Long-lasting global auto semiconductor chip shortages could ease sooner than expected on the back of strong foundry shipments, consumer electronics slowdown and China re-opening, Morgan Stanley analyst Adam Jonas said on Tuesday.
What Happened
The analyst who tracks automakers like Tesla Inc and Rivian Automotive Inc said that the new and used car prices are expected to enter a new phase as the market gets flooded with new chips.
The analyst says the move could shift the balance to pricing towards suppliers over dealers.
“We see improved supply chain availability as an underappreciated trigger for the transfer of value from those who have enjoyed pricing power on the down-stream to those who have had to face rising input costs and lower production upstream,” Jonas wrote in a note.  “Like a rusty seesaw on a deserted playground… the balance will shift from dealers to suppliers.”…