Navigant Research has compiled a new report on 19 companies working on automated driving systems, and investors may be surprised to see Tesla Inc (Nasdaq: TSLA) in dead last place in the driverless car race.
Navigant ranked the 19 major companies developing AV technology based on 10 criteria, including vision, market strategy, partnerships, production strategy, technology, product quality and staying power. According to the report, General Motors Co. ( GM) and Waymo, the auto unit of Alphabet ( GOOG, GOOGL), are the top two AV investment opportunities in the market today.
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Tesla and Apple ( AAPL) are the two biggest laggards in the AV race, according to Navigant’s rankings.
Investors are acutely aware of Tesla’s production and distribution disadvantages compared to legacy automakers like GM, but Navigant is also highly critical of Tesla’s technology.
“The autopilot system on current products has stagnated and, in many respects, regressed since it was first launched in late 2015,” Navigant says in the report, according to Ars Technica. “More than one year after launching V2, Autopilot still lacks some of the functionality of the original, and there are many anecdotal reports from owners of unpredictable behavior.”
Tesla’s first version of Autopilot relied heavily on technology from Mobileye, but Tesla ended its relationship with Mobileye in 2016. Mobileye has since been acquired by Intel Corp. ( INTC).
Navigant analysts aren’t the first to question Tesla’s driverless technology. in September, Bernstein analyst Max Warburton said Autopilot 2.0 was way behind schedule and did not have the full range of capabilities that the Mobileye-powered Autopilot 1.0 had.
“While Tesla has many advantages, we believe its self-driving capabilities are exaggerated,” Warburton said.
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Tesla has consistently been missing production targets for its Model 3 electric vehicle, and Deutsche Bank analyst Rod Lache says GM has taken an under-the-radar lead in the AV race. “GM’s AVs will be ready for commercial deployment, without human drivers, much sooner than widely expected (within quarters, not years), and potentially years ahead of competitors,” Lache said in September.
Deutsche Bank has a “hold” rating and $310 price target for Tesla. Bernstein has a “market perform” rating and $265 target for TSLA stock.
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Tesla Inc (TSLA) Is Dead Last In the Driverless Vehicle Race originally appeared on usnews.com
