As a follow-up to our piece on what the rental car sector forewarns about shared mobility, here are some fresh thoughts from auto equity analyst Adam Jonas at Morgan Stanley on Thursday.The TL;DR of the last post in case you missed it: if shared mobility is to cost effectively displace private vehicle ownership, it’s going to have to find someone to subsidise capital costs to the same degree rental car businesses always have. Unfortunately, the primary candidate — the second-hand private vehicle purchaser — is likely to be extinguished by the very same model, or at best priced out of the market.In order to compensate, the clearing cost of used car prices will have to collapse to levels which can no longer subsidise the market cost effectively. That makes it a Concorde 2.0 type situation,
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As a follow-up to