Should You Invest in TaaS?

Investors are always on the lookout for the next best thing, and former hedge fund manager Whitney Tilson claims to have discovered it in the form of an up-and-coming tech trend—TaaS.

TaaS, or Transportation as a Service, combines two reasonably new but futuristic concepts—electric vehicles and self-driving technology. This combination will result in a transport model of electric, autonomous cars with longer battery life and increased longevity compared to today’s gas-powered vehicles.

These vehicles have the potential to change the way we travel. Companies such as Uber are already exploring new services by offering car rentals, which will undoubtedly pave the way for self-driving transport in the future. Besides transport, autonomous cars can also provide other services, such as food delivery.

TaaS has already been present in our lives for some time. Regular electric cars are popular among American car buyers, and new models are being developed worldwide. As the electric car industry rapidly develops, more efficient batteries are designed. This reduces the charging time and increases the driving time.

Tilson compares the expected life-changing potential of this sector with the internet. According to his predictions, much like the internet, TaaS will make a significant impact in various fields and change our everyday lives—

  • fewer people will own and drive cars
  • car accident rates will plummet
  • less money will be spent on transportation (due to its cost-effectiveness)
  • fewer cars on the road (reduced traffic)
  • lower demand for parking lots (freeing up space)
  • many car manufacturers will go out of business
  • oil demand will drop drastically (lowering its price)
  • drop in real-estate values (due to no dependency on public transport access)

Everything you just read might sound like a bold claim, but, according to Tilson, this is perfectly viable and will happen faster than expected. In fact, he predicts that by the end of 2021, at least half a dozen of US cities will have driverless taxi services.

The impending dominance of autonomous vehicles isn’t limited to the US—countries such as China and Singapore have been incorporating them into the everyday lives of their citizens at an even faster rate. The spread is worldwide.

Whitney Tilson Advises Buying TaaS Shares

If you’re wondering who Whitney Tilson is and why you should trust him, he has a solid track record of accurate predictions and smart investments over the years, such as Netflix, Apple, and Amazon.

It’s safe to say that he has a talent for seeing the potential in something, and his latest investment recommendation is TaaS. Even though this industry is experiencing growth at the moment, Tilson believes that this steady growth will eventually (and very soon) become exponential, so the time to invest is now. He says, “My point is, autonomous vehicles are not the future… they are here right now. This is how every big tech trend unfolds… first as a trickle… and then as a tidal wave.”

Logically, he advises buying shares with the “big players” in the electric vehicle industry, the likes of Tesla, NIO, Nikola, Plug Power, Workhorse, ElectraMeccanica Vehicles, Blink Charging, etc.

Tilson specifically singles out Alphabet-owned Waymo, the leader in autonomous vehicles, as a good company to buy shares in. He suggests buying Alphabet stocks as well.

Finally, his advice is to also invest in the technology used to make TaaS possible—companies producing batteries, EV charging stations, etc.

Whether you’re investment-savvy or use special tools to help you, make sure to reassess your investment choices and jump on the TaaS bandwagon before it’s too late.

ABOUT AUTHOR

My eyes rarely take a break from staring at my laptop's screen—I am Big Brother, scanning the web for news and information worth sharing. Full transparency—a substantial chunk of my screentime is also dedicated to watching TV shows, but balance is key, right? Writing is how I choose to share my findings with the world while keeping my love of language and creativity alive.

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