10 Best Self Driving Car Stocks to Invest In

Published July 13, 2021 at 10:14 am EDT Updated August 19, 2026 at 5:08 am EDT

In this article, we will take a look at the 10 best self-driving car stocks to invest in.

Only a decade ago, the idea of seeing driverless cars roaming about on the streets would have seemed laughable and increasingly unrealistic, however today, that is not the case. Electric and autonomous vehicles are gradually beginning to take over the global stage, with companies like Tesla, Inc. (NASDAQ: TSLA), Ford Motor Company (NYSE: F), Alphabet Inc. (NASDAQ: GOOG), and General Motors Company (NYSE: GM) being some of the major players in the sector.

In light of the above, the global community has begun to witness rapid changes in the automobile industry as we know it. The first change is a shift from traditional to electric vehicles. Governments in the US are driving ahead this change by banning the sale of gasoline-powered vehicles in the near future. For instance, California banned the sale of gasoline cars after 2035, while President Biden’s administration has included $174 billion in their new infrastructure bill to aid the growth of the EV sector.

The second major change as reported by the Wall Street Journal relates to the emergence of vehicles that are not only electric but autonomous as well. Autonomous cars reportedly clocked about 2 million miles in test drives in California last year. Bloomberg has also reported that the market for self-driving vehicles is expected to reach 5.64 million units by 2024, growing at a CAGR of over 21% between 2020 and 2024. Hence, we can reasonably draw the conclusion that electric and autonomous cars are slowly, but surely, taking over the automobile market as demand for the vehicles continues to grow and governments and companies alike take initiative in helping the sector grow to unprecedented heights.

Keeping the above in mind, we have written this article listing the best self-driving car stocks to invest in, in light of the growing popularity of autonomous vehicles within consumer and investor circles alike. The stocks added to our list were selected on the basis of hedge fund popularity, fundamentals, analysts’ ratings, and future growth potential based on core business strengths.

Photo by Samuele Errico Piccarini on Unsplash

Despite the unchallenged and undeniable growth of the autonomous vehicle sector, it is becoming difficult to find the perfect self-driving car stocks to invest in, in the aftermath of the pandemic. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 28th, 2021, our monthly newsletter’s stock picks returned 206.8%, vs. 91.0% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Without further ado, let’s look at the 10 best self driving car stocks to invest in.

Best Self Driving Car Stocks to Invest In

10. Luminar Technologies, Inc. (NASDAQ: LAZR)

Number of Hedge Fund Holders: 12

Luminar Technologies, Inc. (NASDAQ: LAZR) is a vehicle sensor and software company. It has two segments: Autonomy Solutions, and Other Component Sales. The company’s technology and lidar sensors are used in autonomous vehicles, and it ranks 10th on our list of the best self driving car stocks to invest in.

On June 25th, Baird upgraded Luminar Technologies, Inc. to Outperform with a $30 price target, after the company’s lidar sensors were announced to be standardly used on Volvo’s EVs in 2022. The company’s CFO also commented that Luminar Technologies, Inc. would target profitability by 2024, and expects to end 2021 with more than the $485.7 million in liquidity it had in December 2020, and the $610.3 million figure from this March. In the first quarter of 2021, Luminar Technologies, Inc. had an EPS of -$0.08, missing estimates by -$0.04, while its $5.31 million revenue beat estimates by $0.48 million. The stock has also gained 118.68% in the past year.

By the end of the first quarter of 2021, 12 hedge funds out of the 866 tracked by Insider Monkey held stakes in Luminar Technologies, Inc. worth roughly $39.2 million. This is compared to 25 hedge fund holders in the previous quarter, with a total stake value of about $160 million. Like Tesla, Inc., Ford Motor Company, Alphabet Inc., and General Motors Company, this is a good stock to invest in.

9. Toyota Motor Corporation (NYSE: TM)

Number of Hedge Fund Holders: 18

Toyota Motor Corporation (NYSE: TM) is a manufacturer of passenger vehicles, minivans, and commercial vehicles and their parts and accessories. The company has a self-driving software by the name of Chauffeur, and it ranks 9th on our list of the best self driving car stocks to invest in.

