Don't Drink the Google Kool-aid: Autonomy's Limits in Three Sips

Please welcome TTAC’s newest contributor, Professor Mike Smitka. Mr. Smitka teaches a course on the Economics of the Auto Industry at Washington and Lee University in Lexington, Virginia and is regarded as an authority on the automotive world. He also makes time to read and comment on TTAC.

Google’s senior executives are busily touting the wonders of autonomous vehicles. There’s the technological marvel, at least in the eyes of Silicon Valley. There are the economic benefits – no more congestion, no more accidents. Wonder of wonders! – and great for the Google empire, and for its stock price.

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  • Slavuta "Users’ awareness of Chinese EV brands is surprising, given that none of the companies sell vehicles here." --- Globalism is a coin with 2 sides"American automakers like Tesla have long been aware of the threat from Chinese auto companies." --- Does "threat" means 'competition'?
  • Jeff S Not having a marketing department or marketing a product in the long run is not a good strategy for Tesla. Eventually we will have BYD and other Chinese EV companies in the US. Tesla is now a car company and less of a tech company and they will have to act more like a car company if they are to compete with BYD and other EV manufacturers. Tesla is no longer the only EV company.
  • Jmo2 “The only problem is that fatal accidents have generally trended upward the more of the above safety systems came online.”Obviously you’ve accounted for the advent of smartphones in your analysis? Walk me through it…
  • JMII For what is worth (not much)... I was just in Sao Paulo Brazil for a week and saw several BYD vehicles - they were pretty decent looking. I asked my Brazilian co-workers about them and he said they have good reputation as being a nice, high-tech type of car. In Brazil I am sure the price point is the main draw but apparently the tech of these cars makes them desirable too.
  • SCE to AUX Since the house is in better condition than the car company, I'd take the house.