Top US auto stocks offer growth potential in 2025 despite industry challenges

From Nasdaq: 2024-12-26 09:07:00

In 2024, the U.S. auto industry faced challenges due to affordability issues, high interest rates, and elevated vehicle prices. Third-quarter new vehicle sales dropped by 2% year-over-year, prompting production forecasts to be adjusted downward to 15.5 million units. In 2025, affordability concerns persist amid inflation and slower interest rate declines, impacting the industry’s outlook.

S&P Global Mobility projects a modest 1.2% increase in U.S. auto sales volumes to reach 16.2 million units in 2025. Large-cap auto stocks like Tesla, General Motors, and CarMax offer stability and growth potential, making them attractive investments in a volatile market. These companies have improved earnings outlooks and are well-positioned for the future.

Tesla continues to thrive in 2025, with a forecast of 20%-30% growth in vehicle deliveries and advancements in its Energy Generation & Storage segment. The company’s strong balance sheet, focus on innovation, and expansion into autonomous vehicles position it as a transformative force in the clean energy and technology sectors.

General Motors remains a top-selling automaker in the U.S., with cost-cutting efforts, a strong liquidity profile, and advancements in its electrification journey. The company aims to make its EV business profitable by the end of the year, driving growth and profitability. GM’s 2025 earnings are projected to grow by 2.7%, with positive indicators for future performance.

CarMax, the leading used car retailer in the U.S., plans strategic expansions and acquisitions to enhance its operations and market expertise. The company’s focus on digital capabilities, data science, and AI enhancements drive growth in purchases and wholesale sales. CarMax’s fiscal 2025 and 2026 earnings are expected to grow, supported by its investor-friendly initiatives.



Read more at Nasdaq: Top 3 Large-Cap US Auto Stocks to Steer Your Portfolio in 2025