This April, Toyota Motor Corporation announced its acquisition of Lyft’s autonomous vehicle division for $550 million. The company’s US sales also grew 46.7% in May to encompass 242,171 units, while its APV sales increased by 196% as well. In early June, Toyota Motor Corporation revealed its electric car model bZ4X in the US while highlighting its own aim to reach carbon neutrality by 2050. Toyota Motor Corporation has offered sales and income guidance for the year, expecting the former to rise 14% to 8.7 million units, and the latter to rise 2.4%.

In the fiscal fourth quarter of 2021, Toyota Motor Corporation had $69.44 billion in revenue, and the company has a gross profit margin of 17.76%. The stock has gained 15.48% in the past 6 months and 15.51% year to date.

By the end of the first quarter of 2021, 18 hedge funds out of the 866 tracked by Insider Monkey held stakes in Toyota Motor Corporation worth roughly $824 million. This is compared to 11 hedge fund holders in the previous quarter, with a total stake value of about $797 million. Like Tesla, Inc., Ford Motor Company, Alphabet Inc., and General Motors Company, this is a good stock to invest in.

8. Ford Motor Company (NYSE: F)

Number of Hedge Fund Holders: 49

Ford Motor Company is an automobile manufacturer selling Ford trucks, cars, sport utility vehicles, EVs, and Lincoln luxury vehicles across the world. The company is planning to launch its autonomous commercial business next year, with the vehicles being based on the Ford Escape Hybrid. It ranks 8th on our list of the best self driving car stocks to invest in.

This July, Ford Motor Company reported a 117% rise in its electric vehicle sales in June, while in the previous month, UBS raised its price target on Ford Motor Company shares from $13 to $16 as well.

On June 23rd, Ford Motor Company’s (NYSE: F) subsidiary Spin launched its electric scooter model, the S-100T. In the first quarter of 2021, Ford Motor Company had an EPS of $0.89, beating estimates by $0.68, while its $33.55 billion revenue represented a 7.06% growth year over year and beat estimates by $1.34 billion. The stock has a forward PE ratio of 11.59 and has gained 69.61% in the past 6 months and 75.59% year to date. The company has a gross profit margin of 8.07% as well.

By the end of the first quarter of 2021, 49 hedge funds out of the 866 tracked by Insider Monkey held stakes in Ford Motor Company worth roughly $2.19 billion. This is compared to 41 hedge fund holders in the previous quarter, with a total stake value of about $1.65 billion.

7. Aptiv PLC (NYSE: APTV)

Number of Hedge Fund Holders: 50

Aptiv PLC (NYSE: APTV) manufactures and sells vehicle components across the globe, and provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. The company ranks 7th on our list of the best self driving car stocks to invest in.

This May, Aptiv PLC was upgraded to Overweight by Morgan Stanley with a $205 price target allotted to the stock. In the first quarter of 2021, Aptiv PLC had an EPS of $1.06, beating estimates by $0.28, while its revenue of $4.02 billion, an increase of 24.71% year over year, beat estimates by $342.06 million. The company has a gross profit margin of 16.47% and the stock has gained 20.79% in the past 6 months and 19.45% year to date.

By the end of the first quarter of 2021, 50 hedge funds out of the 866 tracked by Insider Monkey held stakes in Aptiv PLC worth roughly $1.41 billion. This is compared to 44 hedge fund holders in the previous quarter, with a total stake value of about $1.35 billion. Like Tesla, Inc., Ford Motor Company, Alphabet Inc., and General Motors Company, this is a good stock to invest in.

Oakmark Funds, an investment management firm, mentioned Aptiv PLC in their first-quarter 2021 investor letter. Here’s what they said:

“Aptiv approached our estimates of intrinsic value and was, therefore, eliminated during the period. The company was longstanding investment of the Fund and produced successful outcomes. We continue to believe that Aptiv is a well-positioned auto supplier that is likely to continue outgrowing light vehicle production for the foreseeable future, but this dynamic is now more fully appreciated by the market.”

6. Tesla, Inc. (NASDAQ: TSLA)

Number of Hedge Fund Holders: 62

Tesla, Inc. is a manufacturer of EVs, energy generation, and storage systems in the US, China, and internationally. The company is expected to have Full Self-Driving Tech with Level 5 autonomy by the end of this year. Tesla, Inc. ranks 6th on our list of the best self driving car stocks to invest in.

