Morgan Stanley sees opportunity for Ford to narrow gap with GM with capital plan

Morgan Stanley analyst Adam Jonas notes that General Motors (GM) shares are up about 34% over the past 6 months versus Ford (F) shares being down about 2%, pointing out that GM or Ford outperformed the other by greater than 40% over a 6 month time period just twice prior to 2024. The firm, which remains Overweight both Ford and GM shares and notes that Ford remains a Top Pick, sees significant further opportunity for both companies to dial back on EV spending in favor of capital discipline and believes that Ford in particular has considerable potential for improvement in incremental capital employed.