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HMC
CNBC
168 days

Why automakers including Honda and Toyota are pouring millions into rockets and satellites

1. Toyota invests $44 million in rocket maker Interstellar Technologies for satellite services. 2. Honda develops reusable rockets to launch low-earth orbit satellites for navigation and mapping. 3. Connected vehicles could generate $742 billion revenue opportunity by 2030 for automakers. 4. Automakers shifting to service revenue models similar to the smartphone industry. 5. GM expects $2 billion annual revenue from its Super Cruise system in five years.

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FAQ

Why Bullish?

HMC could leverage satellite technology for vehicle services like competitors, thus enhancing market position. Historical shifts to connected services have positively influenced stock prices, especially for automakers embracing technology.

How important is it?

The strategic shift to satellite technology for navigation represents a significant industry trend that HMC must adapt or respond to remain competitive.

Why Long Term?

Revenue opportunities from connected vehicles will develop over the next decade, aligning with HMC's future growth strategy. Similar trends in technology adoption in the automotive space provide a roadmap for long-term gains.

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