Rivian Automotive (NASDAQ: RIVN) stock was trading down by 4.8% as of 1:20 p.m. ET Wednesday after Morgan Stanley analyst Adam Jonas downgraded the stock one notch from overweight (i.e., buy) to equal weight (i.e., hold).

Jonas' note on Wednesday regarding Rivian was only one facet in his broader downgrade of the entire U.S. automotive industry: He also downgraded Ford (NYSE: F) to equal weight and reclassified General Motors (NYSE: GM) to underweight (i.e., sell). But Jonas has specific concerns about Rivian.

Broadly speaking, Jonas observed that inflation has driven new car prices higher, reducing people's ability to buy them, with the result that inventories are swelling as sales stagnate. Adding to the problems of U.S. automakers, many Chinese automakers are selling their electric vehicles at ever-greater losses due to a price war. Further, China is producing 9 million more cars a year than it can sell locally. Those excess cars are getting exported, cutting into potential sales for Ford, GM, and Rivian, among others.

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Source Fool.com