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. A Morgan Stanley team of analysts, including noted Apple analyst Katy Huberty, estimates that by 2040 the time humans spend inside cars will reach 1.2 trillion hours a year, up from 600. That's around a billion tons of TNTthe energy equivalent of some 60 thousand WWII-era atomic bombs. Macro and thematic insights shaping the global investment landscape. How to pay for such charging also remains an open question, now that free charging seems to have gone by the wayside. IT hardware-software and Internet and media companies can get fairly creative about how passengers end up passing their time riding in autonomous cars. Autonomous car networks can create and consume massive amounts of wireless data. 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. Learn from our industry leaders about how to manage your wealth and help meet your personal financial goals. The firm cites how cars are only utilized 4 percent of the time and more than 600 billion hours . Everything we do at Morgan Stanley is guided by our five core values: Do the right thing, put clients first, lead with exceptional ideas, commit to diversity and inclusion, and give back. UPDATE 2-Morgan Stanley to cut 3,000 jobs in second quarter - source Morgan Stanley leadership is dedicated to conducting first-class business in a first-class way. document.write(new Date().getFullYear()); MorganStanley.All rights reserved. Finally, mass adoption of BEVs will also require a more robust charging infrastructure which could present opportunities for utilities and capital goods. Cathode manufacturers are gearing up for substantial increases in production but could face associated pressure on their pricing levels. Published Mon, Jan 17 20226:22 AM EST. Past performance does not guarantee future results. Browning and Argo have also impressed Sam Abuelsamid, a research analyst at Guidehouse Insights who covers automotive technology. Global institutions, leading hedge funds and industry innovators turn to Morgan Stanley for sales, trading and market-making services. 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. Since Nuro's delivery vehicles don't carry people, the National Highway Traffic Safety Administration ruled they didn't need some features that would be required in passenger cars, like side mirrors and windshields. Whether its hardware, software or age-old businesses, everything today is ripe for disruption. Apple shares hit record, plans build self-driving car as soon as 2025 Counterpoint Global investigates the impact of quantum computers and its potential to tackle previously unsolvable computing problems. For investors, the rise of autonomous vehicles has the potential to impact industries as far afield as health care, insurance, internet and infrastructure. We deliver active investment strategies across public and private markets and custom solutions to institutional and individual investors. Everything we do at Morgan Stanley is guided by our five core values: Do the right thing, put clients first, lead with exceptional ideas, commit to diversity and inclusion, and give back. From a list of more than 40 people, Insider selected those who appear to be having the greatest influence on their companies and the industry as a whole. Long-term trends, including technology's impact on pricing, are likely to keep inflation at bay for longer than economists originally expected. Any charts and graphs provided are for illustrative purposes only. At Morgan Stanley, we focus the expertise of the entire firmour advice, data, strategies and insightson creating solutions for our clients, large and small. $TSLA pic.twitter.com/P4wD5TtDUH During Elshenawy's tenure at Cruise, the company's approach has impressed experts, who have ranked Cruise among the most promising autonomous-vehicle companies. Battery costs have been a major barrier to increasing BEV penetration. Shared and automated transport addresses significant inefficiencies in the current industry model. Military drones have been around for years, and electrified, autonomous vertical takeoff and landing vehicles (VTOLs) are gaining traction. We provide comprehensive workplace financial solutions for organizations and their employees, combining personalized advice with modern technology. Before joining Tesla, in 2017, he worked at OpenAI as a research scientist. It is not addressed to any other person and may not be used by them for any purpose whatsoever. Morgan Stanley the Economic Benefits of Driverless Cars Past performance does not guarantee future results. We have global expertise in market analysis and in advisory and capital-raising services for corporations, institutions and governments. If Zoox's all-in-one strategy pays off, Piper will have played a major role in making it work. For 87 years, weve had a passion for whats possible. Electric utilities would benefit from the shift away from the pump to plug-in charging, as electric vehicles gain more consumer traction. 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.) Indeed, Many of the full benefits of a shared, electric, and autonomous ecosystem may take decades to fully play out, he says, but industry developments and investor appreciation of the technological path can have a material impact on share prices of select companies even over a three-year horizon.. Hear their stories and learn about how they are redefining the terms of success. Motional is one of two companies that operate autonomous ride-hailing vehicles that are open to the public. /pub/content/dam/im/json/imwebdata/im/data/misc/translation/translation.json, /pub/content/dam/im/json/imwebdata/im/data/misc/translation/aggTranslation.json. Across all our businesses, we offer keen insight on today's most critical issues. While some investors may be cheering softer-than-expected inflation data, revenues may begin to disappoint in the face of a credit crunch brought on by recent banking