A Morgan Stanley analyst expressed worry that Tesla's dominance in the fields of electric and autonomous vehicles may be coming to an end as companies like Amazon enter the market, according to CNBC.
Analyst Adam Jonas wrote a note to clients March 9 reiterating his equal weight rating for Tesla shares, noting that Amazon could negatively impact Tesla's transportation logistics market.
"Amazon has a vested interest in taking the marginal cost of transportation to its lowest possible level," Mr. Jonas wrote, according to CNBC. "We're in no position to say whether Amazon would be a partner or a 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, which could lead to surprisingly deflationary long-term trends in some of Tesla's core initiatives."
Tesla's shares have outperformed the market over the past year, but Mr. Jonas said the future is more unstable.
"To summarize, for the past seven years, Tesla has nearly monopolized Auto 2.0 amongst the publicly traded [original equipment manufacturers]. In our opinion, the next seven years may be a far more volatile and crowded narrative," Mr. Jonas wrote, according to CNBC.