In a recent test conducted by the Insurance Institute for Highway Safety (IIHS), semi-autonomous systems from leading automakers, including Tesla (NASDAQ:TSLA), Ford (NYSE:F), and General Motors (NYSE:GM), have mostly received disappointing ratings. This was due to inadequate measures for preventing misuse and maintaining driver engagement.
Out of 14 systems tested, only Lexus’s Teammate system on the LS received an acceptable rating, with GMC Sierra and Nissan Ariya’s (FR:RNO) systems rated as marginal. The rest were ranked as poor. This study underscores the potential risks associated with partial automation, highlighting high-profile crashes and the lack of evidence supporting automation’s role in enhancing driving safety.
Improvements Are Feasible
Despite the generally poor performance, IIHS President David Harkey noted the varied success across categories suggests that improvements are feasible, possibly through simple software updates. The results call for a more rigorous approach to integrating automation in vehicles, ensuring that advancements in technology do not compromise road safety.
Which Auto Stock Is Best to Buy?
According to TipRanks’ Comparison tool, analysts believe that GM is the best auto stock to buy out of the previously mentioned companies. Indeed, its average price target of $50.28 per share implies an upside potential of 28.23% from current levels. This is on top of a 10% year-to-date rally.
