Investors Rethink Strategy As Ford And GM Fail To Deliver On EV Boom Amid UAW Strikes: 'Change The Narrative Or Change The PortFolio?'
Portfolio Pulse from Benzinga Neuro
Morgan Stanley's Adam Jonas warns that investor interest in traditional automakers like Ford Motor Co. and General Motors Co. as a less-expensive alternative to electric vehicle (EV) stocks might be misguided. Both companies have not lived up to expectations in the EV market, with their shares declining significantly over the past month. Despite reaching agreements to end strikes, new contracts constitute additional cost burdens, and rising interest rates threaten demand and transaction prices.
November 01, 2023 | 9:21 am
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NEGATIVE IMPACT
Ford has not lived up to expectations in the EV market, with its share price declining by 21% over the past month. New contracts after ending strikes constitute additional cost burdens.
Ford's underperformance in the EV market and the additional cost burdens from new contracts after ending strikes are likely to negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
GM has not met expectations in the EV market, with its share price dropping about 15% over the past month. New contracts after ending strikes constitute additional cost burdens.
GM's underperformance in the EV market and the additional cost burdens from new contracts after ending strikes are likely to negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100