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Technology Stocks : Investing in Exponential Growth

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From: Paul H. Christiansen9/13/2018 6:46:00 AM
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Driverless Hype Collides With Merciless Reality

Mercedes-Benz unveiled its dream of a fully autonomous multipurpose vehicle this week. The announcement was full of buzzwords— the modular Vision Urbanetic “enables on-demand, sustainable and efficient movement of people and goods” and “reduces traffic flows, relieves inner-city infrastructures and contributes to an improved quality of urban life.”

Hardly a week goes by without fresh signposts that our self-driving future is just around the corner. Only it’s probably not. It will likely take decades to come to fruition. (Even a car like this Mercedes is more a sketch of what’s to come than an actual blueprint.) And many of the companies that built their paper fortunes on the idea we’d get there soon are already adjusting their strategies to fit this reality.

Uber, for example, recently closed its self-driving truck project, and suspended road testing self-driving cars after one of its vehicles killed a pedestrian. Uber’s chief executive even announced he would be open to partnering with its biggest competitor in self-driving tech, Alphabet Inc. subsidiary Waymo. Meanwhile, Waymo CEO John Krafcik recently said it will be “longer than you think” for self-driving vehicles to be everywhere.

“Self-driving technology has the potential to make our roads safer and cities more livable, but it will take a lot of hard work, and time, to get there,” says an Uber spokeswoman.

In the past two years, Tesla CEO Elon Musk planned, then scrapped a coast-to-coast autonomous road trip. And Lyft CEO John Zimmer’s 2016 prediction that self-driving cars would “all but end” car ownership by 2025 now seems borderline ridiculous.

There are many reasons the self-driving tech industry has suddenly found itself in this “trough of disillusionment,” and chief among them is the technology. We don’t yet know how to pull off a computer driver that can perform as well or better than a human under all conditions.

Read More $ WSJ
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