Jed Ellerbroek, Argent Capital Management portfolio manager, says Google, Tesla and Amazon are leading in vehicle autonomy. He joins 'Power Lunch' to discuss the more reliable names he favors in transportation.

Jed Ellerbrook, portfolio manager at Argent Capital Management, identified Google, Tesla, and Amazon as leading companies in the development of autonomous vehicle technology. He noted that these firms are making significant progress in rolling out autonomous driving, with Google moving quickly and Tesla leveraging a cost advantage in its vehicles. 

Ellerbrook emphasized that established companies with durable competitive advantages, strong management, and growth opportunities are the preferred choices for investment in the sector. While smaller companies may eventually benefit as the technology matures, Ellerbrook stated that consistent profitability and proven technology would be necessary for them to become attractive investment options.

Google, Tesla and Amazon are leading in vehicle autonomy

But our next guest says he likes the successful established companies, the reliable more household names when it comes to the future of transportation. So joining us now is Jed Ellerbrook, the portfolio manager over at Argent Capital Management. And Jed, we have a lot of these hot names coming out here. Brian and I were just talking about this broadening out aspect. It's not all necessarily Mag7, but they're important. But other names in the mix for the future of transportation are ones we should be paying attention to. Yeah, absolutely. It's an enthusiastic market these days. We're seeing a lot of IPO activity. And of course, small caps would really benefit and love to see lower interest rates, which seems to be on the horizon here over the next year. But in terms of autonomy and mobility, I think Google, Tesla, and Amazon are doing really incredible things to develop autonomous driving. They're trying to roll it out city by city across the country. Google seems to be moving the quickest in that regard, but Tesla is racing to catch up. And they have a cost advantage with their vehicles right now as well. So as you look as a portfolio manager, when it comes towards allocating and picking certain types of stocks, why would you gravitate towards certain parts of that kind of market in a red hot space where there's high beta, high, maybe even alpha in some of these types of names that are not the ones necessarily that you would want to pick for your portfolio? Yeah, sure. At Argent Capital, we're focused on enduring businesses. And for us, that means a durable competitive advantage. That means a management team that has a track record of allocating capital and shareholders' best interests. And it also means a secular growth opportunity. All three of those are obviously present with Google and Amazon. I think that mobility and autonomy and robotics is a really big part of the investment case for those two stocks over the next five years. If and when robotics takes off, we will see a bunch of small cap companies benefit as well. And we'll see a bunch of huge winners in that space. But I think Amazon and Google are the highest likelihood winners, and their scale advantages are really meaningful. And Jed, just so that we're clear, we know that those big established names are the ones that you want to pick. But at what point would some of these types of names, hypothetically, like a Firefly, hypothetically, like some of these other smaller cap names with regard to aerospace and transportation, make it to your screens in order for you to say, I'm going to make an investment in them? Yeah. Consistent profitability is probably the biggest thing that they could accomplish. And all those businesses are in early stages. They're investing really aggressively to prove out their technology, get a dedicated customer base, and then scale from there. And so if that process is successful, consistent profits are generated, and that growth runway remains available, that would be exciting to us.

The National Guard has started to patrol the streets of Washington after U.S. President Donald Trump declared a crime emergency. He’s also ordered troops to clear out all homeless encampments by the end of the week.

Washington

National Guard starts patrolling Washington

Record-high temperatures across Europe are fanning wildfires across the continent. Experts say a warming climate and an increase in flammable vegetation from rural depopulation are major factors.

Madrid

Historic heat fuels fires across Europe

Hungary's PM Viktor Orbán said the EU attempts to set conditions for a meeting to which leaders of the EU were not invited. He also called for an EU-Russia summit.

Brussels

Ukraine Invasion

EU leaders rally behind Ukraine ahead of Trump-Putin talks

President Trump said Monday he expects that Russia and Ukraine will "land swap" certain territories as part of an eventual ceasefire deal. Mr. Trump is set to meet with Russian President Vladimir Putin in Alaska on Friday.

Trump claims 'land swapping' between Russia, Ukraine will happen

Taylor Swift confirmed her 12th studio album, "The Life of a Showgirl," in a teaser for her upcoming appearance on her boyfriend Travis Kelce's podcast. Swift did not disclose the release date of the album.

Taylor Swift announces new album, 'The Life of a Showgirl'

U.S. President Donald Trump said that his planned meeting with Russian President Vladimir Putin in Alaska on Friday will be to "feel out" the leader as pressure mounts for Russia and Ukraine to make a peace deal.

Trump to meet with Putin in Alaska on Friday

A meeting between US President Donald Trump and Russian President Vladimir Putin is set to take place in Alaska, with European leaders notably excluded from the talks. Until Europe can defend itself, it's not likely to be invited to a great power dialogue, experts have told Euronews.

Alaska

Europe frozen out as U.S. and Russia prepare for Alaska talks

U.S. President Donald Trump said on Monday that Kyiv and Moscow will both have to cede land to end the war in Ukraine and talks with Russian President Vladimir Putin this week will instantly show whether the Kremlin leader is willing to make a deal.

