initiative.

ElectricCharge1Safe was joined at its event by John Krafcik, chief of Google parent Alphabet’s self-driving cars group, along with executives from Nvidia, producer of graphic processing units; Peloton, groundbreaker in truck platooning research; and Moovel, Daimler’s urban mobility operator.

Safe advocates for America’s energy security, arguing the country’s transportation sector is too dependent on foreign oil. Instead, the “widespread adoption of plug-in electric vehicles would put an end to oil’s stranglehold on the U.S. transportation system,” according to its website.

Safe’s Energy Security Leadership Council is led by Frederick Smith, president and CEO of FedEx Corp., and General James Conway, a retired Marine Corps Commandant.

Safe has set a goal of reducing oil demand by 50 percent by 2040, and autonomous vehicles are central to that objective, Conway said.

“I would argue that we probably don’t get there unless the autonomous vehicle movement succeeds and becomes our mainstay,” said Conway, according to Safe’s The Verge news source.

Safe’s national strategy paper comes amidst a contentious debate over driverless regulations in California, a leading autonomous vehicle center.

Last December the state’s Department of Motor Vehicles floated the idea of requiring drivers physically sitting behind steering wheels in driverless cars. Google responded the proposal failed to understand the point of the vehicles, and didn’t recognize the capabilities of the technology.

Soon thereafter, the National Highway Traffic Safety Administration (NHTSA) pledged to release this summer guidelines for the states on autonomous vehicles.

Since then, the California State Legislature has considered several proposals that sought to limit the authority of the state DMV.

THREE REG CHANNELS

Most states haven’t taken a hard look of driverless technology. As of April, eight states and the District of Columbia are either allowing testing of the technology on their roads, or are conducting research on the topic, according to the National Conference of State Legislatures.

“We don’t know where states will wind up. They might include (requirements) for a driver and a steering wheel,” said Bin-Nun. “Designing a vehicle for different states is very difficult for the auto OEMs.”

Safe believes driverless oversight should be organized in three channels, said Bin-Nun.

First, regulations on vehicle hardware should continue to be set at the federal level, while states should continue to control local licensing, insurance, traffic laws, and driver-for-hire rules, he said.

Third, a federal office should regulate autonomous vehicle safety rules, said Bin-Nun.

Safe last year created its autonomous vehicle task force and ramped up its promotion of electric-engine equipped autonomous vehicles (See “Autonomous Cars = Lower Oil Imports”). Bin-Nun became director of the department in February.

A shift to electric-powered vehicles would reduce the use of gas-powered internal-combustion engine (ICE) vehicles.

In contrast, electric vehicles get charged by power supplied by the electric power industry. Domestic energy sources coal, natural gas, nuclear plants, hydro plants, and wind and solar provide the fuel for electric utilities, according a study from The Washington Post.

Photos: Electric car reloading/recharging, 2011, by Ludovic Hirlimann; Foto e vide di tutti I modelli, 2015, by Automobile Italia.

2016_05_20-D20-Weekly-Stock-Index

Nvidia Does it Again, Sends D20 Higher

With 11 gainers and nine losers, the Driverless Transportation (D20) Stock Index edged up 0.9 percent last week to 145.10, beating the Dow and S&P 500 once again. The Dow dropped 34.4 points to close at 17500.94 while the S&P 500 crept up 5.7 points to finish Friday at 2052.32.

For the second consecutive week, Nvidia (NVDA), a leading maker of Graphic Processing Units or Chips, led all D20 stocks with an 8.2 percent price jump. Nvidia’s latest consumer product, the GTX 1080, sold out within minutes of its availability on Amazon.

Electric vehicle OEM Tesla (TSLA) also had a strong week, with its stock price jumping $12.67, or 6.1 percent, to close at $220.28. Tesla continues to enjoy favorable press about advanced orders on its newly announced Model 3. Valeo (VLEEY), the French auto parts maker, was the D20’s biggest loser, dropping $4.96, or 6.3 percent, to end the week at $73.76.

Visit the Driverless Transportation D20 Stock Index page to learn more about it and its component stocks.

uber3

Uber Testing Self-Driving Live in Pittsburgh

Burney Simpson

Uber is testing self-driving cars on Pittsburgh roads, and it took a local reporter for a ride recently with John Bares, chief of the company’s local office.

Pittsburgh, in west central Pennsylvania, represents typical North American driving for many. It has four-season weather, is known for its hilly streets, and the area is a combination of older urban and open suburban roads.

“We have the world’s best test site right at our doorstep,” Bares told the Pittsburg Tribune. “We view it as, it’s not quite Everest, but it’s a hard mountain … but the beautiful thing is we do have that mountain right out of our front door to climb.”

