Please be aware that this Portfolio may be subject to certain additional risks. Information does not address financial objectives, situation or specific needs of individual investors. Published Mon, Jan 17 20226:22 AM EST. Terms of Use. Morgan Stanley leadership is dedicated to conducting first-class business in a first-class way. Autonomous vehicles could change not only the way we move from point A to point B, but also how we live our lives. We lead with exceptional ideas, prioritize diversity and inclusion and find meaningful ways to give backall to contribute to a future that benefits our clients and communities. | Are autonomous cars the killer application for 5G? According to Nicholas Ashworth, Co-Head of European Utilities Research, a consensus has yet to emerge on the number of public charging points needed to service the BEV fleet. "They've made some really good progress," said Abuelsamid, who speaks with Argo regularly. It won't exceed 25 miles per hour, but it does have electric motors in all four wheels for slippery roads and tight corners. Wide adoption of BEVs will also expand the need for an entire new level of electrical and electronic systems that dont exist in internal combustion vehicles. The list features employees from Tesla, Zoox, Morgan Stanley, and more. We value our commitment to diverse perspectives and a culture of inclusion across the firm. Privacy & Cookies Portfolios are subject tomarket risk, which is the possibility that the market values of securities owned by the Portfolio will decline and that the value of Portfolio shares may therefore be less than what you paid for them. There are also schemes where the end user pays a fixed monthly fee affording them unlimited miles, akin to mobile phone pricing, says Ashworth. The path from here involves many hundreds of billions of dollars of capital investment across the sector stack including autos, commodities, cap goods and the supporting infrastructure.. Global institutions, leading hedge funds and industry innovators turn to Morgan Stanley for sales, trading and market-making services. For example, with an ability to make four times as many trips as a regular car, flying cars could revolutionize the ride-sharing industry. While a handful of automakers have already launched BEVs, increased consumer interestand an increasingly tight regulation landscapewill lead others to do so. Autonomous car networks can create and consume massive amounts of wireless data. Already, a few large automakers who dont have electric-powered models have announced plans to introduce their own BEV lines. Urban Air Mobility Global Total Addressable Market (Base Case). Its more like a freight train that starts slow, builds momentum, and then pulls a lot of weight for the long haul. A monthly outlook for global fixed income markets, including an in-depth review of key sectors. Yeung notes that the Chinese government has invested heavily in public transportation. Prior to making any investment decision, investors should carefully review the strategys relevant offering document. Our culture of access and inclusion has built our legacy and shapes our future, helping to strengthen our business and bring value to clients. There is no assurance that a Portfolio will achieve its investment objective. Morgan Stanley analyst Katy Huberty explained the profit potential for Apple in a research note she issued in January. Warning investors that a Tesla stock is high risk and high reward is his. We have the experience and agility to partner with clients from individual investors to global CEOs. Terms of Use. It is the responsibility of every person reading this material to fully observe the laws of any relevant country, including obtaining any governmental or other consent which may be required or observing any other formality which needs to be observed in that country. While battery costs have dropped nearly 30% per year for the past five years, that decrease largely has been a function of improved production scale, which now is diminishing. "We expect a potential announcement of proof of reality in a North American metropolitan area as early as 2016.". Subscriptions Trucks is one of the top venture-capital firms in the autonomous-vehicle industry. Auto dealers could stop selling cars altogether and evolve into a 100% service model in a highly consolidated group of mega-fleet managers. On the other hand, the country's social landscape is discouraging, as private car ownership is deeply woven into the American cultural fabric. Although the idea of flying cars may seem fantastical, much of the ecosystem is already in development in complementary technologies. We leverage the full resources of our firm to help individuals, families and institutions reach their financial goals. Morgan Stanley helps people, institutions and governments raise, manage and distribute the capital they need to achieve their goals. However, as shared, autonomous vehicles