Right now, as expectations for driverless cars are starting to bud, if not inflate, it is best to remember perhaps the most important lesson taught by the last 25 years of investing: Markets mature at their own pace. When funding and expectations grossly outpace development, a market gets oversold and collapses.
So it is with caution that investors should buy the Kindle publication “Driverless Cars: Trillions Are Up For Grabs.”
Specifically, the authors, business consultants Chunka Mui and Paul B. Carroll, claim that $2 trillion will be created or saved every year through the adoption of autonomous cars in the United States.
An estimated $400 billion alone will be saved annually through fewer auto accidents, according to Mui and Carroll.
Despite the cheerleading that buoys this book, Mui still recommends caution when investing in driverless cars.
“This is not the time to burn the ships” and switch wholesale to the new tech, he says. Mui, who co-founded with Carroll the business consulting firm The Devil’s Advocate Group, views “Driverless Cars” as more of an examination of today’s “competitive dynamics” than an investment primer.
Beware the buzz
While not particularly deep or probing, “Driverless Cars” delivers on the likely strategies and the impacts on specific industries, including carmakers, suppliers, auto insurers, energy companies and others that share in car-related revenue.
But first, this book, which began as seven popular Forbes columns written by the authors, creates some hurdles for itself.