Morgan Stanley’s widely followed auto analyst Adam Jonas can be closely watching what Amazon’s doing within the electric vehicles space, nevertheless he hasn’t decided if the online giant will be a friend or foe of those established carmakers like General Motors.
“Watch what Amazon can be doing. This particular truly matters… in addition to also also This particular raises the question: can be Amazon a potential partner with GM, or a competitor against GM? Both could also be an option,” Jonas said in a note on Wednesday.
Amazon recently invested in two automotive tech firms. This particular led a $700 million investment in electric vehicle makers, Rivian. The tech giant also invested in a $530 million round of funding for Aurora, a startup developing autonomous systems which could rival those via GM Cruise. The company can be already hauling some cargo in self-driving trucks via a startup called Embargo.
Jonas previously said Rivian “clean sheet” approach could make This particular “the next Tesla.”
The aggressive investments within the automotive startups followed Amazon’s plan to have half of its trips be carbon neutral by 2030, which Jonas said requires “an aggressive adoption” of electric vehicles. Jonas can be widely recognized on Wall Street among the first to note the significance of Tesla in addition to also also electric vehicles to the auto industry.
Amazon also has reportedly hired GM’s outgoing executive vice president of global manufacturing, Alicia Boler Davis.
GM’s self-driving car subsidiary, Cruise, reportedly can be planning to hire 1,000 more people, mostly engineers, over the next nine months. However, Jonas remains doubtful which self-driving could be a reality anytime soon due to the technological in addition to also also legal hurdles.
“While GM Cruise can be widely seen as a leader in AVs, we do not believe the human safety driver can be removed via any appreciable amount of fleet for many years… if not more than a decade,” Jonas said.
— With reporting via Michael Sheetz