stress. For Morgan StanleyResearchon urban air mobility, ask your Morgan Stanley representative orFinancial Advisorfor the full report, Flying Cars: Investment Implications of Autonomous Urban Air Mobility" (Dec. 2, 2018). Level 3 Autonomous Vehicle Market Outlook by 2031 For European banks, financial inclusion is not only socially responsibleit may help drive sustained economic growth in emerging markets. Autonomous vehicles could change not only the way we move from point A to point B, but also how we live our lives. Any performance quoted represents past performance. "Vehicle sharing can only take your vehicle utilization to about 50%-60% of its full potential, in our view," says Jonas. Adam Jonas Of Morgan Stanley: Tesla [TSLA] Is A Must Own. But What Meet one of our Financial Advisors and see how we can help you. Such a future of shared, fully electric, driverless cars on demand is closer to reality than it might appear. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) and its subsidiaries and affiliates (collectively the Firm), and may not be reflected in all the strategies and products that the Firm offers. Since our founding in 1935, Morgan Stanley has consistently delivered first-class business in a first-class way. The services described on this website may not be available in all jurisdictions or to all persons. As a global financial services firm, Morgan Stanley is committed to technological innovation. However, it could also open up a whole new world of business across multiple sectors. In general,equities securitiesvalues also fluctuate in response to activities specific to a company. 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). We have global expertise in market analysis and in advisory and capital-raising services for corporations, institutions and governments. 8 Stocks Fueled by the Autonomous Vehicle Race - Investopedia They also may be subject to counterparty, liquidity, valuation, correlation and market risks. We provide comprehensive workplace financial solutions for organizations and their employees, combining personalized advice with modern technology. Any performance quoted represents past performance. There is no assurance that a Portfolio will achieve its investment objective. Stay abreast of the latest trends and developments. Mohamed Elshenawy has led Cruise's software team through a period of rapid growth as the company works toward launching robotaxi services in San Francisco and Dubai. We help people, businesses and institutions build, preserve and manage wealth so they can pursue their financial goals. Urban Air Mobility Global Total Addressable Market (Base Case). In recent months, Motional has taken the backup drivers out of some of its test vehicles and, in 2023, the company plans to expand its relationship with Lyft by launching a fully autonomous ride-hailing service. Apple and Hyundai-Kia pushing toward deal on Apple Car - CNBC Under that scenario, by mid-century BEVswould comprise as much as 90% of all vehicle sales. From our startup lab to our cutting-edge research, we broaden access to capital for diverse entrepreneurs and spotlight their success. It's still early days for urban air mobility, but Morgan Stanley Research believes that autonomous aircraft could be common by 2040. Our board of directors and senior executives hold the belief that capital can and should benefit all of society. "We see the first serious application of fully autonomous transport to be in the form of public-private partnerships at a hyper-localized level of a city center," Jonas says. The list features employees from Tesla, Zoox, Morgan Stanley, and more. 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. Morgan Stanley shared its favorite 30 autonomous driving stock picks in a note to clients Thursday. Autonomous vehicles on the other hand remove the human bottleneck and the economics change substantially.". 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. 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. Instead the regulatory and societal concerns surrounding the technology will need to catch up to the tech itself, Jonas says. For investors, the rise of autonomous vehicles has the potential to impact industries as far afield as health care, insurance, internet and infrastructure. Tell us about yourself. Autonomous cars combine a variety of techniques to perceive their surroundings, including radar, laser light, GPS, odometry, and computer vision. A monthly outlook for global fixed income markets, including an in-depth review of key sectors. Already, a few large automakers who dont have electric-powered models have announced plans to introduce their own BEV lines. Morgan Stanley leadership is dedicated to conducting first-class business in a first-class way. 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. In other words, the skys the limit. 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. It's the only custom-built robotaxi that can drive up to 75 mph, a Zoox representative said. We believe our greatest asset is our people. Counterpoint Global discusses the evolution of enterprise drones and its disruptive impact. Morgan Stanleys U.S.Researchteams worked together to identify 30 companies that they believe are favorably exposed to growth opportunities in a world moving toward shared mobility, autonomous driving, and electrification. Plus, more Ideas. 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. 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. 