Trump says both sides in Ukraine war will need to cede territory

A prominent Al Jazeera journalist, who had previously been threatened by Israel, was killed along with four colleagues and another journalist in an Israeli airstrike in an attack condemned by journalists and rights groups.

Jerusalem

Middle East Conflict

Israeli strike kills Al Jazeera journalists in Gaza

At last one person is dead, dozens are injured and two people are unaccounted for after an explosion at the U.S. Steel Clairton plant in Pennsylvania on Monday.

Clairton

At least 1 dead, dozens injured in U.S. Steel plant explosion

President Donald Trump has placed the Metropolitan Police Department under federal control and announced he's activating the National Guard to combat crime in Washington, D.C.

Trump deploying National Guard to Washington, D.C.

Ukrainian President Volodymyr Zelenskyy is thanking European leaders for backing his push to join this week's Trump-Putin summit in Alaska, insisting an end to the war must be fair.

Trump and Putin set to meet on Friday without Zelenskyy

U.S. President Donald Trump and Russian President Vladimir Putin are scheduled to meet in Alaska on Friday to discuss ending the war in Ukraine. Kyiv and its allies fear being sidelined and worry any deal could reward Moscow’s occupation of Ukrainian territory.

Kyiv

Ukraine fights for a seat at the table ahead of Trump-Putin summit

Israeli Prime Minister Benjamin Netanyahu is defending his decision to keep fighting in Gaza, despite protests at home and abroad. Debora Patta has the latest.

Tel Aviv-Yafo

Netanyahu defends plan to expand war in Gaza

Ukrainian President Volodymyr Zelenskyy is thanking European leaders for backing his push to join this week's Trump-Putin summit in Alaska, insisting an end to the war must be fair. Willie James Inman has more from the White House.

Anchorage

Countdown begins to Trump-Putin meeting, without Zelenskyy

Violent weather hit several Midwest states over the weekend, with high winds being blamed for the death of at least one person in Nebraska and flash flooding prompting a state of emergency in Milwaukee County, Wisconsin.

Milwaukee

Milwaukee inundated with floodwaters, one dead in Nebraska

Thirty-seven major wildfires are currently burning across nine states in the western United States. Firefighters have made significant progress on the Canyon Fire in California, achieving 62% containment and allowing over 4,000 residents to return home, with minimal property loss reported.

Major fires continue to burn across western U.S.

President Donald Trump's envoy met with the Qatari prime minister on Saturday in Spain to discuss possible deals to end the Israel-Hamas war in Gaza, as Israel's military plans to expand into Gaza City. Meanwhile, families of Israeli hostages and Palestinians alike are pleading for peace.

Families of Israeli hostages, Palestinians plead for ceasefire

Renewed anti-government protests have taken place in Israel, where relatives and supporters of Israeli hostages held by Hamas demanded their release and an end to the brutal war Israel has been waging in Gaza.

Israeli anti-government protesters take to the streets in Tel Aviv

Ukraine's President Volodymyr Zelenskiy said that Kyiv "values and fully supports" a joint statement by European leaders that welcomed U.S. President Donald Trump's efforts to try to end the war, while emphasizing the need to pressure Russia and provide security guarantees for Kyiv.

Europe stresses need to protect Ukraine ahead of Trump-Putin meet

Ukrainian President Zelenskyy has firmly rejected Russia’s proposal requiring land concessions to end the war. Ukrainian and European officials have submitted a counterproposal to Washington.

Ukraine, Europe counter Russian ceasefire proposal ahead of US talks

There have been more protests, and counter protests, in several British towns and cities, outside of hotels used to accommodate asylum seekers. Some far-right protesters called for one of the hotels to stop housing migrants.

Bournemouth

UK: Anti-immigration & anti-racism protesters face off

A man who opened fire on the U.S. Centers for Disease Control and Prevention headquarters in Atlanta, firing into the complex from a pharmacy and killing a police officer, blamed the COVID-19 vaccine for making him depressed and suicidal, according to reports.

Atlanta

Vaccine conspiracy could be behind Atlanta shooting

The Gifford Fire burning through the rugged backcountry of California's Central Coast is now the state's largest wildfire of the year. It has reached so-called "mega-fire" status and is one of 38 large fires burning across nine states.

San Luis Obispo

Largest California wildfire of 2025 reaches "mega fire" status

President Trump is preparing to take another swing at a deal with President Putin during a high-stakes summit next Friday in Anchorage, Alaska. Ukraine President Volodymyr Zelenskyy says the country will never give up land, even if it means an end to the war.

Trump: Ukraine must cede land for ceasefire; Zelenskyy refuses

The United Nations Security Council is set to hold a rare Sunday meeting to discuss Israel's plan to intensify its 22-month war with Hamas by taking control of Gaza City. CBS News' Debora Patta reports on the conflict and the mounting humanitarian crisis.

Netanyahu's plan to occupy Gaza comes under fire

At least 200 protesters have been arrested at a rally showing solidarity for Palestinians in Gaza, outside the Parliament in London. Crowds are also demonstrating against a ban on the Palestine Action group, after it was designated as a terrorist organisation.

Breakdown