Tech Crunch reports that Uber’s hybrid Ford Fusion is equipped with multiple cameras, sensors and lasers that can ‘see’ as far as 100 meters in all directions.

A human is in the driver’s seat at all times during the tests, as required by Pennsylvania law.

The Tribune reports that Uber has been testing the cars on Pittsburgh’s roads for several weeks but that this is the first public confirmation of the live tests.

The car can perform standard driving tasks on its own. It can detect double-parked cars, pedestrians, bicyclists, and other hazards.

The Fusions are programmed to beep when switching to human-driver mode, or when it senses something it doesn’t understand.

Uber created its Advanced Technology Center in Pittsburgh near the start of 2015. It soon hired several dozen researchers from Carnegie Mellon’s National Robotics Center, including Bares, its leader at the time.

Uber announced the live tests in a blog post. The post noted that self-driving vehicles have the potential to save the lives of the nearly 1.3 million people that die every year in car accidents.

“While Uber is still in the early days of our self-driving efforts, every day of testing leads to improvements. Right now we’re focused on getting the technology right and ensuring it’s safe for everyone on the road,” according to the post. “We’ve informed local officials and law enforcement about our testing in Pittsburgh, and our work would not be possible without the support we’ve received from the region’s leaders.”

 

Photo by Uber.

Otto self-driving truck

Former Employees From Google, Apple, Tesla Start ‘Otto,’ Develop Equipment for Self-Driving Trucks

Jennifer van der Kleut

A group of 40 former employees of top-notch firms like Google, Apple, Tesla, Cruise Automation, Nokia’s HERE and others have banded together to form Otto, a company that aims to outfit commercial trucks with equipment that turns them into self-driving vehicles.

Otto is working to develop a hardware kit that, once installed in a freight truck, would enable the vehicle to drive autonomously. The equipment could be purchased and then installed at either a service center, or possible by the truck’s manufacturer if Otto is able to establish manufacture partnerships, reports The Verge.

Two of Otto’s founders-Anthony Levandowski, who led Google’s self-driving car division, and Lior Ron, who led Google Maps-said in a blog post that commercial trucks are ripe with problems and inefficiencies that they believe autonomous driving could help solve.

“…They cause a large number of fatalities, are inefficient and, to top it off, there’s an increasing shortage of drivers. That creates the perfect storm for a tech-based solution, Otto’s founders believe,” TechCrunch reports.

Initially, Otto will focus on highway driving by the trucks they outfit. Drivers will still be responsible for navigating surface streets, and for loading and unloading the trucks as usual.

One thing that is unclear, The Verge explains, is whether the fact that the human in the truck does not have to operate the truck the majority of the time-highway driving makes up the bulk of a commercial truck’s travels-will allow trucking companies to get around laws that minimizes the number of hours trucking employees can work.

“…In theory, an Otto-equipped truck might be able to safely operate for many more hours than a human who is always in full control, but [Lior Ron] says they’ll have to work with regulators to prove that out,” The Verge explained.

TechCrunch reports that Otto initially started out developing driver assistance systems, that aim to make driving a truck more safe. That philosophy carries over into the company’s self-driving equipment.

“…Among many things, they aim to let drivers safely take a sleep break while leaving their truck driving autonomously,” TechCrunch said.

To start with, Otto is testing on Volvo VNL 780 trucks, but The Verge reports that they eventually hope to work with many Class 8 trucks, which are the largest, heaviest trucks on American roads.

didi-chuxing

Apple Invests $1 Billion in Didi Chuxing, the ‘Uber’ of China

Jennifer van der Kleut

Apple made a decision last week that has many industry experts scratching their heads-they announced the company has invested $1 billion in a ride-hailing company called Didi Chuxing, which many call the Uber of China.

It’s an unprecedented move that has left many asking, why?

The Washington Post has two theories.

Firstly, the Post explains that Apple has billions in revenue tied up overseas, and bringing that money back to the U.S.-such as, by investing in an American company-would come with a costly tax bill.

Secondly, we’ve all heard the rumors that Apple is quietly working behind the scenes to nab a piece of the driverless transportation pie. By investing in Didi Chuxing, Apple is looking toward making progress on that goal.

There’s even a third reason. Didi Chuxing has made no secret of their goal of surpassing other countries like the U.S. when it comes to automotive and technological innovation. By partnering up with Didi Chuxing, Apple is joining forces with one of its biggest potential competitors, as China is second only to the U.S. in those industries.

Xinhua Finance Agency reports that Didi Chuxing completed 1.43 billion rides in China in 2015.

The Post also theorizes that Apple’s monumental investment in a Chinese company will help ease tensions with the Chinese government. Just last month, Apple’s iTunes and iBooks stores were shut down across China over regulatory arguments. In addition, sales of Apple iPhones in Asia have declined by at least 26 percent in the past year.

