While self-driving cars aren't frequently seen on America's highways and byways, companies developing autonomous vehicles have made tremendous progress in developing these innovative vehicles in the past few years, leading investors to consider options like Nuro stock.
Because the company is developing a self-driving car, investors have the ability to gain artificial intelligence (AI) exposure through a Nuro investment. Even those who superficially follow the markets know that one of the most dominating trends right now is the enthusiasm for stocks. And there's no shortage of opportunities from which AI-focused investors can choose. From semiconductor companies like Nvidia (NVDA 3.43%) to those that embed AI in their cybersecurity solutions like CrowdStrike (CRWD 2.04%), there are plentiful options. Among these is Nuro since it relies on AI to facilitate its autonomous driving capabilities.
Many self-driving car stocks are working to transport people, but Nuro is singularly focused on food delivery. Founded in 2016, Nuro is developing a fleet of autonomous vehicles to deliver food, groceries, and other items to customers. The company is currently led by its two co-founders who were both engineers at Google: Jiajun Zhu, Nuro's CEO, and Dave Ferguson, Nuro's president. The company achieved an industry milestone in 2020 when the U.S. Department of Transportation and the National Highway Traffic Safety Administration granted Nuro approval for a self-driving vehicle exemption for the company's R2 vehicle -- the first of its kind.
People interested in driving ahead with an investment in Nuro stock have several things to consider, such as how to buy shares, when it will hold its potential initial public offering (IPO), and alternative investment opportunities that might exist.
IPO
Is Nuro publicly traded?
Is Nuro publicly traded?
Nuro may be driving onto investors' radars, but as of July 2024, Nuro was still a privately held company. While retail investors can't hitch a ride with Nuro, the company has secured investments from SoftBank (SFTB.Y 0.88%), Disney (DIS -0.1%), and Alphabet (GOOG 2.5%)(GOOGL 2.65%), as well as several venture capital firms.
When will Nuro IPO?
When will Nuro IPO?
For people who are patient and comfortable with speculative investments that entail higher degrees of risk -- but offer the chance for higher rewards -- buying IPO stocks presents unique investment opportunities. And while several companies are planning to go public in 2024, it's highly unlikely that Nuro will find itself on the IPO calendar anytime soon.
How to invest
How to buy Nuro stock
Much to the chagrin of many investors, Nuro stock is not an option available to them. Accredited investors, however, may be able to buy shares before the company launches an IPO. People who fit the criteria of an accredited investor may be able to buy Nuro stock on platforms such as Forge Global (FRGE -8.53%), which allows them to invest in privately held companies.
Although you may not qualify as an accredited investor, you're not completely out of luck. There are publicly traded companies with businesses similar to Nuro.
Step 1: Open a brokerage account
Investing in stocks is a great way to grow your nest egg, but it requires a little work to get going. Before anything, you must open a brokerage account so you can buy and sell stocks. For people new to investing, a good option is to open a brokerage account with Fidelity, which offers zero-commission online stock trades.
Step 2: Figure out your budget
Your shiny new brokerage account may be ready for action, but it's important to hold off and get to work deciding on your budget first. Be mindful of monthly expenses, long-term financial goals, and any other considerations that could affect your budget. Building wealth is a long-term pursuit, so don't feel that you must overburden yourself by investing more than you're comfortable with at the onset of your investing journey.
Step 3: Do your research
Experienced investors know full well the importance of conducting their due diligence, and there are plentiful online resources that can assist new investors with identifying potential stock purchases.
Step 4: Place an order
Only some final decisions to make before you're able to congratulate yourself for buying your first stock. For one, you'll have to decide how many shares to purchase. Then, you'll have to select the type of order you want to make: a market order or a limit order. The Motley Fool recommends a market order since it guarantees you buy shares immediately at market price.
The time has come -- you're ready to click the buy button. Now, pat yourself on the back. You've taken a significant step toward building your personal wealth.
Although Nuro stock may not be an option for ordinary retail investors, there are comparable companies that they may find appealing.
1. Nvidia
Although picking up shares of Nuro isn't a possibility for most investors, there's still the opportunity to gain indirect exposure to the self-driving car stock with Nvidia. The semiconductor powerhouse has developed a platform specifically designed for automotive applications: Nvidia Drive AGX. A key hardware component of Drive AGX is DRIVE Thor, a chip that incorporates sophisticated central processing units (CPUs) and graphic processing units (GPUs) to provide autonomous driving. In March 2024, Nuro announced that it would incorporate its sensors and AI software with Nvidia's DRIVE Thor in its vehicles to provide Level 4 autonomous driving capabilities.
In addition to Nuro, Nvidia provides its automotive hardware to a variety of other customers including BYD (OTC:BYDF.F) and XPeng (XPEV 0.34%). During its first quarter 2025 earnings presentation, Nvidia noted that self-driving platform products were the primary factor behind the 11% year-over-year revenue increase in its automotive business.
2. Tesla
There are plenty of car companies striving to develop sophisticated autonomous driving functionality, but Tesla (TSLA 0.15%) is likely the name that most people on the street will associate with self-driving cars, and for good reason. Tesla has made tremendous strides in achieving self-driving functionality. For vehicles built after September 2014, drivers can use Tesla's advanced driver assistance system, Autopilot. In addition to matching the speed of the vehicle to the speed of surrounding traffic, Autopilot provides steering assistance within clearly marked lanes with traffic-aware cruise control.