become more widespread, Jonas suggests that total miles traveled may serve as a more useful yardstick because it better reflects not only the state of the market, but also the industry's evolving business model. A former trade negotiator for the Obama administration, Lia Theodosiou-Pisanelli is now Aurora's head of partnerships, product, and programs. Stay abreast of the latest trends and developments. And, Farshchi added, Zoox's software has played a key role in setting the company apart from its competitors. It is difficult to predict the timing, duration, and potential adverse effects (e.g. During a brief appearance at a Morgan Stanley conference today, CEO Elon Musk briefly commented that the vehicles to be built on Tesla's next-gen platform will operate "almost entirely in. Would you like to help us improve our coverage of topics that might interest you? Andrew Slimmon, lead portfolio manager of the Applied Equity Advisors suite of funds and strategies shares his TAKE -- Takeaways & Key Expectations on the financial markets. The first challenge was for participants to demonstrate the safe operation of a piloted or remotely piloted aircraft capable of carrying at least one adult passenger within a simulated, challenging urban environment.". Find a Financial Advisor, Branch and Private Wealth Advisor near you. 2 2016 Was the Deadliest Year on American Roads in Nearly a Decade, Fortune, February 15, 2017. Road traffic injuries, World Health Organization, August 16, 2017. Morgan Stanley is differentiated by the caliber of our diverse team. Puneeth Meruva is the firm's "first filter" in deciding which companies to invest in, Trucks general partner Reilly Brennan told Insider. In 1940, automaker Henry Ford said, "Mark my words: a combination airplane and motorcar is coming." "Whenever I'm hearing about a big deal going down, I'm usually trying to get a hold of Regina to see what she's heard," he said. We lead with exceptional ideas, prioritize diversity and inclusion and find meaningful ways to give backall to contribute to a future that benefits our clients and communities. How to pay for such charging also remains an open question, now that free charging seems to have gone by the wayside. According to a new Morgan Stanley report, the effects of this shift will be dramatic for automakers but they will be far from the only industry disrupted, with opportunities and challenges throughout the automotive supply chain. In a new BluePaper from Morgan Stanley Research, a cross-section of the firms equity analysts detail how investment in autonomous flying aircraft is accelerating, with implications for the future of passenger travel, military and defense applications, and freight and package transportation. Derivative instrumentsmay disproportionately increase losses and have a significant impact on performance. Counterpoint Global consists of 56 people, including 32 investors, four disruptive change researchers, two consilient researchers and two sustainability researchers. At Morgan Stanley, giving back is a core valuea central part of our culture globally. Over 90% of all traffic accidents are caused by human error.1 With 40,000 U.S. traffic fatalities and 1.2 million globally every year,2 removing humans from the driving equation could significantly reduce accidentspotentially benefiting both vehicle-related injury and mortality while reducing health care spending and the potential revenue opportunity for property and casualty insurance. Under Estrada, Nuro has also become the first company to test driverless vehicles in three states, a Nuro spokesperson told Insider. The first can perform tasks independently without human intervention, such as the operation of autonomous vehicles, personal assistants and drones. Several possibilities exist around the development of public stations, ranging from those sponsored by automakers and available only to drivers of their vehicles, to those financed and maintained by governments or utilities, or perhaps another model. Morgan Stanley is differentiated by the caliber of our diverse team. All investments involve risks, including the possible loss of principal. Underpinning all that we do are five core values. Elshenawy has helped Cruise engineers quickly test and deploy code while overseeing a cloud-computing infrastructure that held up well as the company shifted to a remote-work model in 2020, a Cruise representative said. From our origins as a small Wall Street partnership to becoming a global firm of more than 80,000 employees today, Morgan Stanley has been committed to clients and communities for 87 years. Stay abreast of the latest trends and developments. The autonomous aircraft ecosystem would also include makers of sensors, batteries, aircraft parts, and the software systems to operate the vehicles, monitor aircraft traffic, provide network security and more. Autonomous vehicles could change not only the way we move from point A to