Snake Robot Researchers Are Coming To Detroit! Auto Analysts React

Earlier this month, Uber announced a partnership with the Carnegie Mellon Robotics Institute to create new autonomous car technology.

Morgan Stanley makes its position clear this morning: This will be revolutionary.

Morgan Stanley points to the CMRI’s research interests (snake robotics and robot swarms) as evidence as to how grandiose the thought is.

Specifically, Morgan Stanley calls this partnership “one of the many forthcoming ‘moments’ we expect will transform the automobile industry and personal mobility for generations to come.” And the good thing is that it’s not too early to get in on the investments that will benefit.

This new change will be akin to when Henry Ford transformed mass production at the dawn of the 20th Century, the analysts predict. Though Morgan Stanley adds, this transformation will not be bad for all automakers.

A change in the way the market values auto companies, they explain, from revenue per unit to revenue per mile, underscores the firm's ratings on a number of stocks.

The Bottom Line

Old-school automakers and auto companies could lose out.

Here is Morgan Stanley’s list of how to take advantage of this trend based on the analysts’ ratings:

Overweight

·      Delphi Automotive PLC DLPH

·      Mobileye NV MBLY

·      Tesla Motors Inc TSLA

Underweight

·      Hertz Global Holdings, Inc. HTZ

·      Avis Budget Group Inc. CAR

·      Ford Motor Company F

·      General Motors Company GM

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