Tesla Inc. TSLA lost its “Top Pick” rating with Morgan Stanley, apparently due to perceived riskiness, as the firm switched its allegiance to a more defensive name in the space.

The EV Analyst: Adam Jonas named Ferrari NV RACE as his new “Top Pick,” among U.S. automakers, replacing Tesla. The analyst maintained an Overweight rating on Ferrari shares and raised his price target from $280 to $310.

See Also: Best Electric Vehicle Stocks

The EV Thesis: Ferrari is the most defensive name in Morgan Stanley’s coverage universe that avoids much of the electric vehicle hype and EV risk, analyst Jonas said in a note. The analyst sees the risk/reward as attractive for the stock.

Jonas said he has become increasingly cautious on the auto space following the year-to-date rebound in stocks, continuing signs of unaffordability and auto credit pressure. Ferrari, he said, is the “best positioned company” in his coverage in a “highly uncertain macroeconomic and geopolitical tape.”

Ferrari has strong fundamentals and levers to pull for both growth or downside protection, irrespective of the macro outcomes, the analyst said.

Morgan Stanley’s preference for Ferrari is due to the long-term opportunities tied to EV and new models, and its predictable business model and near “unmatched brand and market moat,” Jonas said.

“We believe investors over-estimate the risk of EVs to Ferrari and misprice the inherent opportunity in EVs coupled with continuing the ICE business on an exclusive basis with price points for ICE approaching $1mn/unit,” the analyst said.

Price Action: Ferrari closed Monday’s session down 0.40%, to $270.36, according to Benzinga Pro data.

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