Our daily lifestyles will be seeing drastic changes very soon with the disruption in this one market, kathy wood, the ceo and cio of arkhanvest has been known for investing heavily in technology. She believes will disrupt our society. In this video we will be discussing kathy wood's revolutionary outlook for a 100 trillion dollar industry that will bring forth massive changes for the future and, without a doubt, bring us investors. Massive amounts of returns welcome to caskians academy.

If you're new to the channel, please consider subscribing for more content like this and let's get right into it. The 100 trillion dollar industry that kathy wood is referencing. Here is the transportation market. This includes everything related to transporting items and us humans, which definitely encompasses a lot behind the scenes of our everyday lives.

The transportation market is changing drastically. The most obvious change in this market is the electric vehicle revolution because of superior battery technology and engineering electric vehicles are currently set out to completely surpass traditional gas-powered cars soon. This is due to the fact that eb's will soon be cheaper than gas-powered vehicles while having a longer driving range, while sales of gas-powered vehicles have faltered. In the past couple of years, electric vehicle sales overall have gone up dramatically, as many of us know already.

Kathy wooden ark invests have found immense success so far and will continue to have success in their bullish stance on wright's law. The two most famous laws, while studying innovation, are wright's law and moore's law. Wright's law goes against the traditional moore's law. Moore's law states that technology costs will decline by half every two years.

Moore's outlook is fundamentally inaccurate simply because it compares costs with a set time frame, which is extremely hard to measure against over extended periods of time. On the other hand, wright's law, which archinvest believes in claims that for every cumulative doubling of the units produced costs, fall by a constant percentage. This law essentially states that, with the higher scale of production, the cost per unit will fall in simpler terms as a higher scale of production is achieved, costs fall by a certain percentage. We can see the successful application of wright's law in the auto industry, both for the hundreds years of production in the ford production cost and also with the tesla model 3., with the downward trend line of wright's law, which the overall electric vehicle market has successfully followed.

So far, we will no doubt continue to see gradual price cuts that will lead to a vehicle cheaper than the internal combustion engine vehicle, for example, while the toyota camry is an extremely popular vehicle, its technology has not improved at all or very little over a lengthy Period of time, as we can see from this graph, which compares the toyota camry with the prospective 350 mile ev by 2023, these two vehicles will cost the same, and by 2025 the eevee will be 30 cheaper than the toyota camry, with price out of the way. Let's take a look at other factors such as the performance of the electric vehicles. Overall, as i detailed in a previous video, only a few companies dominated the american automobile market in the early 1900s, which are gm, ford and chrysler. The same will happen with the eevee market.

Kathy wood and arc invest actually believe that the global sales of electric vehicles will grow at a compounded annual growth rate of 82 per year until 2025.. This would mean a growth from around 2.2 million sales in 2020 to 40 million sales overall in 2025, or a 20x increase. However, not all evs are the same, especially in the way they are made. This is the transition where we could see.

Traditional car manufacturers go out of existence if they can't catch up with the pace of tesla and other ev leaders. In this graph of electric vehicle efficiency versus performance, we can see a comparison between existing evs with the overall trend of wright's law. The companies with the best performance are those further to the right of the x-axis or zero to sixty acceleration speeds, while higher up on the graph on the y-axis or epa range. Traditional automobile manufacturers have been ignoring the eb transition up until recently, when they couldn't ignore the immense success of tesla, because of this they are far behind on ev technology.

Furthermore, these manufacturers have been built and established from the ground up for the manufacturing of internal combustion engine vehicles, which puts them at a huge disadvantage unless traditional management pulls off a successful company mindset and production shift and pour massive capital into electric vehicle research and development. Traditional auto could very well go bankrupt in the next few years. The transportation revolution is more than just evs, though, in addition to the transition in evs, the transportation revolution also includes autonomous, ride, hailing or ride sharing, which is going to dominate urban transport. This is where we can see the convergence of the transportation revolution with the movement of artificial intelligence.

Arkan vest believes that this move towards autonomous ride-hailing platforms will be incentivized both by the extreme convenience of a service followed by its immense profits. This sector will overall generate more than 1 trillion dollars in profit per year by 2030 and can generate profit margins in the ranges of 50 or even 60 percent. The cost per mile of this transportation has the ability to drop from 25 cents from the current value of 70 cents, which is a value that hasn't changed since the 1950s. This service is spearheaded by three different autonomous technologies who, while aren't set in stone and still have a ways until execution, have all made significant strides in progress.

