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. A timely analysis of market-changing events and their impact on the investment landscape. We believe our greatest asset is our people. In Europe, extensive public transportation options and the political strength of auto and parts manufacturers are obstacles to shared vehicle adoption, but electric vehicles bode well for the region's strengthening emissions standards. The firm looks at about 100 startups a month, and Meruva is usually the first person to meet with them. Since our founding in 1935, Morgan Stanley has consistently delivered first-class business in a first-class way. In general,equities securitiesvalues also fluctuate in response to activities specific to a company. 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. Autonomous vehicles could change not only the way we move from point A to point B, but also how we live our lives. There is no assurance that a Portfolio will achieve its investment objective. See how you can make meaningful contributions as a student or recent graduate at Morgan Stanley. 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. Counterpoint Globals culture fosters collaboration, creativity, continued development, and differentiated thinking. Our monthly Global Equity Observer shares our thoughts on world events as seen through the lens of our high quality investment process. Morgan Stanley helps people, institutions and governments raise, manage and distribute the capital they need to achieve their goals. For instance, one of the key drivers of autonomous vehicle adoption is improved safety. At Morgan Stanley, we focus the expertise of the entire firmour advice, data, strategies and insightson creating solutions for our clients, large and small. 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. Morgan Stanley Blue Paper: Autonomous Cars. Multicultural and women entrepreneurs are the cutting-edge leaders of businesses that power markets. | Are autonomous cars the killer application for 5G? We deliver active investment strategies across public and private markets and custom solutions to institutional and individual investors. 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. Our board of directors and senior executives hold the belief that capital can and should benefit all of society. A monthly publication featuring the Global Multi-Asset Teams latest views on the economic and market environment and how best to position portfolios. 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 software has helped drive the introduction or improvement of numerous safety and convenience features, including automatic emergency braking and steering assistance, a Mobileye spokesperson said. It's still early days for urban air mobility, but Morgan Stanley Research believes that autonomous aircraft could be common by 2040. 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. Morgan Stanley raised its previous enterprise value estimate for the Alphabet unit by $100 billion, with robotic trucking and delivery potential looking like a bigger revenue source than passenger . These considerations, coupled with large amounts of capital infusion, should accelerate the adoption of autonomous, electrified urban air mobility. will be well-positioned for long-term growth. Underpinning all that we do are five core values. We have global expertise in market analysis and in advisory and capital-raising services for corporations, institutions and governments. Around half of the component cost of the battery cell is in the cathode. In-depth insights on emerging and global markets for spotting hot growth stories. Trucks is one of the top venture-capital firms in the autonomous-vehicle industry. 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. 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. portfolio liquidity) of events. The firm cites how cars are only utilized 4 percent of the time and more than 600 billion hours . 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. 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. She's also helped coordinate the integration of Uber ATG's workforce into Aurora's following Aurora's 2020 acquisition of the unit. as well as fewer regulatory hurdles. Global institutions, leading hedge funds and industry innovators turn to Morgan Stanley for sales, trading and market-making services. While many charging points will be private or residentialabout 1.8 million of the existing 2 million charge points worldwide now arequestions remain about the number of faster public charging stations required, who will provide and maintain them and which customers will be permitted to use them. At Morgan Stanley, youll find trusted colleagues, committed mentors and a culture that values diverse perspectives, individual intellect and cross-collaboration. We offer timely, integrated analysis of companies, sectors, markets and economies, helping clients with their most critical decisions. 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. Its new report, Autonomous Vehicles & Municipal Bonds, puts the net positive impact on municipal budgets in excess of half a trillion dollars. Plus, moreIdeas. Terms of Use. National Highway Transportation Safety A dministration (NHTSA 2013): The second augments human capabilitiesfor example, collaborating with a physician to diagnose diseases or even perform surgery. Morgan Stanley is differentiated by the caliber of our diverse team. Battery technology, processing and computing power, and advanced composite systems all overlap with eVTOL aircraft manufacturing. But now Morgan Stanley's Adam Jonas has come up with another ingenious 2-by-2 chart so much en vogue with international strategy consultants which highlights the core transformative forces at work. As Motional's CTO, Laura Major oversees the technology behind those vehicles. All investments involve risks, including the possible loss of principal. 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. We deliver active investment strategies across public and private markets and custom solutions to institutional and individual investors. Under Estrada, Nuro has also become the first company to test driverless vehicles in three states, a Nuro spokesperson told Insider. 