Is Amazon a pal or foe of the auto business? Morgan Stanley is not certain
automotive tech companies. It led a $700 million funding in electrical car maker Rivian. The tech big additionally invested in a $530 million spherical of funding for Aurora, a start-up creating autonomous techniques that might rival these from GM’s self-driving automotive subsidiary, Cruise. The corporate is already hauling some cargo in self-driving vans from a start-up known as Embark.
Jonas beforehand mentioned Rivian’s “clear sheet” method may make it “the subsequent Tesla.”
The aggressive investments within the automotive start-ups adopted Amazon’s plan to have half of its journeys be carbon impartial by 2030, which Jonas mentioned requires “an aggressive adoption” of electrical autos. Jonas is widely known on Wall Avenue as one of many first to notice the importance of Tesla and electrical autos to the auto business.
Amazon additionally has reportedly employed GM’s outgoing government vice chairman of world manufacturing, Alicia Boler Davis.
GM’s Cruise reportedly is planning to rent 1,000 extra folks, largely engineers, over the subsequent 9 months. Nevertheless, Jonas stays uncertain that self-driving may very well be a actuality anytime quickly because of the technological and authorized hurdles.
“Whereas GM Cruise is extensively seen as a pacesetter in AVs, we don’t consider the human security driver might be faraway from any considerable quantity of fleet for a few years… if no more than a decade,” Jonas mentioned.
— With reporting from CNBC’s Michael Sheetz.
Correction: This story was revised to appropriate the trucking firm’s title to Embark.