Google Inc. GOOGL recently started testing its latest prototype self-driving cars on public roads around its Mountain View, CA headquarters.
All these cars drove up to 25 miles per hour and had safety drivers aboard who could take over the wheel, if needed.
Google has been working on self-driving vehicles since 2010. The new prototype vehicles, assembled by auto supplier Roush Industries in Detroit, use the same software on which its existing self-driving Lexus RX450h sport utility vehicles run. So far, Google has only built 25 vehicles all of which have received permission from California's Department of Motor Vehicles to be driven on neighborhood roads. However, in due course, the Internet search giant will build between 50 and 100 prototypes and widen testing to hillier and rainier sites.
The model includes everything required for fully autonomous driving and the necessary parts so that engineers can take over driving if need be. It has an autonomous driving system comprising a computer and sensors to typical car parts like brakes pedals, lights, removable accelerator pedals and steering wheels, unlike the rudimentary version it released in May last year. The two-seater model did not have the typical features of a car such as steering wheel, headlights or brakes and had to be completely operated by the vehicle’s computer.
Earlier this month, Google launched a website specifically for the self-driving car offering information about the test drives, including regular updates on progress and incidents. So far, Google has reported that these cars have been involved in 11 minor traffic accidents in California.
Tech giants are trying to enter the automotive industry because they predict a major transportation revolution that will change how people operate cars. In fact, Baidu BIDU is investing around $600 million in a car-hailing app Uber Technologies Inc. to extend its penetration in local services in China. Reports of Google’s arch rival Apple Inc. AAPL working on its own electric car project, likely to be launched by 2020, are also making the rounds.
Therefore, with increasing competition, Google needs to speed up the development its self-driving cars. The latest move is an important development for Google. Such driverless cars could eventually become an important revenue source for the company.
Google currently has a Zacks Rank #3 (Hold). A better-ranked stock is Blue Calypso, Inc. BCYP with a Zacks Rank #2 (Buy).
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