This July, Goldman Sachs analyst Mark Delaney commented on Tesla, Inc.’s (NASDAQ: TSLA) preliminary Q2 deliveries, stating that the 201,000 deliveries and 206,000 produced vehicles were in line with or surpassed investor expectations from the company. Delaney is optimistic about Tesla, Inc.’s (NASDAQ: TSLA) deliveries and productions now, expecting them to further improve in the third quarter, and has a full-year 2021 deliveries estimate of 875,000 for the company. The firm also has a Buy rating and an $860 price target on Tesla, Inc..

On June 24th, Tesla, Inc. confirmed that it would be opening its Supercharger network to other automakers by September next year, and the company currently has over 25,000 Superchargers installed in more than 2,700 stations across the globe. In the first quarter of 2021, Tesla, Inc. had an EPS of $0.93, beating estimates by $0.15, while its revenue of $10.39 billion, up 73.58% year over year, beat estimates by $112.38 million. The company has a gross profit margin of 21.18% and Tesla, Inc. has gained 3.41% in the past 6 months.

By the end of the first quarter of 2021, 62 hedge funds out of the 866 tracked by Insider Monkey held stakes in Tesla, Inc. worth roughly $10 billion. This is compared to 68 hedge fund holders in the previous quarter, with a total stake value of about $12.3 billion.

5. NVIDIA Corporation (NASDAQ: NVDA)

Number of Hedge Fund Holders: 80

NVIDIA Corporation (NASDAQ: NVDA) is a visual computing company operating worldwide and manufacturing technology used in electric and autonomous vehicles. The company ranks 5th on our list of the best self driving car stocks to invest in.

On June 28th, NVIDIA Corporation announced their partnership with Google Cloud for an AI-on-5G Innovation Lab, while Citigroup analysts also raised their probability estimates for the company’s $40 billion ARM deal to go through from 10% to 30%. Wells Fargo upped the price target for the stock to $875 this month as well, retaining their Overweight rating, in light of NVIDIA Corporation’s (NASDAQ: NVDA) AI expansion. In their fiscal first quarter of 2022 report, NVIDIA Corporation had an EPS of $3.66, beating estimates by $0.38. The company’s revenue of $5.66 billion, up 83.8% year over year, beat estimates by $252.24 million. The stock has gained 54.4% in the past 6 months and 52.4% year to date, and the company’s gross profit margin is 63.26%.

By the end of the first quarter of 2021, 80 hedge funds out of the 866 tracked by Insider Monkey held stakes in NVIDIA Corporation worth roughly $6.2 billion. This is compared to 88 hedge fund holders in the previous quarter, with a total stake value of about $8.69 billion.

SaltLight Capital Management, an investment management firm, mentioned NVIDIA Corporation in their first-quarter 2021 investor letter. Here‘s what they said:

“In this letter, we highlight one ‘bet’: a follow-up on our December letter where we wrote extensively about our broad thesis about the Artificial Intelligence opportunity. We present a case study of NVIDIA who we believe is delightfully positioned to capture this opportunity.

Unfortunately, for some readers, again this letter tends to overflow in technical IT jargon. Part of our mission is to educate co-investors about our thinking over the long term. We attempt our best to moderate complexity, however, sometimes the technical analysis is the only way to reinforce the thesis.” (Click here to see the full text)

4. General Motors Company (NYSE: GM)

Number of Hedge Fund Holders: 86

General Motors Company is an automobile manufacturer selling vehicles and automobile parts across the world. The company’s subsidiary Cruise is a majority-owned autonomous vehicle manufacturer. It ranks 4th on our list of the best self driving car stocks to invest in.

On June 23rd, General Motors Company and MP2 Energy announced their partnership, aiming to provide renewable electricity in Texas alongside free overnight charging for residents owning GM electric cars. Barclays has also raised the price target for the stock to $74 versus the previous $70 target. In the first quarter of 2021, General Motors Company had an EPS of $2.25, beating estimates by $1.20. Its revenue for the quarter was $32.47 billion, missing estimates by -$432.32 million. The stock has a forward PE ratio of 9.43 and has gained 41.06% in the past 6 months and 44.75% year to date. The company has a gross profit margin of 13.57%.

By the end of the first quarter of 2021, 86 hedge funds out of the 866 tracked by Insider Monkey held stakes in General Motors Company worth roughly $8.05 billion. This is compared to 70 hedge fund holders in the previous quarter, with a total stake value of about $6.33 billion.