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 U.S. car parc consumes around 1,200 terawatt hours of equivalent electrical energy each year. portfolio liquidity) of events. Beyond the production of the cars themselves, several other factors will affect their take, including cultural views surrounding private car ownership, the legal implications of driverless cars and the level, if any, of government support. While banking conditions seem to have stabilized for now, tighter credit conditions could still hit U.S. economic growth. Its not surprising that so many firms are directing significant strategic efforts and investment toward delivering and monetizing content and data opportunities. The report notes that flying cars could even give gaming and nightlife customers easier access to Las Vegas, which suffers from infrastructure headwinds, such as a lack of direct train service and heavy traffic from Los Angeles on busy weekends. As a global financial services firm, Morgan Stanley is committed to technological innovation. A monthly outlook for global fixed income markets, including an in-depth review of key sectors. Mobileye has been a leader in bringing automated-driving technology to the road through its advanced driver-assistance software and hardware. The natural solution appears to be more shared vehicles. The semiconductor industry has benefited for decades from the digitalization of vehicles and driving in general, but autonomous cars represent a sophisticated blend of computer power and artificial intelligence for navigating the countless number of real-world driving scenariosin real time. 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. Plus, moreIdeas. See how you can continue your career journey at Morgan Stanley. David Estrada oversees Nuro's policy, legal, communications, and safety teams. 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. Limitations remain, primarily related to batteries and propulsion technology. "Laura and the Motional team are behind some of the self-driving industry's largest leaps forward," a Motional spokesperson told Insider. Our culture of access and inclusion has built our legacy and shapes our future, helping to strengthen our business and bring value to clients. Macro and thematic insights shaping the global investment landscape. Any charts and graphs provided are for illustrative purposes only. In-depth insights on emerging and global markets for spotting hot growth stories. Although the idea of flying cars may seem fantastical, much of the ecosystem is already in development in complementary technologies. 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. | Are autonomous cars the killer application for 5G? From volatility and geopolitics to economic trends and investment outlooks, stay informed on the key developments shaping today's markets. That pace of growth is much higher than the estimated production of cars and light vehicles during the same period. Hear their stories and learn about how they are redefining the terms of success. Regina Savage, global head of automotive and mobility technology, Morgan Stanley Regina Savage The autonomous-vehicle industry has been a hot sector for investment banks in recent years,. In November 2013 Morgan Stanley announced their blue paper report: "Autonomous Cars: Self-Driving the New Auto Industry Paradigm." The authors predicted trillions in savings but the announcement provided little data on where those savings would come from. In the transport sector, autonomous trucks may offer substantial growth and cost-cutting opportunities to fleet operators that can apply the optimal technologies to transform their existing networks. We live that commitment through long-lasting partnerships, community-based delivery and engaging our best assetMorgan Stanley employees. The impact of flying cars would only be limited by imagination. Apple's potential autonomous car is called the ultimate - SeekingAlpha Hear their stories and learn about how they are redefining the terms of success. Get the latest insights, analyses and market trends in our newsletter, podcasts and videos. In the auto supply chain, BEVs could drive new opportunities for suppliers since newer products typically have higher prices and higher margins. Current numbers vary widely from country to country, depending on the maturity of the market. "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. Our firm's commitment to sustainability informs our operations, governance, risk management, diversity efforts, philanthropy and research. A timely analysis of market-changing events and their impact on the investment landscape. 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. In general,equities securitiesvalues also fluctuate in response to activities specific to a company. See how we can help you work toward your goalseven as they evolve over years or generations. Reducing the cost, decreasing noise and creating aircraft that essentially levitatenot takeoff via a runawayare also key considerations. But the ultimate goal of industry leaders is moving people. Before joining Morgan Stanley, Savage worked on mergers and acquisitions in the media industry at Goldman Sachs. That number. The industry implications for recasting the global mobility model extend far beyond just the auto industry, affecting large tranches of the economy and the investment landscape, says Adam Jonas, head of auto and shared mobility research at Morgan Stanley. Find a Financial Advisor, Branch and Private Wealth Advisor near you. Our insightful research, advisory and investing capabilities give us unique and broad perspective on sustainability topics. The firm's telecom . Morgan Stanley is differentiated by the caliber of our diverse team. 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. The trillion-hour attention economy (and where the Apple Car fits in At Morgan Stanley, giving back is a core valuea central part of our culture globally. From our startup lab to our cutting-edge research, we broaden access to capital for diverse entrepreneurs and spotlight their success. Morgan Stanley helps people, institutions and governments raise, manage and distribute the capital they need to achieve their goals. A transition to electric vehicles could be equal to one-third of total U.S. For automakers, BEVs are a game changer. 