point B, but also how we live our lives. In other words, the skys the limit. We live that commitment through long-lasting partnerships, community-based delivery and engaging our best assetMorgan Stanley employees. From our origins as a small Wall Street partnership to becoming a global firm of more than 80,000 employees today, Morgan Stanley has been committed to clients and communities for 87 years. Meruva was a software engineer at Uber and BMW before joining Trucks. It is difficult to predict the timing, duration, and potential adverse effects (e.g. From our startup lab to our cutting-edge research, we broaden access to capital for diverse entrepreneurs and spotlight their success. Multicultural and women entrepreneurs are the cutting-edge leaders of businesses that power markets. Our firm's commitment to sustainability informs our operations, governance, risk management, diversity efforts, philanthropy and research. But what are the business implications for manufacturers as the world flips the switch from combustion to battery? Whether its hardware, software or age-old businesses, everything today is ripe for disruption. Share. Flying cars could initially gain market share from cars on the road, planes and public transportation. The firm cites how cars are only utilized 4 percent of the time and more than 600 billion hours . But electric cars could be seen as a welcome solution to China's concerns about air pollution, and its growing Internet and mobile app market has already opened the door to the development of on-demand ride-hailing technology. document.write(new Date().getFullYear()); MorganStanley.All rights reserved. Counterpoint Global discusses the evolution of enterprise drones and its disruptive impact. Morgan Stanley thinks time spent in cars will jump by 25% by 2030 and these stocks will benefit. In-depth insights on emerging and global markets for spotting hot growth stories. The first applications should take the form of small fleets, traveling slower than 25 miles per hour, fully autonomous, fully electric, and geographically limited to as little as one square mile. As a global financial services firm, Morgan Stanley is committed to technological innovation. Mobileye has been a leader in bringing automated-driving technology to the road through its advanced driver-assistance software and hardware. Autonomous cars combine a variety of techniques to perceive their surroundings, including radar, laser light, GPS, odometry, and computer vision. A timely analysis of market-changing events and their impact on the investment landscape. Illiquid securitiesmay be more difficult to sell and value than public traded securities (liquidity risk). We leverage the full resources of our firm to help individuals, families and institutions reach their financial goals. Most of the battery cell costs are driven by the price of materials and composition, Hendrikse says. Sign up to get Morgan Stanley Ideas delivered to your inbox. All rights reserved. Given a combination of the right public policy, partnerships and positive outcomes for public health and safety, economic development and growth, the new models can adjust, optimize and scale up and out. The views and opinions are those of the author as of the date of publication and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. Hear their stories and learn about how they are redefining the terms of success. These considerations, coupled with large amounts of capital infusion, should accelerate the adoption of autonomous, electrified urban air mobility. "The sooner investors can make the transformation, we believe the more industry events will make sense over the next 12 to 24 months, as the story of industry disruption likely unfolds," says Jonas, who first called out the emerging trend of shared mobility as early as 2014, and has since been exploring its ramifications through the auto industry, changes in consumer behavior and the evolving technologies reshaping this space. Slow dealmaking. We provide comprehensive workplace financial solutions for organizations and their employees, combining personalized advice with modern technology. The firm looks at about 100 startups a month, and Meruva is usually the first person to meet with them. To what degree these factors will impede or accelerate market change varies by country and region. At Morgan Stanley, youll find trusted colleagues, committed mentors and a culture that values diverse perspectives, individual intellect and cross-collaboration. Yet, its worth considering: Passengers in autonomous vehicles wont just be consuming media, entertainment and next-gen broadband connectivitythey will likely also be eating and drinking, without having to worry about safety. Since our founding in 1935, Morgan Stanley has consistently delivered first-class business in a first-class way. We help people, businesses and institutions build, preserve and manage wealth so they can pursue