Amazon is set to lead the way in taking electric vehicles "to the next level" because, as part of its carbon neutral initiative "Shipment Zero", it will integrate the technology in its huge fleet of vehicles, according to Morgan Stanley.
Adam Jonas, a Morgan Stanley analyst who is widely recognized on Wall Street as one of the first to predict the growth of Tesla and the impact of electric vehicles on the auto industry, commented: "Amazon's plans to have 50% of its trips carbon neutral by 2030 implies a major push in electric vans/delivery vehicles. We think investors should prepare for more moves by megafleets to solve for sustainability."
Jonas predicted that Amazon's adoption of electric cars will have a large influence over the logistics industry at large, stating that the strategy "may penetrate megafleet managers and logistics markets faster than the penetration of private/single-vehicle ownership models".
While it may lead the industry over the next few years, the retail Titan's megafleet will not be the only one propelling the technology, according to Jonas. He featured electric truck and SUV maker Rivian in a number of notes last week, naming the startup "the next serious competition for Tesla".
"In our view, the "front line" of sustainable propulsion systems will be fought in dense urban and suburban transport networks where large, well-resourced, and technologically savvy companies managing fleets of potentially many millions of vehicles may be held to strict standards of tailpipe emissions by local/metropolitan governments," Jonas concluded.