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. For chemicals, lithium producers confront a chicken-and-egg problem where higher demand for electric vehicles cant be met without a far greater supply of battery-grade lithium, while the supply won't be added until EVs show greater end-market demand. Hear their stories and learn about how they are redefining the terms of success. Though some have criticized Tesla for releasing new Autopilot capabilities in an unfinished form and for declining to develop a more robust system to make sure drivers pay attention to the road, Autopilot has broken ground for driver-assistance systems and received high marks for its capabilities. "Laura and the Motional team are behind some of the self-driving industry's largest leaps forward," a Motional spokesperson told Insider. Meet one of our Financial Advisors and see how we can help you. Hear their stories and learn about how they are redefining the terms of success. 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. Ideas across disciplines uncover novel insights for sharper decision-making. Electric utilities would benefit from the shift away from the pump to plug-in charging, as electric vehicles gain more consumer traction. Morgan Stanley helps people, institutions and governments raise, manage and distribute the capital they need to achieve their goals. 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, Head of Global Auto and Shared Mobility Research. We rely on our technologists around the world to create leading-edge, secure platforms for all our businesses. We have global expertise in market analysis and in advisory and capital-raising services for corporations, institutions and governments. The report projects a total addressable market of $1.5 trillion for autonomous aircraft by 2040, creating opportunities for investors and benefiting a host of sectors along the way. portfolio liquidity) of events. Our culture of access and inclusion has built our legacy and shapes our future, helping to strengthen our business and bring value to clients. In the autonomous-vehicle industry, it can be difficult to identify the most important supporting players from the outside. Our firm's commitment to sustainability informs our operations, governance, risk management, diversity efforts, philanthropy and research. "Vehicle sharing can only take your vehicle utilization to about 50%-60% of its full potential, in our view," says Jonas. 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,. The risks of investing inemerging market countriesare greater than risks associated with investments in foreign developed countries. After all, 600 billion hours is a lot of time to spend in vehicles that you arent driving. Private car ownership is more aspirational in India, a country with growing Internet access and a large population of young people who are concerned about pollution and open to ride-sharing. It is difficult to predict the timing, duration, and potential adverse effects (e.g. At Morgan Stanley, we lead with exceptional ideas. We rely on our technologists around the world to create leading-edge, secure platforms for all our businesses. Market values can change daily due to economic and other events (e.g. An early member of Zoox, Ashu Rege leads the company's software team. Whether its hardware, software or age-old businesses, everything today is ripe for disruption. Proprietary views on big ideas with the potential for far-reaching consequences. 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. In other words, the skys the limit. At Morgan Stanley, we put our beliefs to work. That pace of growth is much higher than the estimated production of cars and light vehicles during the same period. /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 leadership is dedicated to conducting first-class business in a first-class way. The car you summon from your smartphone doesn't have a driver. Its more like a freight train that starts slow, builds momentum, and then pulls a lot of weight for the long haul. The 100-year-old auto industry, engineered for success based on millions of units sold, is facing unprecedented technological disruption from shared, autonomous and electric mobility, and has begun to rethink and remodel its business strategies around "trillions of miles traveled.". In general,equities securitiesvalues also fluctuate in response to activities specific to a company. Whether its hardware, software or age-old businesses, everything today is ripe for disruption. 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. 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. Current numbers vary widely from country to country, depending on the maturity of the market. Morgan Stanley analyst Katy Huberty explained the profit potential for Apple in a research note she issued in January. 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. In-depth insights on emerging and global markets for spotting hot growth stories. Finally, mass adoption of BEVs will also require a more robust charging infrastructure which could present opportunities for utilities and capital goods. However, it could also open up a whole new world of business across multiple sectors. Autonomous vehicles could change not only the way we move from point A to point B, but also how we live our lives. The U.S. car parc consumes around 1,200 terawatt hours of equivalent electrical energy each year. As a global financial services firm, Morgan Stanley is committed to technological innovation. Autonomous vehicles on the other hand remove the human bottleneck and the economics change substantially.". Any charts and graphs provided are for illustrative purposes only. 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. 