Why Tesla Motors Inc (TSLA), Microsoft Corporation (MSFT) and Three Other Stocks Are in Spotlight Today

Investors are keeping an eye on Tesla Motors Inc (NASDAQ:TSLA), Mobileye NV (NYSE:MBLY), and Alphabet Inc (NASDAQ:GOOG) after Federal regulators issued guidelines on Monday for the automated vehicle industry, making it clear that the government thought America’s highways and roadways would be safer if more vehicles were driven by software/machines rather than people. According to the CDC, 33,700 people died from motor vehicle accidents in 2014, making vehicle crashes one of the leading causes of death in the United States.

The director of the National Economic Council Jeffrey Zients was quoted as saying by The New York Tymes: “We envision in the future, you can take your hands off the wheel, and your commute becomes restful or productive instead of frustrating and exhausting’. He added that automated vehicles “will save time, money and lives.”

The government’s tacit approval of automated/semi-automated driving technology is good for Mobileye NV (NYSE:MBLY), which currently has a leading market share in the sector. The news also partly vindicates Elon Musk, who has said that automated driving will save more lives on balance than it will cost. Musk’s Tesla has been criticized before for adopting the latest semi-self-driving technology too quickly. Not to be left out, the news is also good news for Alphabet, which has researched self-driving cars for many years now.

In terms of favorite stocks among the smart money crowd, Alphabet Inc (NASDAQ:GOOG) wins a gold medal, with 135 funds from our database holding class A shares and 126 funds reporting a bullish position in the class C stock as of the end of June. Elon Musk’s Tesla Motors Inc (NASDAQ:TSLA) wins the silver, with 36 top funds owning shares during the same time frame. Given its smaller size, Mobileye NV (NYSE:MBLY) is third on our list, with 25 funds tracked by Insider Monkey reporting stakes as of the end of the second quarter.

Disclosure: none