Morgan Stanley (NYSE: MS) analyst Adam Jones, a longtime Tesla Inc. (NASDAQ: TSLA) bull analyst, has now shifted his position for the electric vehicle manufacturer due to an uncontrollable and unlikely threat: Amazon.com Inc. (NASDAQ: AMZN), according to CNBC.
“We're in no position to say whether Amazon would be a partner or potential competitor to Tesla in the area of transport, trucking, and logistics, but we point out the scale that large e-commerce players can bring." said Jones.
Jones reiterated his equal weight rating for Tesla, saying that Amazon’s entry into the transportation delivery services can directly compete against Tesla and its electric semi trucks, he wrote in a note to clients. Amazon has already posed as a threat to its current shipping partners FedEx Corporation (NYSE: FDX) and United Parcel Service Inc. (NYSE: UPS).
Along with Amazon, Jones sees Alphabet’s autonomous vehicle segment Waymo as also a threat to the company, saying its technology could threaten Tesla.
"Where we have substantially higher conviction on the Tesla story is our longer term thesis that the company will face greater levels of competition than the market anticipates in the domains of electric vehicles, autonomous vehicles, and shared mobility." wrote Jones in a note to clients.
Despite rising concerns against potential competitors, Jones still believes that Tesla will overcome its current problems within its factories and begin to ramp up production for the Model 3, as he still forecasts a long term growth for the company.
"To summarize, for the past seven years, Tesla has nearly monopolized Auto 2.0 amongst the publicly traded OEMS. In our opinion, the next seven years may be a far more volatile and crowded narrative," concluded Jones.