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Thursday, March 23, 2023

SOBRsafe (SOBR) Stock: Breaking into the Telematics Industry

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Joshua Rodriguez
Joshua Rodriguezhttps://cnafinance.com
Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at [email protected].

I’ve been following SOBRsafe (NASDAQ: SOBR) for about a month now, and what a month it has been. In the most recent news, the alcohol detection company announced a new hire who will make it possible to hit the ground running in the telematics industry. 

What Is the Telematics Industry?

Telematics is all about the high-speed, long-distance transmission of data. This technology is how we monitor vehicles and equipment through onboard diagnostics and GPS technology. 

Think of telematics as the brain of a vehicle. A technology that reports everything from speed to tire pressure, when the vehicle is idling, fuel levels, and more. SOBRsafe has the potential to add another layer of data to this mix – alcohol detection data. 

Imagine a long-distance truck driver getting behind the wheel after lunch. But while at lunch, that driver consumed four alcoholic beverages. Currently, there’s no way for the owner of the company the driver works for to know that the driver is likely impaired. However, with SOBRsafe, that all changes. 

How Big Is the Telematics Industry?

The telematics industry is a massive one. In fact, in 2023, telematics companies are expected to produce a combined $8 billion in revenue. Moreover, the fleet telematics industry is expected to grow by 3.1% in 2023 alone. 

As an investor, I enjoy looking at industry sizes to determine what opportunities represent. Of course, I’m not under any misconception that SOBRsafe will earn 100% telematics market share, but it is nice to know that the company can generate millions of dollars in annual revenue by controlling a very small slice of this industry. 

How SOBRsafe Is Breaking into Telematics

In a press release issued Thursday of last week, SOBRsafe announced that it hired Chris Burton as its Director of Commercial Development. This hire is the catalyst for the company’s ability to break into telematics. 

That’s because Chris has worked in the industry for more than 15 years, with significant success to report. Over the years, he’s developed strong relationships with leaders in the industry. In fact, Chris currently has relationships with several original equipment manufacturers (OEMs). Those include Daimler, Freightliner, Continental, and Thomas Built Buses. As you can imagine, Chris will leverage his relationships in the industry to expand sales.

So, what does that mean for SOBRsafe? Just consider the fleet sizes of these companies. 

  • Daimler: Daimler currently operates more than 85,000 vehicles across 13 countries. 
  • Freightliner: Freightliner operates more than 175 locomotives across the United States. 
  • Continental Automotive: Continental Automotive is a fleet management company. 
  • Thomas Built Buses: Thomas Built Buses produces about 15,000 vehicles annually. 

Considering this information, the opportunity for SOBRsafe here is tremendous. Imagine every Daimler, Freightliner, and Continental vehicle being equipped with SOBRsafe technology. Think about the growth that could come if Thomas Built Buses were to incorporate SOBRsafe technology in the buses they produced moving forward. 

Relationships with these companies have the potential to send SOBRsafe revenues flying. 

The Bottom Line

The bottom line here is simple. SOBRsafe is executing tremendously and is likely to continue doing the same considering the fact that the company is bringing Chris on board. Breaking into telematics has the potential to produce significant revenues ahead. 

Article Resources

Disclosure: CNA Finance is not an investment advisor or broker-dealer. This article was written by Joshua Rodriguez and expresses his personal opinion of SOBRsafe but should not be construed as a solicitation to buy, sell, or otherwise trade any specific security. This is a sponsored article and should not be considered investment advice. Investing comes with risk and CNA Finance strongly advises investors to seek advice from licensed professionals before making any investment decisions. 

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