Auto1 Group

Frankfurt Stock Exchange-listed Europe's largest online used-car sales platform operating across continental Europe.

"Europe's largest online vehicle sales platform, Auto1 Group’s shares fell on the back of a combination of market concerns, all of which we believe are significantly overstated. Firstly, the market is concerned that accelerated autonomous vehicle (AV) adoption will harm used car demand in Europe. Second, Amazon Autos entered the UK with plans to expand into continental Europe. Finally, there are concerns about potential market-wide disruptions from rapidly rising levels of new and affordable Chinese vehicle imports into Europe. These concerns, in our view, underestimate Auto1's growth potential and strong economic moat. While Auto1 is the leading platform for used car sales in Europe, its retail market share is still minuscule at under 1% of used cars sold. The company has a multi-year growth runway irrespective of potential shifts in demand driven by AV adoption. Furthermore, Amazon is entering the market with an asset-light marketplace model. This strategy cannot address the operationally intensive nature of sourcing, transporting, refurbishing, storing, and delivering used cars at scale."