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). Along the way, plenty of other sectors will be figuring out how they can come along for the ride. Shipping goods would likely be the first use case because of the lower degree of technological barriers (weight, size, etc.) That's around a billion tons of TNTthe energy equivalent of some 60 thousand WWII-era atomic bombs. Reducing the cost, decreasing noise and creating aircraft that essentially levitatenot takeoff via a runawayare also key considerations. Privacy & Cookies Illiquid securitiesmay be more difficult to sell and value than public traded securities (liquidity risk). Plus, more Ideas. Underpinning all that we do are five core values. "In True Redundancy, Hayon has designed for future AVs a system that ensures uncompromised safety and unmatched scalability," the spokesperson said. Ideas across disciplines uncover novel insights for sharper decision-making. We believe our greatest asset is our people. To identify the unheralded stars, we surveyed analysts, venture capitalists, industry experts, and autonomous-vehicle companies to nominate essential employees who aren't CEOs. Multicultural and women entrepreneurs are the cutting-edge leaders of businesses that power markets. Privately placed and restricted securitiesmay be subject to resale restrictions as well as a lack of publicly available information, which will increase their illiquidity and could adversely affect the ability to value and sell them (liquidity risk). Across all our businesses, we offer keen insight on today's most critical issues. Prior to making any investment decision, investors should carefully review the strategys relevant offering document. Most of the battery cell costs are driven by the price of materials and composition, Hendrikse says. See how we can help you work toward your goalseven as they evolve over years or generations. We deliver active investment strategies across public and private markets and custom solutions to institutional and individual investors. Let's start with Morgan Stanley. 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. Morgan Stanley has developed a framework to assess the appeal of shared, autonomous and electric vehicles in particular countries and regions. Global institutions, leading hedge funds and industry innovators turn to Morgan Stanley for sales, trading and market-making services. Since our founding in 1935, Morgan Stanley has consistently delivered first-class business in a first-class way. Autonomous vehicles use a suite of sensors, actuators and a central computer to perceive the environment and automate the driving process, thereby enabling the vehicles to drive themselves without human involvement. Any charts and graphs provided are for illustrative purposes only. Before joining Morgan Stanley, Savage worked on mergers and acquisitions in the media industry at Goldman Sachs. Since our founding in 1935, Morgan Stanley has consistently delivered first-class business in a first-class way. 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. While it's true that electric cars have hardly taken the market by storm, Jonas notes that, today, the same low utilization of private cars that so invites market disruption also torpedoes any cost efficiencies an electric car could deliver. Morgan Stanley leadership is dedicated to conducting first-class business in a first-class way. Investments inforeign marketsentail special risks such as currency, political, economic, market and liquidity risks. One of the Morgan Stanley's report clearly estimates that replacing traditional automobiles with autonomous cars in the United States alone could contribute . "Your car is arguably one of the most underutilized, polluting, time-consuming and dangerous machines on Earth," says Adam Jonas, head of global auto research for Morgan Stanley. Morgan Stanley helps people, institutions and governments raise, manage and distribute the capital they need to achieve their goals. Get the latest insights, analyses and market trends in our newsletter, podcasts and videos. Morgan Stanley's U.S. Research teams 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. We have global expertise in market analysis and in advisory and capital-raising services for corporations, institutions and governments. Whether its hardware, software or age-old businesses, everything today is ripe for disruption. 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. "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. Illiquid securitiesmay be more difficult to sell and value than public traded securities (liquidity risk). 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 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 has valued Tesla's autonomous vehicle ride-sharing business, which does not yet exist, at $17.7 billion, about one-tenth of Waymo's value, yet still above GM Cruise, the . Hear their stories and learn about how they are redefining the terms of success. Our firm's commitment to sustainability informs our operations, governance, risk management, diversity efforts, philanthropy and research. The coming of autonomous vehicles could change our conception of personal transportation. 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. 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. Improvements in batteries, artificial intelligence and satellite communications are also expanding the possibilities. A career at Morgan Stanley means belonging to an ideas-driven culture that embraces new perspectives to solve complex problems. At Morgan Stanley, we focus the expertise of the entire firmour advice, data, strategies and insightson creating solutions for our clients, large and small. This is a major intellectual feat . natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. Would you like to help us improve our coverage of topics that might interest you? 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, one billion battery electric vehicles (BEVs). Prior to making any investment decision, investors should carefully review the strategys relevant offering document. Before joining Aurora, in 2019, she was Lyft's director of business development and strategy, where she focused on automated-driving technology. Autonomous vehicles use a suite of sensors, actuators and a central computer to "perceive" the environment and automate the driving process, thereby enabling the vehicles to drive themselves without human involvement. All rights reserved. At Morgan Stanley, we put our beliefs to work. 4 min read. "They've made some really good progress," said Abuelsamid, who speaks with Argo regularly. But in a future of shared, autonomous vehicles with much higher utilization, electric cars make far more economic sense than their gasoline counterparts. Morgan Stanley is differentiated by the caliber of our diverse team. A transition to electric vehicles could be equal to one-third of total U.S.
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