May 2025
Article
4 minutes
Perspectives on Progress #14
Hamish Maxwell – Investment Specialist
- Autonomous driving technologies are transforming transport and logistics with safer, more efficient alternatives to traditional transport systems
- Scottish Mortgage’s portfolio includes autonomous vehicle leaders BYD, Aurora and Zipline, who are pioneering self-driving cars and drone deliver
- These autonomous technology companies solve real-world challenges from driver shortages to urban congestion and are scaling globally
The rise of autonomous technology represents one of the most transformative growth themes globally.
We're at an inflection point, where autonomous systems have the potential to save and improve lives, such as with ground transportation, logistics and aviation. Our portfolio has some exciting investments in this area.
As with any investment, your capital is at risk.
BYD
Shifting Gears
BYD is a Chinese manufacturer of battery electric vehicles (EVs) and plug-in hybrid vehicles. Being the leader in China means it leads the world's market, as the country now dominates the global EV industry. BYD enjoys a virtuous cycle of cost and scale.
Its success is driven by three key strengths:
Technological leadership: with 120,000 engineers and 75,000,000 km of data generated a week, BYD has the data and skilled resources on hand to continuously improve its models.
Cost advantages: The scale of the company’s operations and its focus on keeping the different elements of this in-house reduce cost
Efficient decision-making: this is thanks to the founder Wang Chuanfu's leadership and experienced management team, which allows them to move quickly to maintain their industry lead.
BYD's "intelligent driving for all" strategy aims to make autonomous technology the norm, not the exception. As such, its "God's Eye" driver assistance system will be included across the whole model lineup. Imagine the possibilities this opens for your car to become an extension of your home or workplace, while the driver-assistance programme does the heavy lifting of driving.
Aurora
Keeping Things Moving
Aurora is a leader in autonomous trucking. Its platform autonomously operates heavy-duty trucks, commercial and passenger vehicles. In May 2025, it achieved an extraordinary milestone, when it commercially launched its self-driving trucking, beginning with Texas.
Chief executive Chris Urmson said, “We founded Aurora to deliver the benefits of self-driving technology safely, quickly and broadly. Now, we are the first company to successfully and safely operate a commercial driverless trucking service on public roads.”
The trucking industry faces critical challenges – driver shortages, high fatality rates and rising costs. Aurora tackles these issues with machine learning and sensor fusion, enabling autonomous trucks to operate safely, continuously and efficiently, reducing human risk and transforming freight logistics.
For a closer look under the bonnet of autonomous trucking, listen to our podcast episode with the founder and CEO of Aurora, Chris Urmson here.
Zipline
The Sky's the Limit
Zipline is transforming logistics with its autonomous electric drones, delivering medical supplies, food, and consumer products. Founder Keller Rinaudo Cliffton envisions their service as "approximating teleportation," aiming for precise, affordable deliveries to meet infinite demand. The company was established to address the inequality in logistics systems, which contributes to over 5 million children losing their lives annually due to lack of medical access.
Recognising the global potential of drone delivery, Rinaudo Cliffton focused initially on healthcare in Rwanda, where traditional transport struggled to deliver essential products. Partnering with the Rwandan government, Zipline began delivering life-saving medical supplies via drones. This success, marked by millions of air miles and proven technology, reassured other governments of the system's viability.
Zipline's validation in Rwanda facilitated its expansion into Japan and the US, where it now delivers healthcare and retail goods through partnerships with companies like Walmart. The company's innovative approach suggests limitless possibilities for future growth. In other words, the sky’s the limit.
Go back to Season 1 of Invest in Progress, to hear Tom Slater and Keller Rinaudo Cliffton on the mission of Zipline. Listen to the podcast here.
Joby Aviation
Taxi!
Joby is developing an electric air taxi for commercial passengers. The company’s electric vertical take-off and landing aircraft use new technology to overcome urban congestion and do so in a quieter, safer and more practical way than helicopters.
Imagine a Joby air taxi taking you from JFK airport to Manhattan in 10 minutes, instead of the 60 minutes it often takes. Paul Sciarra, the company’s executive chairman recently told us, "Flying cars, the sort of Jetson future that has been talked about for a while, is happening right now."
Joby has signed an exclusive agreement with Dubai’s Road and Transport Authority to launch commercial air taxi services in Dubai from 2026, with initial vertiport locations at Dubai International Airport, Palm Jumeirah, Dubai Marina, and Dubai Downtown.
It won’t be long before we hear the cry, "Taxi! Downtown please. I'm in a hurry." To which the taxi pilot might respond: "Sure. How about bullet-train-like speeds of 200mph and travelling through the city as the crow flies?"
Hear Executive Chairman Paul Sciarra on the evolution of Joby Aviation from Season 2 of our Invest in Progress podcast. Listen to the podcast here.
Horizon Robotics
In Pole Position
Horizon Robotics is a Chinese provider of driver assistance systems (ADAS) and autonomous driving (AD) technologies for passenger vehicles. It is redefining the future of mobility as it transforms cars from, "purely mechanical things to somewhat like computers running on wheels." So said its founder, Dr Kai Yu, a pioneer in machine learning with over 30 years of experience, on a recent episode of our Invest in Progress podcast.
Horizon’s mission is bold: to become the “Microsoft for robots,” delivering intelligent, scalable solutions that power the next generation of vehicles and beyond.
In China’s extremely crowded and competitive EV market, Horizon has carved out a dominant position, holding over 50 per cent of the ADAS market share. Its AI chips and computing platforms are already enabling hands-off, eyes-off and even minds-off driving capabilities. Strategic global partnerships, including a $2bn investment from Volkswagen, reflect the trust Horizon has built with automakers worldwide.
By mastering both hardware and software and embracing a ‘Journey Together’ philosophy, where it works directly with car manufacturers to integrate its autonomous driving technology into the vehicles those companies produce, Horizon is not just keeping pace with the autonomous revolution – it’s setting the pace.
Listen to the latest episode of the Invest in Progress podcast, to discover how Horizon Robotics are on a mission to be the "Microsoft for robotics"
Listen to the podcast here.
Risk Factors
Unlisted investments such as private companies, in which the Trust has a significant investment, can increase risk. These assets may be more difficult to sell, so changes in their prices may be greater.
The trust invests in overseas securities. Changes in the rates of exchange may also cause
the value of your investment (and any income it may pay) to go down or up.
About the author - Hamish Maxwell
Investment Specialist
Hamish joined Baillie Gifford in 2017 and is an investment specialist. He joined the Scottish Mortgage Team in 2024 and works closely with the managers, meeting with portfolio companies and conducting in-depth portfolio discussions with shareholders. Alongside this, he creates engaging content which makes the Scottish Mortgage portfolio accessible to all its shareholders. Prior to Scottish Mortgage, Hamish worked on Baillie Gifford's international equities strategies alongside Lawrence Burns. Before Baillie Gifford, Hamish served in the Royal Navy as a Commissioned Officer, including time as a leader in aircraft carriers, mine-hunters, and nuclear submarines. During training, he was awarded top-of-class by HRH Prince Edward. Hamish is a CFA Charterholder, and he achieved an MBA from City, University of London where he received the EU Award.
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