3. Baidu, Inc. (NASDAQ: BIDU)

Number of Hedge Fund Holders: 89

Baidu, Inc. (NASDAQ: BIDU) is a company providing internet search services mainly in China. The company owns Apollo, which is an autonomous vehicle company operating in China and operates an autonomous taxi service in the country. It ranks 3rd on our list of the best self driving car stocks to invest in.

On June 17th, Baidu, Inc. announced its partnership with BAIC Group to release the Apollo Moon with the company. The Apollo Moon is a new robotaxi model due to be mass-produced. This May, York Capital initiated a position in Baidu, Inc., alongside Soros Fund Management which took a stake in the company with 353,795 shares. In the first quarter of 2021, Baidu, Inc. had an EPS of $1.93, beating estimates by $0.32. The company’s revenue came in at $4.38 billion, up 38.08% year over year and beating estimates by $148.39 million. It has a gross profit margin of 51.79%. Baidu, Inc. has gained 5.18% in the past 6 months as well.

By the end of the first quarter of 2021, 89 hedge funds out of the 866 tracked by Insider Monkey held stakes in Baidu, Inc. worth roughly $6.57 billion. This is compared to 51 hedge fund holders in the previous quarter, with a total stake value of about $4.63 billion.

2. Apple Inc. (NASDAQ: AAPL)

Number of Hedge Fund Holders: 127

Apple Inc. (NASDAQ: AAPL) is a manufacturer of electronic devices such as smartphones, computers, tablets, and accessories. The company has time and again indicated its intention to enter the autonomous vehicle sector and the Apple Self-Driving car is expected to be launched in 2024. The company ranks 2nd on our list of the best self driving car stocks to invest in.

On June 23rd, Apple Inc.’s (NASDAQ: AAPL) senior vice president of Retail and People was reported to have said that the company’s stores had opened across the globe. Apple Inc. has also announced that it may be spending about $300 million on Google Cloud Storage this year as it is increasing user data stored on the platform. This would signify a 50% increase in the amount the company spends on Google Cloud Services.

In their fiscal second-quarter 2021 report, Apple Inc. had an EPS of $1.4, beating estimates by $0.41. Its revenue of $89.58 billion was up 53.63% year over year and beat estimates by $12.3 billion. The stock gained 0.10% in the past 6 months and 4.33% year to date, and Apple Inc. has a gross profit margin of 39.88%.

By the end of the first quarter of 2021, 127 hedge funds out of the 866 tracked by Insider Monkey held stakes in Apple Inc. worth roughly $130.9 billion. This is compared to 146 hedge fund holders in the previous quarter.

ClearBridge Investments, an investment management firm, mentioned Apple Inc. in their first quarter 2021 investor letter. Here’s what they said:

“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”

1. Alphabet Inc. (NASDAQ: GOOG)

Number of Hedge Fund Holders: 159

Alphabet Inc. is a tech company providing online advertising services in the US and internationally. The company owns Waymo, which focuses on autonomous driving and car technology. It ranks 1st on our list of the best self driving car stocks to invest in.

Back in 2014, Apple Inc. began working on its Project Titan, bringing in over a thousand car experts and engineers with EV manufacturing expertise, and as of 2021, the company’s physical car project is still progressing, while Apple Inc. is continuing to test its self-driving software and has also received an autonomous testing permit from the DMV.

Apple Inc. has announced that it would be spending about $300 million on Google Cloud Storage this year, making the company the largest customer for the service. In the first quarter of 2021, Alphabet Inc. had an EPS of $26.29, beating estimates by $10.63, while its revenue of $55.31 billion, up 34.39% year over year, beat estimates by $3.62 billion. The stock gained 44.15% in the past 6 months and 46.69% year to date. Alphabet Inc. has a gross profit margin of 54.32%.

By the end of the first quarter of 2021, 159 hedge funds out of the 866 tracked by Insider Monkey held stakes in Alphabet Inc. worth roughly $29.08 billion. This is compared to 157 hedge fund holders in the previous quarter, with a total stake value of about $20.57 billion.

Artisan Partners, a high value-added investment management firm, mentioned Alphabet Inc. in their first-quarter 2021 investor letter. Here’s what they said:

“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”

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