their financial goals. "I would credit a lot of what you find that's differentiating to him and his team," Farshchi said of Rege. All rights reserved. And, Brennan said, her connections are second to none. Advancements in mobile technology that allow users to summon cars from their smartphones have already made sharing more convenient, and more progress is to come. Morgan Stanley leadership is dedicated to conducting first-class business in a first-class way. Hear their stories and learn about how they are redefining the terms of success. We offer scalable investment products, foster innovative solutions and provide actionable insights across sustainability issues. Without control over powertrain, and with greater supplier content than ever before, it could be much harder for the major automakers to maintain their competitive position, branding, and pricing power. This late in the business cycle, investors should emphasize actively-managed funds and income-producing securities with reasonable valuations. Check the background of Our Firm and Investment Professionals on FINRA's Broker/Check. Chipmakers that can integrate auto-vision. We have global expertise in market analysis and in advisory and capital-raising services for corporations, institutions and governments. Since our founding in 1935, Morgan Stanley has consistently delivered first-class business in a first-class way. Ask your Morgan Stanley representative or Financial Advisor for the full report, "The Shared Autonomous 30" (Sep 22, 2016). Andrew Slimmon, lead portfolio manager of the Applied Equity Advisors suite of funds and strategies shares his TAKE -- Takeaways & Key Expectations on the financial markets. In logistics, drone package delivery is in active testing. Morgan Stanley gets to the heart of this issue in their latest report out this week on autonomous developments and finds there's a good reason why both Apple and Alphabet are delaying plans to . Whereas the per-mile operating costs of shared vehicles today far outweigh those of privately owned vehicles, autonomous cars unburdened by driver-cost could achieve a shared cost per mile below that of owned vehicles by as early as 2030, according to Morgan Stanley. These include: low utilization (on average, cars are used 4% of a day, with an available seat-mile utilization of barely 1%); consumption of finite resources (cars consume 500 billion gallons of fuel a year, accounting for 45% of global oil demand); and public safety (roughly 3,500 traffic fatalities per day globally). National Highway Transportation Safety A dministration (NHTSA 2013): Morgan Stanley helps people, institutions and governments raise, manage and distribute the capital they need to achieve their goals. Global institutions, leading hedge funds and industry innovators turn to Morgan Stanley for sales, trading and market-making services. In the autonomous-vehicle industry, it can be difficult to identify the most important supporting players from the outside. Investments inforeign marketsentail special risks such as currency, political, economic, market and liquidity risks. Apple's potential autonomous car is called the ultimate EV bear case by Morgan Stanley Nov. 19, 2021 7:50 AM ET Apple Inc. (AAPL) , TSLA , APTV , BWA GM , AN , CAR , RACE , CVNA , QS , FSR , LCID . The global presence that Morgan Stanley maintains is key to our clients' success, giving us keen insight across regions and markets, and allowing us to make a difference around the world. Automated driving technology relies heavily on continuous, high-precision, and high-reliability positioning in complex urban situations. Check the background of our firm and registered representatives on FINRA's BrokerCheck. We have global expertise in market analysis and in advisory and capital-raising services for corporations, institutions and governments. From volatility and geopolitics to economic trends and investment outlooks, stay informed on the key developments shaping today's markets. The autonomous-vehicle industry has been a hot sector for investment banks in recent years, and Regina Savage has emerged as one of the industry's key dealmakers, Brennan said. Prospects in other regions vary. However, OEMS and suppliers which provide superior technology (hardware, software, integrated experiential design) or quality and scale for key features (fuel efficiency, safety, lightweight materials, etc.) "And as long as these vehicles are human-driven, logistical inefficiencies will persist. "India has all the right ingredients to become one of the largest markets for shared mobility in the world," says Morgan Stanley analyst Binay Singh. A monthly outlook for global fixed income markets, including an in-depth review of key sectors. David Estrada oversees Nuro's policy, legal, communications, and safety teams. Across all our businesses, we offer keen insight on today's most critical issues. Its an opportunity to roll out the. As expected, addressing