shares of ford motor co were hit hard monday by ubs analyst patrick hummel’s recommendation that investors sell as the auto industry is facing a worrisome uturn from undersupply to oversupply hummel also cut his ratings on several other global auto makers including general motors co gm  saying that as a recession concerns grow “demand destruction is no longer a vague risk” in addition to all of the data suggesting the economy is slowing hummel said growing us dealer inventories weak usedcar pricing usedcar dealer profit warnings and signs indicating deteriorating orders and shorter delivery times make him more cautious on the overall auto industry don’t miss carmax stock suffered biggest selloff since the year 2000 as inflation low consumer confidence lead to big profit miss “we think it will only take 36 months for the auto industry to end up in oversupply which will put an abrupt end to a 3year phase of unprecedented oem original equipment manufacturer pricing power and margins” hummel wrote in a note to clients as part of his negative industry outlook he cut his rating on ford f to sell from neutral and his stock price target to 10 from 13 with the new target implying about 11 downside from current levels ford’s stock sank 76 in morning trading it was trading up just 06 month to date after plunging 265 in september to suffer its worst monthly performance since it plummeted 306 during pandemicstricken march 2020 hummel noted that ford has already warned about having more vehicles in inventory than expected and above payments to suppliers running about 1 billion higher than projected so he sees little margin left for negative surprises in terms of fourthquarter deliveries and supply costs hummel cut his 2023 adjusted earningspershare estimate by 61 to 52 cents a share to reflect a 65 billion drop in price and sales mix the compares with the current 2023 factset eps consensus of 187 “this sounds very negative but ford gains 19 billion in price alone since the beginning of 2020” hummel wrote also read ford again raises price of f150 lightning electric pickup read more ford september sales fall as drop in trucks offsets near tripling in evs meanwhile gm’s stock dove 69 in morning trading toward a threemonth low and shares have shed 25 so far this month after tumbling 16 last month hummel downgraded gm to neutral from buy and dropped his price target by 32 to 38 from 56 the rating remains above ford’s because unlike its rival hummel noted that gm has had “no hiccups” in its thirdquarter production schedule and therefore a “solid” quarterly report is expected however the downgrade reflects the fact that gm is “not immune” to a downturn in the industry separately hummel also cut his stockprice target on tesla inc tsla to 350 from 367 saying that following a thirdquarter volume report that was below expectations it will be “more challenging” for the electricvehicle maker to meet its 2022 delivery growth target however hummel reiterated his buy rating on tesla as he believes the ev maker is best positioned to use pricing as the tool to fill its factories “overall the recession outlook should result in moderately lower margins for tesla than previously expected but we’re highly confident that by keeping the top line revenue momentum tesla will even widen the gap vs competitors in terms of profitability” hummel wrote ford’s stock has fallen 3 over the past three months while gm shares have lost 31 and tesla’s stock has dropped 118 in comparison the sp 500 index spx has declined 75 the past three months among other auto makers he also downgraded both renault sa rno rnlsy and volkswagen ag vow to neutral from buy he also downgraded auto parts makers continental ag con and faurecia se eo furcf to neutral from buy