Though Apple has been largely silent as to their reasons behind the $1-billion investment, CEO Tim Cook did tell Reuters, “We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market.”

2016_05_13-D20-vs-Dow-SnP-percentage-change-since-08_28_2015

Nvidia Powers D20 Index Gain

Leading Graphics Processing Unit provider Nvidia (NVDA) almost single-handedly powers the D20 to a slight gain despite losers outnumbering gainers almost two to one.

The Driverless Transportation (D20) Stock Index eked out a gain of 0.3 percent last week, closing Friday at 143.80. Nvidia soared on a whopping 16 percent price increase, finishing up $5.65 to $40.98. The dramatic jump happened after Nvidia announced quarterly revenue and earnings results that beat expectations due to Tesla’s (TSLA) growing demand for Nvidia’s chips. Nvidia’s stock price has risen 88 percent since September 4, 2015, making it the leading price gainer for the D20.

The Dow dropped 1.2 percent to close at 17535.32 and the S&P 500 lost 0.5 percent to end the week at 2046.61, marking one of the rare weeks this year when the D20 went in an opposite direction from the Dow and S&P. Mobileye (MBLY) was up 4.4 percent on rumors that it had inked two more deals to help a major automaker create driverless cars. Nissan (NSANY) was up 4 percent on news that it plans to acquire 34 percent of troubled Mitsubishi.

Visit the Driverless Transportation D20 Stock Index page to learn more about it and its component stocks.

PTVHybridsimulation_02

Europe Gears Up to Drive Driverless

Smart Highways

A member of the corporate board for the Organization for Economic Co-operation and Development (OECD) says that autonomous vehicles will make an “incredible” difference to cities around the world.

Miller Crockart is a director of German modeling firm PTV who sits on the board with representatives from Ford, Google, Uber, Volvo, Nissan, Exxon Mobile, and Michelin. The board works on transportation issues with officials from leading industrial governments.

Based in Karlsruhe, Germany, PTV provides software for urban mobility, logistics and traffic engineering. Karlsruhe has been called the European Silicon Valley.

In an interview with British magazine Smart Highways, he explained how the board looked at the demand on cities if autonomous vehicles were introduced:

“We looked at a medium-sized town and asked what would happen if we replaced all the trips that were taken with shared autonomous vehicles and high-capacity public transport and the numbers that we were coming out with were incredible,” he said.

“If we looked at a 24 hour period we could undertake all the trips with only 10 per cent of the vehicles and even in the peak hours we would only need 35 per cent of the vehicles currently on the road to facilitate all those trips so that sets a macroscopic perspective on what the future can hold.

“Of course there’s a transitionary period to get to that and that’s where everyone has to start planning for that so every city in the world should have to look at its demand plans and its investment plans, things are going to radically alter with these disruptive technologies coming through.

“We’ve built 30 year models based on the combustion engine and Mr. and Mrs. Smith driving their vehicle, well that’s not going to be the way it is in 30 years’ time – it’s not. Uber, the Lyfts, they’re already here, autonomous vehicles, they’re here – I sat in one the other day and the manufacturers are full steam ahead, that won’t change.

“The transitionary period might take a lot longer because there’s regulation, that needs to be put in place, there’s the liability issue but we’re talking about that at the OECD level so when you’re talking about it, it’s not that far away from saying “plug it in, here it goes”.

FACT, NOT BUZZWORDS

“What I’ve found here is there are companies – there’s one just across the road, I’m looking at the building now, FZI - which is a research institute which is doing some incredible things with autonomous vehicles,” he says. “They’re even building some of the moon landing equipment, but you would never know that.  I’ve sat here for four years and you slowly learn that there are these little nuggets of gold just sitting around my building alone. There’s Init doing all the stuff for commuter technology, you’ve got Bosch here, and you’ve got a lot of small start-ups that have all created hugely popular technologies but there is this culture in Europe where it’s almost frowned upon to eulogize yourself, sometimes in Europe it’s construed as arrogant where in other countries it’s construed as good marketing and that’s a frustration for me.

“I hear a lot of noises coming out of Silicon Valley that they have the latest and greatest solution for everything and we’ve been doing it for the last 30 years! People talk about smart cities or data analytics, well we’ve been doing data analytics for the last 30 years and we have a hugely strong pedigree in that topic – we know what data can be used, what quality there should be, how to fuse different sources, how to clean it and extrapolate it with simulation and prediction. The challenge for us from a marketing perspective is to stand up now for the silicon valley of Europe which is here. We’ll be more vocal but we’ll do it on fact rather than the latest buzzwords.”