3 Auto Stocks Wall Street Loves Right Now

Bank of America leads a growing list of Wall Street analysts who are bullish on U.S. auto stocks. That comes on the heels of a Washington, D.C. regulatory pivot, waning interest in electric vehicles, and a driving public that’s giving American automakers a second look, all of which are fueling a U.S. sector rebound in 2026. That’s despite the skyrocketing oil prices caused by the war with Iran, and the new tariffs that have continued to make things harder for car manufacturers. In fact, those woes are precisely what has set expectations so low that beating them may prove easy, rewarding investors willing to take a chance on auto stocks. Especially on these three car stocks that Wall Street loves. All told, the legacy auto sector “will outperform expectations this year as automakers adjust to a new regulatory environment that favors their higher margin accretive internal combustion engine vehicles,” BofA analyst Alexander Perry noted in a recent research note. Citing expiring emission mandates, Perry said he expects EV sales “to decline 20%+ in 2026 from the phase out of consumer incentives, while automakers’ cancellation of 40% of EV programs and extension of over 45% of ICE programs will pressure penetration over the next several years.” That mostly bullish sentiment comes at a time when the Trump administration has tilted the regulatory playing field in favor of traditional automakers. In early 2026, Team Trump began unwinding federal greenhouse-gas rules for autos, rescinding an EV-friendly fuel-economy provision, and challenging California’s zero-emission vehicle regime in court. If and, most likely when, these trends take hold, compliance burdens for automakers could dissipate, even if lawsuits and state-level conflicts keep some issues (like the California case) percolating along for a few years. What car makers are in acceleration mode this spring? Here are three auto stocks at the top of the playlist. General Motors For investors, BofA’s message is simple and direct: if Washington is no longer pushing the auto industry toward heavier EV volume, legacy U.S. automakers with strong truck and SUV franchises have more elbow room to protect margins. Right now, GM (NYSE:GM) looks like the clearest “traditional auto” beneficiary of relaxed regulatory standards. Currently trading at $73 per share, GM is a likely winner in the eyes of Wall Street pros. BofA, for example, has set a $105 price target of $105, representing a 42% upside for shareholders. Investors should note there’s been an uptick in insider sales, with company President Mark Reuss selling 480,724.00 shares for a total of $38,709,454.92 earlier this year. That said, there’s no firm evidence that the trend is anything but anecdotal, but it is an issue to keep an eye on. On the upside, GM’s financials look robust. The company has produced of late, with a 2.6% year-over-year increase in net sales, reaching $187.4 billion. That rise was primarily driven by strong demand for full-size pickups and SUVs, as well as by new electric-vehicle launches, according to Benzinga data. The company also saw a 7.5% increase in global vehicle sales, totaling 1.56 million units, alongside a 14% sequential rise in deferred revenue from OnStar and Super Cruise. “That reflects a growing technology-driven revenue base with significant contributions from software services,” Benzinga analysis noted. “Furthermore, GM’s domestic market share reached 17%, its highest since 2017, and the company reported an impressive 11.6% year-over-year growth in EBITDAR to $28.8 billion, indicating strong operational efficiency and cost management.” That’s good news for GM investors. If the auto market increasingly rewards Detroit for selling what Americans already buy most, like big pickups, SUVs, and crossovers, GM may be one of the biggest sector headliners in 2026. Ford Trading at $12 per share and down 10% year-to-date, at first glance, Ford (NYSE:F) doesn’t seem like the most stable stock in the auto sector. In the past week alone, Ford introduced its impressive Ford Explorer EV, complete with a ground-breaking lithium iron phosphate (LFP) battery and AI-powered cruise control that makes the vehicle the master of its own driving environment. Simultaneously, Ford tossed a bone to its traditionalist base, vowing that its stick shift lineup is here to stay. Blending the past and the present may raise a skeptical eyebrow or two on Wall Street, yet Ford has some momentum on its side. A case in point. Ford’s appeal is tied not just to F-Series and its broader truck lineup, but also to the strength of Ford Pro, its commercial vehicle operation. BofA recently noted Ford Pro is expected to produce $6.5 billion to $7.5 billion in 2026 EBIT, placing an exclamation mark on the company’s fleet and work-truck channel and how important it is to Ford’s bottom line. BofA’s Perry has set a $17 per-share price target on the stock, implying a 43% value upgrade. Investors who believe Ford can thread the needle between the legacy past and the electric vehicle future (the company still has a big $5 billion bet placed on its EV lineup) shouldn’t remain idle on Ford, especially since you can snap up shares at a solid discount. Tesla At first blush, Tesla (NASDAQ:TSLA) seems like an outlier on Perry’s list, mainly because its bull case is less about regulatory relief on gas vehicles and more about technology domination and market autonomy, especially down the line with TSLA’s valuation-driving robot taxi lineup. Tesla’s most recent results show why investors are still willing to shell out big bucks for that flexibility. The company reported $3.8 billion in GAAP net income for full-year 2025 and $0.8 billion in Q4, while emphasizing that 2025 was a critical year in its shift toward a broader AI and robotics-powered vehicle platform. “In particular, the company’s Energy Generation & Storage segment achieved remarkable success with record quarterly deployments of 14.2 GWh, resulting in a 25% year-over-year revenue increase to $3.84 billion, while full-year Energy revenue reached $12.8 billion, demonstrating high-30% growth and record gross profit,” Benzinga analysis noted. “This multifaceted revenue generation approach, alongside a solid trajectory in electric vehicle deliveries and innovative offerings, underpins a robust outlook for Tesla’s financial performance.” Perry’s TSLA analysis cited consumer support, technology acumen, and the robotaxi opportunity in his Buy call on the stock, with a $460 price target. “Tesla’s point-to-point software is the most advanced solution for consumer vehicles,” he added, and also noted the robotaxi market’s overall late-stage development status. TSLA shares are currently trading at $394 per share, and a consensus review of 20 auto analysts sees those shares rising to $473 per share, representing a 20% markup.