Autoliv Surges on First Foldable Steering Wheel for Autonomous Cars
The new design, created for Level 4 autonomous vehicles, solidifies the safety supplier's pivot towards next-generation cabin technology and future growth.
Shares of Autoliv (NYSE: ALV), a global leader in automotive safety systems, gained nearly 3% in trading after the company unveiled what it is calling the world's first foldable steering wheel. The announcement positions the Swedish-American supplier as a key innovator in the race to define the interior of next-generation autonomous vehicles.
The stock rose $3.38 to trade at $122.08, pushing its market capitalization to over $9.3 billion and nearing its 52-week high of $128.54. Investors responded positively to the forward-looking product, which directly addresses the evolving design challenges of self-driving cars.
A Glimpse into the Future of Driving
The innovative steering wheel, developed in collaboration with technology firm Tensor for its Robocar project, is designed for vehicles with Level 4 autonomous capabilities. In self-driving mode, the wheel can retract into the instrument panel, creating more space and flexibility for the driver to engage in other activities. Crucially, Autoliv has integrated an adaptive airbag that provides customized protection depending on the driver's position, ensuring safety remains paramount even when the traditional driving posture is abandoned. This dual focus on convenience and safety is a critical selling point for future automotive interiors.
The Tensor Robocar featuring this technology is projected to be ready for volume production in the second half of 2026, marking a tangible timeline for the product's market entry.
Strategic Pivot from a Position of Strength
This innovation is a significant strategic move for Autoliv, a company that already commands an estimated 44% of the global market for passive safety systems like airbags and seatbelts. The foldable steering wheel demonstrates a clear pivot towards capturing new revenue streams from the transition to autonomous driving, moving beyond its traditional, albeit dominant, product lines.
The market’s enthusiastic reception comes as Autoliv demonstrates robust financial health. The company reported strong results for the third quarter of 2025, with a 5.9% year-over-year increase in net sales and a healthy adjusted operating margin of 10.0%. This financial stability provides a solid foundation for investing in future-oriented research and development projects.
"The foldable steering wheel is a testament to our commitment to enriching the in-vehicle experience while enhancing safety," an Autoliv representative might state, bridging their legacy with their future ambitions. The move is seen as essential for staying ahead in a rapidly changing auto components sector where software and advanced electronics are becoming as important as mechanical parts.
Analyst Outlook and Global Growth
Wall Street has maintained a broadly positive outlook on Autoliv, with a consensus "Moderate Buy" rating from analysts. The average price target sits around $138, suggesting analysts see further upside potential from the stock's current level. The company's consistent performance and strategic initiatives appear to underpin this confidence.
Further bolstering its growth narrative is Autoliv's significant expansion in the critical Chinese automotive market. The company recently announced it was building a second R&D center in China and noted that its sales to Chinese domestic automakers grew by nearly 23% in its most recent quarter. This deepens its footprint in the world's largest auto market, which is also a leader in electric and autonomous vehicle adoption.
While the full realization of Level 4 autonomous driving on public roads still faces regulatory and technological hurdles, Autoliv is positioning itself as an indispensable supplier for the cars of tomorrow. By creating enabling technologies like the foldable steering wheel, the company is ensuring its relevance and growth potential regardless of which automakers ultimately win the autonomous race.