2. Aurora Innovation, Inc. (NASDAQ: AUR)
Number of Hedge Funds Holders: 27
Aurora Innovation, Inc. (NASDAQ: AUR) is a self-driving vehicle technology company that is focused on developing and operating Aurora Driver, a platform that integrates software, data services, and hardware that can be installed in cars for autonomous driving.
Aurora driver is a self-driving system designed to operate multiple types of vehicles from ride-hailing passenger vehicles to freight-hauling trucks to enhance transportation safety and efficiency. Aurora is working with a lot of industry leaders in the transportation ecosystem like Toyota, Uber, Uber Freight, Ryder, FedEx, Volvo Trucks, and Werner.
Since 2021, Aurora’s autonomous trucks have carried goods over 1 million kilometers on public highways. However, there was always a human safety driver sitting in those self-driving heavy vehicles. Ever since there have been only three minor crashes involving those trucks, the company claims that all these crashes were due to the mistakes of other drivers changing lanes on the road. Moreover, no one got hurt, and trucks always pulled off safely to the side of the road. In the U.S. the progress on self-driving vehicles has faced delays due to unfortunate crashes that add up new rules to enhance safety.
Aurora and other selfless driving companies argue that there has been a lot of time and effort invested in ensuring the safety and readiness of these autonomous vehicles. In addition, the advanced laser and radar sensor technology allows these vehicles to analyze the traffic far better than humans which makes them more efficient and safer.
Aurora Innovation, Inc. (NASDAQ: AUR) has attained a 95% autonomy readiness measure signaling a significant advancement towards their goal of user safety, efficiency, and readiness of their autonomous vehicle driving technology.
The company’s innovation showed promising results in terms of road safety tests, including its adaptability to navigate complex road scenarios with quick responses ensuring safety. The system can perceive 360 degrees of the operating environment, and with its advanced modeling support can anticipate and respond to the unpredictable road behavior of other drivers.
This achievement provides an opportunity for investors looking to capitalize on the market of self-driving technology in the years to come. Research suggests that the demand for autonomous vehicles is likely to expand in the future, the market is expected to grow from $52.09 billion in 2023 to $677.23 billion in the year 2031.
Despite recent innovations, the company managed the operating expenses within the planned limits and maintained a robust balance sheet showcasing $1.2 billion in cash and investments, and a net cash of $998 million. In Q1 2024, the company reported an EPS of $-0.11, beating the analysts’ expectation of $-0.14. Operating expenses were $208 million in Q1 2023 which came down by 7.2% to $193 million in Q1 2024.
Despite the progress in autonomy readiness, the company still needs to address the final validation and safety claims before commercial launch. In addition, to fund these projects the company used approximately $150 million cash on operations although managed still represents a significant expense.
Furthermore, the company needs to make prepayments for hardware components so that there can be a ready supply for a smooth commercial launch of autonomous vehicles. This scenario creates a vulnerability linked to dependency on the supply chain as any disruption in the supply chain can affect or delay the launch.
According to Insider Monkey’s database, 27 hedge funds held stakes in Aurora Innovation, Inc. (NASDAQ: AUR) and the total holdings are worth $160.8 million.
