Ford Motor Co. F, -3.91% stock was downgraded to the equivalent of hold at Morgan Stanley, with analyst Adam Jonas saying that even though the car maker has a “sense of urgency” about electric cars its strategy “is not fully clear to us.” Ford is also still saddled with its Europe business and is “sub scale” in the Chinese market compared with other makers, the analyst said in a note Wednesday.
Morgan Stanley kept its rating on General Motors Co. GM, -2.15% at the equivalent of buy, and upped its price target on the stock to $53 to $44, praising the auto maker’s “all in” move into EVs. Overall investors are seeing EVs as an opportunity to legacy auto makers rather than a threat, Jonas said. Shares of Ford have lost nearly 2% this year, while shares of GM have gained around 25%. That compares with gains around 12% for the S&P 500 index. SPX, -0.15%