The advancement of high-end tire technology is not only beneficial for electric vehicles (EVs) but also plays a crucial role in enabling the development of self-driving cars. Recently, Gatik, a privately held self-driving-trucking company, joined forces with Goodyear Tire & Rubber to introduce a groundbreaking partnership. As part of this collaboration, Gatik will incorporate Goodyear's innovative SightLine tires into its autonomous fleet, operating across the United States and Canada.
The significance of top-quality tires for EVs cannot be overstated, especially considering their heavier weight compared to traditional gasoline-powered vehicles. This increased weight places additional strain on tires, leading to faster wear and tear. While this fact is well-known to investors and EV owners, what they may not have realized is that premium tires can also contribute to the advancement of the self-driving car revolution.
Gautam Narang, the CEO of Gatik, highlights the unique capabilities of the SightLine tires. These tires can provide real-time information on crucial factors such as vehicle weight, weight distribution, and road conditions. Unlike human drivers who rely on their experience and instincts to adjust to changing circumstances, self-driving vehicles require precise and immediate responses to ensure optimal performance. When faced with adverse weather conditions like rain or ice, human drivers naturally slow down. Similarly, when towing a trailer, they recognize that it takes longer to come to a stop and adjust their speed accordingly. The SightLine tires act as four intelligent sensors on the road, mimicking the cognition and adaptability of human drivers for a self-driving truck.
In many ways, a Gatik self-driving truck equipped with SightLine tires can be likened to an octopus, where each of its eight tentacles possesses a brain-like feature (in addition to a central brain). This innovative integration represents an intriguing application of cutting-edge smart-tire technology.
Overall, the collaboration between Gatik and Goodyear marks a significant step forward in the development of electric and autonomous vehicles. The adoption of high-end tire technology not only addresses the unique challenges posed by EVs but also contributes to the realization of a future where self-driving cars dominate our roads.
Goodyear and Gatik: Advancing Autonomous Trucking
Goodyear, a tire giant based in Akron, Ohio, has partnered with Gatik, a company specializing in middle-mile autonomous trucking applications based in Mountain View, Calif. This collaboration aims to revolutionize the transportation industry by leveraging autonomous technology to optimize supply chain operations.
The Benefits of Middle-Mile Autonomous Applications
Long-haul routes come with a higher degree of variability and stricter safety regulations that need to be navigated. On the other hand, middle-mile routes, which involve transporting goods between distribution centers or warehouses, are shorter and highly repeatable. These factors make them the perfect testing ground for early autonomous applications. Middle-mile routes also have the advantage of not crossing state lines, which simplifies the regulatory environment.
Gatik's Successful Partnerships
Gatik has already partnered with industry giants such as Walmart, Tyson Foods, and Canadian grocer Loblaw, among others. Some of these collaborations have resulted in the deployment of autonomous vehicles, showcasing the effectiveness and potential of this technology. Validating the technology for autonomous deployment typically takes between 18 to 24 months, highlighting the dedication and meticulous approach taken by Gatik in ensuring its reliability and safety.
Strong Performance and Future Projections
Goodyear has witnessed an impressive growth rate, with its stock price experiencing a 24% increase over the past 12 months. In comparison, the S&P 500 and Dow Jones Industrial Average recorded gains of 22% and 12%, respectively. This upward trajectory showcases confidence in the company's strategic direction and potential value.
Financial analysts project earnings per share of $1.42 for Goodyear by 2024, according to FactSet data. With the current stock trading at 9.7 times earnings, it is apparent that the market perceives Goodyear to be undervalued compared to its competitors. This discounted valuation can be attributed to the volatility in earnings experienced by the company. Fluctuating commodity costs and intense industry competition have put pressure on Goodyear's bottom line, leading to varying earnings results.
Goodyear's collaboration with Gatik represents a significant step forward in the advancement of autonomous trucking technology. By targeting middle-mile routes, the two companies aim to optimize supply chain efficiency and improve overall transportation operations. With strong financial performance and encouraging projections, Goodyear's stock is positioned favorably for potential investors looking for value opportunities in this dynamic sector.