Drivers who want an even more advanced autonomous driving experience can subscribe to Tesla's Full Self-Driving (FSD) capability. In addition to the Autopilot features, FSD capability includes automatic parallel parking, changing lanes, plus stopping at signs and traffic lights -- to name a few features.
Besides vehicles where people sit in the drivers' seats, Tesla plans to produce driverless vehicles, called Robotaxis, which rely on FSD technology. Tesla plans to unveil its Robotaxi in October 2024.
3. Uber
For investors who place more of an emphasis on the fact that Nuro provides food delivery, Uber is a worthy consideration. While Uber originally made its name from ridesharing, its delivery business -- which includes food, as well as alcohol and other items -- has grown considerably recently in terms of profitability. Uber's delivery segment adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was 5.1% in 2022; it soared to 12.3% in 2023.
Amplifying the appeal of Uber stock for Nuro-focused investors, a portion of Uber's delivery revenue directly stems from Nuro itself. In September 2022, Uber and Nuro agreed to a 10-year partnership, with Uber planning to use Nuro's self-driving vehicles to make food deliveries in Houston, Texas, and Mountain View, California.
Artificial Intelligence
Profitability
Is Nuro profitable?
Because Nuro is a privately held company, it isn't subject to the same financial reporting requirements as publicly held companies, so investors don't have the luxury of combing through Nuro's quarterly filings and 10-Ks. As a result, insight into the company's financial circumstances is rather scant, including whether the company is generating a profit.
Should I invest?
Should I invest in Nuro?
With its innovative approach to food delivery, investors may find Nuro stock enticing and proceed to debate the merits of an investment in the company. They're out of luck since the company hasn't held an IPO. If the company proceeds with an IPO, however, it will have to submit regulatory filings, providing investors with much greater insight into the company's financials and helping them to make a more informed decision about whether the stock is a smart investment for them.
Accredited investors may presently be able to gain a position in Nuro but should only proceed if they're comfortable with a more speculative investment.
ETF options
ETFs with exposure to Nuro
Since Nuro is a privately held company, investors can't gain exposure to the stock through an exchange-traded fund (ETF). There's no need to despair, though, since there are several ETFs that provide exposure to stocks closely related to Nuro.
- ARK Autonomous Technology & Robotics ETF (ARKQ 1.81%): For investors who want more comprehensive exposure to autonomous mobility, the ARK Autonomous Technology & Robotics ETF is a great choice. Of course, there's exposure to Tesla (the largest position in the ETF with a 12.3% weighting), but there's also extensive exposure to drone stock AeroVironment (AVAV 1.69%) and AI semiconductor stalwart Nvidia. With about $800 million in assets under management, the ETF has an expense ratio of 0.75%.
- iShares Self-Driving EV and Tech ETF (IDRV 0.8%): Investors looking for more concentrated exposure to both self-driving cars and electric vehicles (EVs)will want to kick the tires on the iShares Self-Driving EV and Tech ETF. Rivian (RIVN -4.7%), Tesla, and Lucid (LCID 1.22%) are the top three holdings, but the ETF also includes companies manufacturing EV batteries and mining companies producing minerals used in EV batteries. The iShares Self-Driving EV and Tech ETF has $224 million in assets under management, and it has a 0.47% expense ratio.
- VanEck Semiconductor ETF (SMH 3.31%): Packed with leading semiconductor manufacturers, the VanEck Semiconductor ETF will attract interest from investors looking for exposure to businesses that provide the "brains" for self-driving vehicles. Nvidia is the largest holding in the ETF with a 20% weighting, while Taiwan Semiconductor Manufacturing (NASDAQ:TSM) and Broadcom (AVGO 1.66%) represent the next largest positions with weightings of 13% and 8%, respectively. The VanEck Semiconductor ETF has a 0.35% expense ratio and more than $24 billion in assets under management.
Related investing topics
The bottom line on Nuro
Nuro may not be delivering food to your front door in the near future, but its partnership with Uber is providing service to limited customers in California and Texas, suggesting the company is farther down the road to growing its operations than some of its peers.
But without an IPO on the horizon, this privately held company isn't an investment opportunity that's widely available. Nonetheless, investors can gain indirect exposure to Nuro through investments in Nvidia and Uber, as well as various ETFs that focus on autonomous mobility companies and semiconductor companies.
FAQ
Investing in Nuro FAQ
Can you buy stock in Nuro?
Because Nuro hasn't held an IPO, its stock isn't available to the majority of investors. However, accredited investors may be able to buy shares on platforms like Forge Global.
Is Nuro a good stock to buy?
Investing in Nuro isn't an option unless you're an accredited investor, as it's still a privately held company. For accredited investors who can gain a position in Nuro, it's imperative they understand the substantial risk of investing in a company whose financial information is scant.
Who are the investors in Nuro?
In addition to the company's insiders, Nuro has various investors, from venture capital firms to corporations like Disney, Alphabet, and SoftBank.
What is the valuation of Nuro?
According to Forge Global, the last known valuation for Nuro was $8.6 billion.
