Investor opinions are splitting among Detroit’s big automakers. On Monday, Wall Street became more optimistic about Ford Motor and General Motors, but lowered its outlook for Stellantis, which owns Chrysler.
Jefferies upgraded both Ford and General Motors over the weekend, increasing its price targets for each. On Monday morning, Ford’s stock rose 2.4% and GM’s climbed 3.7%, both beating the S&P 500 and Dow Jones Industrial Average.
Jefferies believes Ford and GM are set up to earn steady profits in what it calls a North American automotive oligopoly, where a few big companies dominate. While the U.S. auto market still has tight margins and lots of competition, high entry barriers and tariffs help protect it compared to other major car markets.
Ford will report its earnings later this week, and Jefferies thinks the company might raise its financial forecast. Ford expects to make about $9.5 billion in operating profit in 2026, up from $6.8 billion in 2025.
European and Chinese automakers are facing tougher times as competition keeps cutting into profits. On Monday, Piper Sandler lowered its outlook and price target for Stellantis. The company is under pressure from Chinese rivals, rising labor costs, and new AI-powered robotaxis.
Stellantis, now headquartered in Europe, is trying to turn things around under its new CEO Antonio Filosa, who replaced Carlos Tavares in 2025. The company made about $25 billion in operating profit in 2023, its best year recently, but is expected to earn less than $4 billion in 2026 as it cuts U.S. dealer inventories and updates its products. Stellantis shares fell 0.5% after the market opened Monday.
Wall Street’s views show this split. Fewer than a third of analysts are positive on Stellantis, much lower than the 55% to 60% bullish average for S&P 500 companies. Ford’s analysts are also divided, with only about 30% bullish. GM is the favorite, with nearly 80% of analysts having a positive outlook.
