The automotive sector is experiencing significant innovation, led by Tesla (TSLA). The need for better technology here is obvious. Even Apple (AAPL) is reportedly interested in making an “Apple Car.” Apple’s Tim Cook refused to talk about it. This means Tesla gets all the attention.

Tesla unveiled the autopilot system on October 14. The software update is available to cars made after September 2014. Model X will also have this update option. The autopilot works through “a forward radar, a forward-looking camera, twelve long-range ultrasonic sensors positioned to sense sixteen feet around the car in every direction at all speeds, and a high-precision digitally-controlled electric assist braking system.”

Despite Tesla’s share price falling steadily in recent weeks, interest for “Tesla” and “autopilot” surged after the company announced autopilot:

Source: Tickertags

Existing Tesla customers get the full update only if they paid the $2,500. Those who did not get only the feature of a side-impact warning. Auto steering is not a value-added feature for automobiles. The function is also limited in when it is available. Heavy rain or snow and poor lane markings will render it unavailable. The driver is still liable if an accident occurs as a result of its use.

Valuation still high

Tesla’s forward P/E is close to 100 times and 40 times book. Its debt to equity is 3.75 times.

Tesla is not the only supplier for self-driving cars. Mercedes is testing this on trucks, and American car companies already offer automated parallel parking.

Investors looking for a cheaper way to invest in green cars should consider Toyota Motors (TM). Its Prius Hybrid is around $35,000. GM’s (GM) Bolt Hybrid will cost the same, too. Ultimately, the winner in the green driving race will be the companies who target the mass market.