Should You Invest In Elon Musk’s SAV Technology?
Reading Time: 4 minutesElon Musk is no stranger to having all eyes on him. After all, with so many novel ideas, it is no wonder that Musk is always in the limelight. From controversial to downright impossible, his endeavors have a habit of luring potential investors. And rightfully so. Although there is no end to Elon Musk’s projects that we can discuss, one of particular importance is his SAV technology. The term itself is an acronym that, once explained, immediately gives investors an idea of what this new technology is. SAV stands for shared autonomous vehicles. It’s all clear, right? Kind of. Musk’s SAV project aims to use the vehicles of Tesla owners (when they are not being driven by their owners, of course) as a robotaxi service of sorts. But wait, this sounds like a bit of an odd idea, does it not? Well, it is. However, the same can be said for most of Musk’s inventions, and more than half of them proved lucrative investments for those who were willing to take a risk. Today, we will look into whether you should invest in this revolutionary proposal or whether it might be better to skip SAV stock, for now. So, is this Elon Musk’s next big thing that you should invest in? Is it SAVstainable? Musk’s SAV technology seems to have its fair share of problems, even in its initial stages of development. At its core, SAV will have to compete with services such as Uber and Lyft. Although it is set up differently, the target market is the same. It is no secret that Elon Musk’s projects have been able to enter and thrive in what analysts would call oversaturated markets. If anything, this market is not oversaturated, but just saturated. The market, however, is not the biggest problem. The SAV project stock will depend on a problematic human factor – willingness. Elon Musk’s SAV technology solves part of the human problem by using Tesla’s autonomous driving mode. That, nevertheless, means that human owners will still have to allow their cars to be used in SAV mode. The owners will be compensated, but their cars will still rack up considerable mileage. For some, it will be worth it. For others, not so much. As a potential investor, you should place your bets early, but not too early. If you think that people will be willing to share their car for a given compensation, then SAV might be worth your time. Still, waiting for more specific information is a valid option. Lastly, we should note that in 2019, there were approximately 31.4 million driverless cars in circulation. In 2020, that number rose to 35.02 million. As the number of self-driving cars increases, so will the sustainability of Elon Musk’s SAV technology. There is even talk of a Tesla secret supplier that will benefit immensely from this increase in self-driving cars. How is this connected to Elon Musk’s SAV technology? Well… To Invest To invest in SAV technology is to invest in Tesla’s secret supplier. Before we go on with the details of how this investment would work, future investors should know that investing in SAV will mean investing in Tesla. Does that mean that you will solely invest in Tesla? No. After all, investing in Tesla, in itself, is nothing novel. To capitalize on this opportunity, as an investor, you will be investing in one or a few of Tesla’s suppliers, which could prove to be instrumental in carrying out this autonomous vehicle project. All cars, including Tesla cars, are made up of various bits and pieces. These bits and pieces, depending on their complexity, often need specialized suppliers. To us, investors, they might seem like trivial items, but most of these trivialities have entire supply chains dedicated to them. One example is a camera. We are specifically talking about the camera that Teslas have behind their windshield. The camera in question is used to capture everything that is in front of the car. These cameras need a few components to work, and one of them is an image sensor. The company that makes those sensors has shares that are significantly lower than Tesla’s shares. The same goes for most of its suppliers. Companies like this one are in a good position to raise their value by simply existing in a time where electric vehicles depend on AI. As an investor, you should look for companies that supply Tesla with valuable parts. These are parts that make electric vehicles what they are – revolutionary. Is it an easy task? No. If it were, every single investor would already be on it. We must not forget that at its core, investing is research. Afterword Investing in SAV project stock is not a direct investment. It is an investment that requires dedicated research and in-depth knowledge of the market. SAV could be Elon Musk’s next big thing. After all, there is a reason why the topic has gained so much traction over the last year. If you are truly interested in SAV stock, you are going to have to put in the work. Is it possible to find out which suppliers Tesla depends on? Yes. Is it an easy task? It depends. If you are an investor that enjoys learning the ins and outs of your investment, this might just be the right opportunity for you. FAQ What is SAV technology?SAV technology is an acronym. It stands for shared autonomous vehicles. In short, Elon Musk’s SAV technology is a project that should make use of Tesla self-driving vehicles to act as a robotaxi service of sorts. How to buy Elon Musk SAV stock?To buy SAV stock, you need to put in the work, as this is not a direct investment. First, you need to find out which parts Tesla relies on. Then, you need to place your bet on the right supplier. After this, you have successfully invested in SAV stock.