Morgan Stanley On The ‘Death Of An Auto Analyst’

Morgan Stanley On The ‘Death Of An Auto Analyst’

The automotive industry is one of the most exciting industries in modern times. The development of new cars and the technology offer a lot to anticipate. In a new report titled ‘The Death Of An Auto Analyst’, Morgan Stanley indicates there has been dramatic changes in the auto industry. The following is a brief summary of the three main points from the MS report:

  • More tech companies making cars
  • End of individual ownership
  • End of human driving
  • Think big

Morgan Stanley: Cars of the future

Autonomous driving will likely be a big part of the future, and it could come sooner than anticipated. This type of vehicle would have no steering wheel and would run completely autonomously. According to an older Morgan Stanley report from nearly a year ago, semi-autonomous cars would come 12 to 18 months, and fully autonomous cars would arrive by the end of this decade.

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Another key change for the automotive industry is the end of car ownership. When you combine autonomous cars with shared economy, this liberates 23 hours and 8 minutes cars are not used on average a day. A significant growth in powerful mega-fleets manage the tens of millions of cars enabling consolidation of OEMs as well as the tens of thousands of dealers. This means all these companies will have to adapt business as needed.

The tech industry’s potential involvement in auto industry

Another exciting change in the auto market is the possibility of tech industry’s involvement in car making. Morgan Stanley analysts admit it would be surprising if technology greats like Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) or, Inc. (NASDAQ:AMZN) or even ride companies (like Uber or Lyft) were not involved in designing or manufacturing vehicles with unique features. It is believed that in the next five to ten years, the sheer number of new companies and market cap could exceed the number and value that is typically under an auto analysts coverage today. Thanks to all these big changes, some companies may need to reevaluate business or realign strategies if they want to remain in business.

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