At a time of rising oil prices, Morgan Stanley has listed General Motors as the top pick in the automotive sector.

Morgan Stanley analyst Andrew Percoco pointed out in a recent report: "The escalation of conflicts in the Middle East is exacerbating the risks to the global automotive supply chain. The tense situation around the Strait of Hormuz has intensified energy price fluctuations and raised concerns about disruptions in the transportation of upstream raw materials such as oil and aluminum." The institution stated that, against the backdrop of high oil prices, it is continuously monitoring the pressures faced by automakers and suppliers, as well as the chain reactions that may arise in pricing and demand. Morgan Stanley analysis stated that assuming an average vehicle fuel efficiency of 27 miles per gallon and an annual mileage of 12,000 miles, for every $1 increase in gasoline prices, the annual fuel costs for gasoline vehicles would increase by $450. Morgan Stanley predicts that if the conflict continues, market volatility will intensify. If that is the case, the institution has already listed General Motors as its top pick in the sector and maintained a "buy" rating. Morgan Stanley stated that General Motors "has demonstrated outstanding management capabilities and performance in dealing with supply chain disruptions and volatile operating environments. General Motors remains a core recommendation in the automotive sector, especially following a recent stock price correction, with the current stock price only corresponds to 5.5 times our 2026 earnings per share expectations, and is expected to rise by 30% to reach our target price of $100."