Shares of GM rose nearly 3% on Monday following Morgan Stanley's bullish call on the stock.
Analyst Adam Jonas upgraded the automaker to overweight, and increased his price target to $37 from $29.
The call comes after the heavily-scrutinized industry has been under pressure due to concerns over "peak auto." Some investors worry that the rise of ride-sharing services coupled with declining auto sales means an end to the traditional car makers.
But Adam Jonas believes these fears are overblown. For one, he argues that the transition to fully autonomous vehicles is further down the road than people might think.
"With all the excitement around fully autonomous transport, we believe investors may be overlooking the steps and the time required to get there," he wrote in his note.
And Jonas believes GM will take advantage of this waiting period to "generate cash, return cash and nurture new businesses with potentially positive terminal values."
On the "Halftime Report" the desk debated the call and whether or not there's a smooth road ahead for the stock.