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Highlights
- The UK government has announced a £40 million fund to kick-start the autonomous vehicle services in the country.
- The funding is likely to generate 38,000 new skilled jobs over the next decade across UK.
The British government has unveiled a £40 million fund to boost commercial self-driving services in the country that could make travelling safer and more reliable. Called the ‘Commercialising Connected and Automated Mobility’ competition, the initiative will help harness the potential of self-driving technology and provide grants to help roll out commercial autonomous vehicles across the UK from 2025.
As per a statement from the government, the funding will unlock an industry that could be worth £42 billion and generate 38,000 new skilled jobs over the next decade across the country. It will also help bring together investors and companies to launch sustainable business models nationally and exported internationally.
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Among the vehicles that could be deployed are self-driving buses, shuttles, delivery vans, and vehicles used to move luggage and people at airports. They could be available for lease, rent, or purchase later this year.
The vehicles will get the government's approval under the Automated Lane Keeping System (ALKS) Regulation and will have to pass stringent safety checks. It may be noted that the government continues to work on the legal framework to ensure that self-driving vehicles can safely ply roads.
In the wake of this development, let us explore some FTSE-listed stocks that may benefit from the development.
Ceres Power Holdings Plc (LON: CWR)
The company is engaged in developing and commercialising fuel cells and focuses on clean energy. For the year to 31 December 2022, the company saw a 44% increase in revenue and other operating income following strong progress on major contracts.
The market cap of the company stands at £1,291.19 million as of 23 May 2022. Over the last one year, its shares have provided a return of -34.99% to the investors. As of 8:38 am GMT+1 on 23 May, the shares were trading at GBX 698.00, up 3.19%.
Saietta Group Plc (LON:SED)
Saietta Group is an engineering company that specialises in creating solutions for electric vehicles. It was listed on the London Stock Exchange in July 2021.
Shares of the company were trading at GBX 164.95 at 8:05 am GMT+1 on 23 May 2022, with a market capitalisation of £140.47 million. Its shares have given a negative return of 35.77% on a year-to-date basis.
AMTE Power Plc (LON: AMTE)
AMTE Power develops lithium-ion and sodium-ion battery cells that are used in EVs, among other applications. The company recently joined hands with Sprint Power and Eltrium to boost the development of battery technology and production for electric vehicles.
The company’s shares traded at GBX 74.65, up 0.20% at 8:44 am GMT+1 on 23 May and its one-year returns stood at -71.58%, while the year-to-date (YTD) returns are -48.73%. It holds a market cap of £26.26 million.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
