Investor interest in traditional automakers as a less-expensive alternative to electric vehicle (EV) stocks might be misguided, warns Morgan Stanley's Adam Jonas.

According to a CNBC report, auto giants like Ford Motor Co. (F  ) and General Motors Co. (GM  ) have not lived up to expectations in the much-anticipated EV market.

Jonas stated in a Tuesday note, "What investors seem to be waking up to today is the idea that the tens of billions of dollars invested in EVs may be value destructive rather than value accretive."

Over the past month, both Ford and GM have seen significant share price declines, with Ford losing 21% and GM dropping about 15%.

Despite reaching tentative agreements to end strikes that had shut down factories for about six weeks, the new contracts constitute additional cost burdens. Coupled with rising interest rates threatening demand and transaction prices, investors are remaining cautious.

"At the crux of the problem is a capital-intensive sector investing in unproven EV strategies amid a world of rising costs, lower prices, rising rates and slower demand," Jonas penned.

He posed a challenging question to investors: "Change the narrative or change the portfolio?"

As of Monday's close, shares of Ford and GM were down more than 15% each for the year.