Ferrari, Rivian, Freyr and Tesla top Morgan Stanley's list of top auto stocks
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Morgan Stanley is out with a ranking of the top 33 stocks it covers in the automobile sector. The firm thinks 2022 will be a year of execution. "Technological re-invention meets obsolescence in a battle of capital and culture... changing the narrative within CSuites and boardrooms around the industry," previews analyst Adam Jonas and team on the year ahead for auto.

#1 Ferrari (NYSE:RACE) - "Our new 'Top Pick' (replacing GM). Can justify 100% of the companyâs market cap with the âfine-artâ ICE businessâ¦ leaving the EV business (currently in skunkworks) for free. This makes RACE our favorite EV stock for 2022."
#2 Rivian (NASDAQ:RIVN) - "A call option on Amazonâs need to address existential CO2emissions. A clean-sheet strategy with deterministic capital (raised ~$25bn) focused on adventure and commercial fleets. While 2022 will see ups and downs while in 'ramp mode' we think Rivian is 'The One' for your EV portfolio."
#3 Freyr (NYSE:FREY) - "Norway is 20 years ahead of the rest of the world on EV penetration and wants some skin in the game. Batteries are dirty.FREY leverages Norwayâs clean grid and 24M tech to make clean batteries. We like the geographic/ESG bet."
#4 Tesla (NASDAQ:TSLA) - "While Tesla is not our top EV pick, itâs arguably our most âimportantâ stock pick. Not owning Tesla means not owning the one company that could make all your other EV names obsolete. A big 4Q delivery beat is just the opening act. Gigapress and structural pack come to life in 2022."
#5 General Motors (NYSE:GM) - "GM has built 3 platforms (EV, AV, Connected) across a broad portfolio of businesses (Cruise, Ultium, OnStar, BrightDrop, Hydrotech, Corvetteâ¦). The potential value âunlockâ is tantalizing. The window wonât remain open for long."
Fisker (NYSE:FSR), Carvana (NYSE:CVNA), Polaris (NYSE:PII), CarMax (NYSE:KMX) and Aptiv (NYSE:APTV) round out the top ten. The five are all rated at Overweight by Morgan Stanley.
Much further down the list are Ford (NYSE:F) at #27 and Lucid Group (NASDAQ:LCID) at #32, while Lordstown Motors (NASDAQ:RIDE) is dead last at #33. All three of those stocks are rated at Underweight.
The biggest story in the auto sector today is the stunning rally for Ford (F
+9.5%) as the Detroit automaker keeps charging higher.