5 Sustainable Investing Trends for Companies and Investors, 7 Investment Ideas That Could Drive Markets in 2023, Yes, You Can Be a Tech Innovator at Morgan Stanley, hours people spend annually driving and riding in cars, India, a country with growing Internet access. From our startup lab to our cutting-edge research, we broaden access to capital for diverse entrepreneurs and spotlight their success. But what are the business implications for manufacturers as the world flips the switch from combustion to battery? 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. Privacy & Cookies 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,. Multicultural and women entrepreneurs are the cutting-edge leaders of businesses that power markets. "They've made some really good progress," said Abuelsamid, who speaks with Argo regularly. For Morgan StanleyResearchon the future of battery powered vehicles, ask your Morgan Stanley representative orFinancial Advisorfor the full report, On the Charge, (Aug. 31, 2017). 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. But in a future of shared, autonomous vehicles with much higher utilization, electric cars make far more economic sense than their gasoline counterparts. Meruva was a software engineer at Uber and BMW before joining Trucks. "Miles" rather than cars sold" delivers the message that the industry is moving toward some combination of auto sales and incremental sales of auto-based transport. Morgan Stanley found 30 ways to invest in autonomous driving trend - CNBC This move clearly indicates GM strategy to invest heavily on electric and autonomous cars and minimize expenses in current business to carve out ways to invest in new technologies. It is difficult to predict the timing, duration, and potential adverse effects (e.g. At Morgan Stanley, we focus the expertise of the entire firmour advice, data, strategies and insightson creating solutions for our clients, large and small. We see the development of the urban air mobility ecosystem as extremely long-dated, with up-front capital allocation, testing, and development in the short term, says Jonas. As a global financial services firm, Morgan Stanley is committed to technological innovation. How this transition plays out will have significant impact on component suppliers, semiconductor manufacturers, commodities, chemical producers and players in capital goods. Morgan Stanley Distribution, Inc. Heres a look at nine industries that will experience both disruption and opportunity: The rollout of shared/autonomous/electric transport could resemble the spread of the early electric utility grid in the 1880s and 1890s, which grew city-by-city, Jonas says. Morgan Stanley's Wilson Says Hawkish Fed Surprise to Roil Stocks. Since our founding in 1935, Morgan Stanley has consistently delivered first-class business in a first-class way. It involves creating two autonomous systems one using only cameras, the other radar and lidar that can operate safely on their own, then bringing the two systems together. It may have taken professional auto industry analysts some time to understand the impact of autonomous vehicles. All rights reserved. We value our commitment to diverse perspectives and a culture of inclusion across the firm. See how we can help you work toward your goalseven as they evolve over years or generations. There is no assurance that a Portfolio will achieve its investment objective. Counterpoint Globals culture fosters collaboration, creativity, continued development, and differentiated thinking. Urban air mobility represents business opportunities within infrastructure, fleet management, software, hardware and content, much like the opportunity for autonomous vehicles," Jonas says. . Additionally, an aviation company has begun investing in a helicopter ride-hailing service. As of now, there are few battery-powered drones that can carry much more than 10 pounds. 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. Morgan Stanley helps people, institutions and governments raise, manage and distribute the capital they need to achieve their goals. Along the way, plenty of other sectors will be figuring out how they can come along for the ride. There is no assurance that a Portfolio will achieve its investment objective. Most companies are still testing and refining technology that could be years from widespread use, so it's not always clear whose products are working and whose aren't. In the U.S., for example, the technological and economic landscapes are considered encouraging for development of the next wave of vehicles, given Silicon Valley's embrace of autonomous technology and an opening for affordable transportation alternatives. At Morgan Stanley, we put our beliefs to work. They could later transform into a cost-effective, time-efficient method of traveling short to medium distances, eventually taking share from car and airline companies.. To what degree these factors will impede or accelerate market change varies by country and region. An early member of Zoox, Ashu Rege leads the company's software team. 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. In a new BluePaper, Morgan Stanley Research says autonomous urban aircraft may no longer be the stuff of comic books. 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%. See how you can continue your career journey at Morgan Stanley. We offer timely, integrated analysis of companies, sectors, markets and economies, helping clients with their most critical decisions. Across all our businesses, we offer keen insight on today's most critical issues. will be well-positioned for long-term growth. Morgan Stanley has developed a framework to assess the appeal of shared, autonomous and electric vehicles in particular countries and regions. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. At Morgan Stanley, youll find trusted colleagues, committed mentors and a culture that values diverse perspectives, individual intellect and cross-collaboration.

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