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Why GM and Amazon can invest in & # 39; the next Tesla & # 39;



RJ Scaringe, founder and CEO of Rivian Automotive, speaks after presenting the electric sport utility vehicle (SUV) R1S.

Bloomberg | Bloomberg | false images

RJ Scaringe, founder and CEO of Rivian Automotive, speaks after presenting the electric sport utility vehicle (SUV) R1S.

The Amazon and GM agreement would value Rivian between $ 1 trillion and $ 2 trillion, according to Reuters on Tuesday.

Morgan Stanley believes that Amazon's participation represents the e-commerce giant, seizing the opportunity to use its own technology "to shape electric delivery vehicles to support their own logistics efforts," the firm said.

"Amazon has spent the last few years building and expanding its logistics network and recently invested in the autonomous driving company Aurora," said Jonas.

Regarding GM's participation, Morgan Stanley pointed to comments from GM CEO Mary Barra about electric trucks. Barra said GM believes "in the future with all EVs," while GMC vice president Duncan Aldred said that an electric van is "certainly" an opportunity the company is considering.

In its entirety, Morgan Stanley is very optimistic about the future of electric trucks.

"EV drive trains have not yet been applied to the most profitable segments where established car manufacturers in the US generate profits and cash flow," said Jonas. "We estimate that the full-size pickup truck segment represents more than 100% of the global automotive profits for GM and Ford and most of [Fiat Chrysler]The global benefit. "


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