Ford and General Motors have experienced a hiccup in their shares.

The two automakers were reportedly "downgraded" by analysts from Morgan Stanley after mentioning the challenges brought by the market environment, falling prices and the automotive sector's competitive nature, Reuters reported Wednesday.

The outlet noted that automakers in the United States have been experiencing high inventories, declining costs and a weakening consumer demand. It highlighted how the analysts also said that in China, the competitive pressure is also weighing on the U.S. automakers.

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Ford was downgraded from "overweight" to "equal" amid the decline of its price target, which lessened from $16 to $12. The company's shares were down around 4% ($10.43) and have been on its biggest percentage decrease since August.

Meanwhile, General Motors' "equal weight" status fell "underweight," since its price target was cut from $47 to $42. The company's stock declined by 5.4%, translating to $45, indicating its biggest decline since September.

Morgan Stanley has also evaluated other automakers such as Rivian Automotive (5.7%) and Magna International ($4.7), which both downgraded from "overweight" to "equal weight."

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