Tesla's approach to autonomous transport according to arc invest is slow to develop and requires immense amounts of data collection. However, out of the three technologies tesla, if successful would be the fastest to scale on a national basis, since it is camera based and doesn't require expensive sensors. In addition, tesla has been collecting data from the many tesla owners who use their vehicles on a daily basis. Waymo is using lidar technology or light detection and ranging, while it has the ability to scale fast in the beginning of its launch.

It requires many expensive sensors that make it extremely hard to scale during tesla's. First, autonomy day in 2019, elon musk called out the feasibility of lidar on a large scale. Lidar is a fool's errand. Anyone relying on lidar is doomed doomed.

They are expensive sensors that are unnecessary. It's like having a whole bunch of expensive appendaces like one appendix, is bad. Well now you have a whole bunch of them. It's ridiculous! You'll see the final one is from chinese company baidu and it's apollo go technology while baidu is currently the leader in autonomous technology.

For the china economy, arkan vest says that it's the least stable out of the three now as crazy as it may seem. This revolution in transportation doesn't only include humans. Kathy wood recently announced that she'll be releasing a new arc, invest etf in the aerospace industry. Once this etf is public, it will trade under the tigris symbol of arkx kathy would see the space industry as one that will literally and figuratively take off.

This is due to the fact that ark's research shows that the aerospace opportunity will be worth over 370 billion dollars. This includes internet connectivity from satellites, hypersonic travel and a potential civilization in mars. The main leader in this industry is easily spacex, as spacex has lowered the cost of launching rockets by substantial amounts in comparison with the 2016 atlas. V.

2014. Ariane, 5 and 2020 reusable falcon 9 spacex's starship looks as if it costs pennies. Additionally, the number of satellites scheduled for orbit is increasing dramatically and is now at over 25 000 satellites. Spacex is rumored to be taking starling public, which is the global internet.

Connectivity portion of its business. Kathy wood will likely invest in starlink once it ipos, as she sees the satellite market as one that could approach 100 billion dollars in the medium term. In addition to internet connectivity, kathy also sees hypersonic flight as a business that will eventually overtake traditional airlines starting out with premium flights. There are 2.7 million passengers demanding for potential hypersonic flight, even if it costs 100 000.

This demand leads to a total estimated market size for the hypersonic industry of 270 billion dollars. Now kathy wood sees the aerospace industry as one that goes beyond space, and by that she means it includes drones that carry humans and items. Drones are beginning to ship many items from pharmaceutical drugs to parcel the federal aviation industry or faa has started to allow drones to operate outside of human site, which opens up a booming industry. In addition to shipping items, arc also sees potential in drones being used for bridge inspection and even for human transport.

Once battery energy density improves over the past year, the pandemic has only accelerated the use of drone delivery for food arc. Estimates that the drone industry of 40x from its current market share in food delivery. Now you might be wondering what investment opportunities are in the drone industry to start off, with the most obvious one amazon is leading the innovations in drone delivery, its drones deliver packages to customers in 30 minutes or less, which is definitely quite fast. Additionally, nvidia is set to become a beneficiary of the drone boom, as it owns a deep learning drone software platform that helps drones, understand and react to the world around them.

Food delivery companies like grubhub, ubereats and doordash will also benefit as they've been testing with drone food delivery. Overall, the blossoming transportation revolution will no doubt change the way. We live our lives in drastic manners, with the introduction of new innovative players in a massive market due for disruption, there will no doubt be a lot of potential to make massive returns. However, we definitely shouldn't expect an easy ride to the moon because of the amount of opportunity.

There is a lot of competition in this space and many will not make it through as investors. There will be lots of green days, but on the other side of the equation, we shouldn't be surprised to find and expect many red days as well. What's more important is to find the winners within this competitive landscape, with real technology, real leadership and real growth, and not put our money into the next nikola scams? If you enjoyed this video, consider supporting the channel on patreon, where you'll get to see my portfolio with my analysis and also buy and sell alerts, and please hit the like button and i'll see you in the next one.