- Morgan Stanley lowered its rating of General Motors from overweight to equal-weight on Tuesday.
- The bank highlighted concerns of "rising execution risk" for its electric vehicle sales goals.
- It lowered its 12-month price target on GM's stock from $75 to $55.
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General Motor stock dipped as much as 5.5% in Tuesday trading, hitting its lowest point since September following a downgrade of the auto maker's stock from Morgan Stanley.
Morgan Stanley analysts led by Adam Jonas said they have concerns about GM's ability to electrify its fleet, downgrading its recommendation from overweight to equal-weight.
"[This is] the most significant estimate reduction we have made for GM since the start of COVID," the analysts' note read.
The company's 2022 guidance was "well below" the bank's forecasts, and pointed to uncertainty surrounding its ability to become a leading electric vehicle producer.
"We see rising execution risk on an absolute and relative basis more than we previously believed."
Morgan Stanley's prior forecasts had assumed that GM would have more EVs for sale than it currently does. The bank lowered its 12-month price target on GM's stock from $75 to $55, which Jonas noted is "significant," and spurred by a "narrative change" compared to Morgan Stanley's previous forecast.
In early January, GM shares hit a 52-week high of $67.21. Shares on Tuesday were trading just below $50.