safety will be at the top of regulators' lists. They also may be subject to counterparty, liquidity, valuation, correlation and market risks. Morgan Stanley is differentiated by the caliber of our diverse team. Companies are scrambling to figure out last-mile delivery, sometimes even incentivizing the customer to pick up from the store. JPMorgan Chase is acquiring all the deposits and 'substantially all of the assets' of regional . In 2018, Morgan Stanley published a research note valuing the company at $175 billion based on its perceived leadership in the space and the potential for massive amounts of revenue from its. Jim Caron, Co-Lead Global Portfolio Manager and Co-Chief Investment Officer of the Global Balanced Risk Control (GBaR) Team, shares his macro thematic views on key market drivers. 2023Morgan Stanley. Since our founding in 1935, Morgan Stanley has consistently delivered first-class business in a first-class way. The market could likely begin as an ultra-niche add-on to existing transportation infrastructure, similar to how helicopters operate today. We offer scalable investment products, foster innovative solutions and provide actionable insights across sustainability issues. See how you can make meaningful contributions as a student or recent graduate at Morgan Stanley. Multicultural and women entrepreneurs are the cutting-edge leaders of businesses that power markets. That's around a billion tons of TNTthe energy equivalent of some 60 thousand WWII-era atomic bombs. It is important that users read the Terms of Use before proceeding as it explains certain legal and regulatory restrictions applicable to the dissemination of information pertaining to Morgan Stanley Investment Management's investment products. Drones and VTOLs could be part of the evolving solution of last-mile parcel delivery challenges, says Ravi Shanker, equity analyst covering the North American transportation industry. The global presence that Morgan Stanley maintains is key to our clients' success, giving us keen insight across regions and markets, and allowing us to make a difference around the world. "Compared to the other regions globally, we assume slower miles-traveled growth and lower shared-mobility penetration in Europe," says Morgan Stanley analyst Harald Hendrikse. Legacy suppliers for seats, wheels, tires and safety mechanisms should make the transition somewhat seamlessly, but powertrain, transmission and fuel systems manufacturers who have built business models around internal combustion will likely face headwinds as BEV adoption increases. Macro and thematic insights shaping the global investment landscape. Original equipment manufacturers (OEM) and suppliers to the auto industry will face new competitors with advantages in software, consumer electronics, and cost of capitaland some may struggle to attract and retain the best talent. Our board of directors and senior executives hold the belief that capital can and should benefit all of society. Before joining Zoox, Rege was an executive at Nvidia, where he oversaw the development of the company's automated-driving platform and drone technology. As of now, there are few battery-powered drones that can carry much more than 10 pounds. Zoox has taken a difficult and unusual approach compared to its peers: While most of its rivals are focusing on automated-driving software or hardware, Zoox is designing and assembling an autonomous vehicle, all without the help of a major automaker. There is no assurance that a Portfolio will achieve its investment objective. Finally, mass adoption of BEVs will also require a more robust charging infrastructure which could present opportunities for utilities and capital goods. Browning was a senior faculty member of Carnegie Mellon's Robotics Institute and worked on mapping and localization technology for Uber's autonomous-vehicle unit before joining Argo, in 2016. Insider asked self-driving startups, analysts, and VCs to nominate the industry's biggest stars. Before joining Aurora, in 2019, she was Lyft's director of business development and strategy, where she focused on automated-driving technology. Illiquid securitiesmay be more difficult to sell and value than public traded securities (liquidity risk). The Morgan Stanley Freight Transportation team believes that autonomous and semiautonomous driving technology will be adopted far faster in the cargo markets than in passenger markets. 