Primary Approaches to Autonomous Vehicle Rollouts = All New or Assimilation...Traditional OEMs Taking Combined Approach All New = Assimilation = Top-Down, Fully Gradual Rollout / Autonomous Vehicles Mixed-Fleet Environments • Design & build vehicles from day one with • Roll out / upgrade autonomous features goal of full autonomy in current automotive context • Craft architectures / systems for end • Solves issue of integrating autonomy into product needs and with full fleet in mind existing asset base • Adapt testing environments to needs • Real-time, in-field updates & (individual city testing) improvements (Tesla over-the-air • Solves potentially dangerous middle layer software updates)...real-world learnings of semi-autonomy • Semi-autonomous stages require • Need very specific environments and potentially dangerous resumption of regulation to guide integration with driver control current system • OEM production cycles sometimes long, • Potentially difficult to scale which could cause innovation to remain slow • Key Example: • Key Example: Source: Google, Tesla, Morgan Stanley Research, Reilly Brennan (Stanford) KPCB INTERNET TRENDS 2016 | PAGE 141