Goldman Sachs picks three auto stocks ahead of a boom in self-driving tech

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As the race to develop self-driving and electric vehicle (EV) technology heats up, Goldman Sachs has picked three global car stocks to buy.

Analysts at the investment bank said the gap is widening between automakers innovating in these areas, and those lagging behind.

Driverless cars and other autonomous technologies are a hot topic, as Tesla is set to release its first full self-driving technology (known as FSD) this summer.

"The market is very interested in the progress of Tesla's FSD technology that is set for release this summer," the Goldman analysts wrote in a note Saturday, with all eyes on the level of autonomy it achieves.

The analysts' auto picks — all Japanese firms — have a potential upside to their share prices of at least 27%, and are moving closer to launching new technology.

The stocks are:

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