Barclays starts autos and mobility sector, says Tesla stands out

Barclays analyst Dan Levy initiated coverage of the U.S. autos and mobility sector with a Neutral view. The analyst has a "mixed cycle view," saying recession pressures are offset by a positive trajectory for vehicle production and potential for pricing and inventory to settle at a "healthy and profitable new normal." Megatrends are positive for the industry longer term, but "not without challenges along the way," the analyst tells investors in a research note. Barclays started six stocks with Overweight ratings: Adient (ADNT), Aptiv (APTV), BorgWarner (BWA), Mobileye (MBLY), Rivian Automotive (RIVN) and Tesla (TSLA). The firm expects electric vehicle penetration to reach 48% by 2030. Tesla stands out with near-term financial strength and its lead in electric vehicle and software, Barclays contends. The firm views Mobileye as the best pure-play on drive assistance systems. It also believes Rivian is positioned to take "solid share" in the North American EV market. The analyst put Underweight ratings on two stocks: Fisker (FSR) and Visteon (VC). Barclays says expectations are too elevated Visteon. The firm rounded out its coverage with Equal Weight ratings on nine stocks: American Axle (AXL), Autoliv (ALV), Dana (DAN), Ford (F), General Motors (GM), Lear (LEA), Lion Electric (LEV), Magna (MGA) and Polestar (PSNY). Ford and GM face recession pressures and margin compression from the electric vehicle ramp, contends the analyst, who prefers GM over Ford.