BI Graphics Jeff Bezos vs Elon Musk

Morgan Stanley auto analyst Adam Jonas told Business Insider that major tech companies like Alphabet, Apple, and Amazon will have an advantage over Tesla when or if they decide to operate self-driving taxi services.
Each can use profits to offer new services at lower prices than their competitors to gain market share and drive out rivals.
Tesla, on the other hand, has produced widening losses in the past two years and has over $3 billion in debt due through the end of 2021.
If Tesla wants to run a successful autonomous ride-hailing service, the service will have to be profitable at some point, Jonas said.

In the coming years, Tesla plans to launch an autonomous mobility service, called the Tesla Network, that will combine ride-hailing and car-sharing.

While CEO Elon Musk has touted the Tesla Network as an opportunity for Tesla owners to make money from their vehicles when they aren’t using them, Morgan Stanley auto analyst Adam Jonas told Business Insider that peer-to-peer car sharing will comprise a small percentage of the network. Instead, Jonas said he thinks Tesla will start an autonomous ride-hailing service with a fleet of company-owned vehicles.

Big tech companies can offer new services at a loss

In a 2017 study, Intel and Strategy Analytics projected that the global market for autonomous driving technology will be worth $7 trillion in 2050. That’s why auto and tech companies are spending billions to develop self-driving systems.

Jonas said major tech companies like Alphabet (which owns the autonomous driving company Waymo), Apple (which is developing self-driving technology), and Amazon (which has formed a team to explore possible uses of self-driving tech) will have a big advantage over Tesla when or if they launch self-driving taxi services because they could run such …read more

Source:: Business Insider


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