1 The Relative Frequency of Unsafe Driving Acts (Background), National Highway Traffic Safety Administration, August 15, 2017. We live that commitment through long-lasting partnerships, community-based delivery and engaging our best assetMorgan Stanley employees. Apple has about one-third of this market. Hayon, one of Mobileye's first employees, led the development of software that allows Mobileye ADAS systems to understand how nearby objects are moving so that they can warn the driver or take evasive action to avoid a collision. During Estrada's tenure, Nuro became the first autonomous-vehicle company to receive an exemption from select federal safety standards. All rights reserved. Autonomous vehicles could change not only the way we move from point A to point B, but also how we live our lives. One of the Morgan Stanley's report clearly estimates that replacing traditional automobiles with autonomous cars in the United States alone could contribute . This kind of transformation isnt a flashy two-seater with lots of zoom but limited accommodation. /pub/content/dam/im/json/imwebdata/im/data/misc/translation/translation.json, /pub/content/dam/im/json/imwebdata/im/data/misc/translation/aggTranslation.json. Morgan Stanley estimates that in 2030, cars will drive more than 19.6 billion miles worldwide, far higher than the 10.2 billion they traveled in 2015. According to Harald Hendrikse, Morgan Stanleys Equity Analyst for European Autos & Shared Mobility, the range of profitability outcomes for these players is wide and will likely rely on factors such as BEV growth, price impacts on internal combustion vehicles, and gross margins for electric vehicles. Electric-powered vehicles can deliver yet more efficiency. For instance, one of the key drivers of autonomous vehicle adoption is improved safety. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. Morgan Stanley: Autonomous Cars May Save US a Trillion Dollars Home Transportation [INFOGRAPHIC] Autonomous Cars Could Save The US $1.3 Trillion Dollars A Year Benjamin Zhang Sep 12,. will be well-positioned for long-term growth. Whether its hardware, software or age-old businesses, everything today is ripe for disruption. We offer timely, integrated analysis of companies, sectors, markets and economies, helping clients with their most critical decisions. This is a nascent market, and there will be many different ways to pay for BEV charging in the coming years.. From our startup lab to our cutting-edge research, we broaden access to capital for diverse entrepreneurs and spotlight their success. Morgan Stanley's Adam Jonas, who covers Tesla, referred to Apple's car as "the ultimate EV bear case" and called the tech giant's entry into the space a "clear negative for much of our. Any charts and graphs provided are for illustrative purposes only. Motional is one of two companies that operate autonomous ride-hailing vehicles that are open to the public. At Morgan Stanley, we focus the expertise of the entire firmour advice, data, strategies and insightson creating solutions for our clients, large and small. A monthly publication featuring the Global Multi-Asset Teams latest views on the economic and market environment and how best to position portfolios. Shared carstaxis and cars operated by ride-sharing companies, but not car rentalin 2015 accounted for 4% of global miles traveled, but by 2030, Morgan Stanley estimates that number could reach 26%. We rely on our technologists around the world to create leading-edge, secure platforms for all our businesses. All investments involve risks, including the possible loss of principal. as well as fewer regulatory hurdles. Called STEEPL, the tool is used to gauge a region's social, technological, economic, environmental, political and legal landscape as it pertains to the automotive market. Not every day you see a chart like this in a street research piece. "Smartphones are a $500bn annual TAM. The second augments human capabilitiesfor example, collaborating with a physician to diagnose diseases or even perform surgery. The Market Monitor series includes a wide array of market charts and views to guide your investing discussions. MORGAN STANLEY RESEARCH November 6, 2013 Autonomous Cars: Self-Driving the New Auto Industry Paradigm Contributors to this Report Autos & Auto-Related Ravi Shanker1 Adam Jonas1 Paresh Jain1 Yejay Ying1 +1 (212) 761-6350 +1 (212) 761-1726 +1 (212) 761-3354 +1 (212) 761-7096 We believe our greatest asset is our people. Adam Jonas, Morgan Stanley's Head of Global Auto & Shared Mobility Research, says "A confluence of competitive, technological and regulatory forces have pulled-forward auto maker's plans to aggressively introduce EVs over the next 3 to 5 years vs. 20 to 25 years previously. We deliver active investment strategies across public and private markets and custom solutions to institutional and individual investors. For European banks, financial inclusion is not only socially responsibleit may help drive sustained economic growth in emerging markets. For investors, the rise of autonomous vehicles has the potential to impact industries as far afield as health care, insurance, internet and infrastructure. Discover who we are and the right opportunity for you. A more bullish forecast places the market at $2.9 trillion. Legal issues and likely objections to autonomous technology from auto workers and dealers are also discouraging, but not enough to halt development, Jonas says.
