Morgan Stanley upgraded shares of General Motors to overweight from equal weight on Monday, predicting a 19 percent rally in the next 12 months to $37, saying increased competition from Tesla and other makers of self-driving cars is still a long ways away.
"With all the excitement around fully autonomous transport, we believe investors may be overlooking the steps and the time required to get there. Regarding the now well understood 'peak auto' thesis, we think investors may be underestimating how long this cycle can last and the related levels of mix and profitability," analyst Adam Jonas wrote.
Jonas is one of the most-followed Tesla analysts on Wall Street. Shares of the electric car maker are down more than 20 percent since he downgraded the stock to equal weight in late June.