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 …read more
Source:: Businessinsider – Finance