Morgan Stanley Sees Long-Term Tsunami Hitting Auto Industry

While the latest car models and factory output figures from Detroit have some investors fascinated, others claim the industry is poised for hard-to-imagine change.

Within a decade, current industry stalwarts will face direct competition from technology giants like Amazon.com, Inc. AMZN and Google Inc  GOOG GOOGL, as well as from ride-sharing companies like Uber, Lyft and Hailo, according to Morgan Stanley's Adam Jonas.

In a peculiar research note headlined "Death of an Auto Analyst," Jonas on Wednesday also forecast the end of private ownership of automobiles in favor of rentals, along with the advent cars without steering wheels -- or drivers.

"The days of focusing on monthly sales, pension accounting and union negotiations are "drawing to a close" for analysts, Jonas said.

Detroit's Ford Motor Company F and General Motors Company GM are doomed to diminished status "or worse" without a radical "re-evaluation or strategic realignment," according to Jonas.

The growth of "mega-fleets" that can manage tens of millions of vehicles will ease the phase-out of inefficient private ownership, according to Jonas, who notes that the average privately-owned auto is used for just 52 minutes per day.

"The implications carry deep industrial, political and social consequences," Jonas said.