UBS has downgraded shares of General Motors and Ford Motor citing possible weakening demand amid inflationary pressures.
The downgrades sent the stocks tumbling.
UBS downgraded Ford to “sell” from “neutral” and GM to “neutral” from “buy.”
Ford’s stock was down by roughly 8% during trading Monday morning, while GM shares were off by about 7%.
UBS continues to prefer GM over Ford due to its momentum with electric vehicles and less problems with production during the third quarter.
Ford is scheduled to report third-quarter results on Oct. 26.
