General Motors downgraded at Deutsche amid pricing pressure, recession risks
Nic Antaya

Deutsche Bank dimmed its view of General Motors on Monday as myriad of macroeconomic risks confront the auto manufacturer. 
In a note advising caution on automakers broadly, the bank downgraded General Motors (NYSE:GM) from âBuyâ to âHoldâ as a lack of catalysts available to counteract the expected compression of valuations.
âWe are much more cautious about automakers, on rising concerns about the health of the consumer and recessionary fears in Europe and the US,â the note explained. âAny associated weakening in consumer demand for vehicles could materialize rapidly into vehicle pricing pressure, impacting OEM profitability.â
General Motors (GM) is expected to be among the hardest hit, with outsized pricing impacts, limited visibility on autonomous driving upside, and strides in EV manufacturing still progressing slowly. Ford was reiterated as a âHoldâ as well due to much of the same dynamic. Instead, Tesla (TSLA) was touted as the favored automaker heading into an expected slowdown.
âWe continue to favor [Tesla] (TSLA) for which 2H22 should see considerable acceleration, with the continued ramp up of 2 new factories, increased Shanghai capacity to record levels, strong pricing power, and initial production of its own battery cells which would enable SOP of Cybertruck next year,â the research concluded.
Read more on the Streetâs expectations for Tesla ahead of its earnings release on Wednesday.