Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Auto Industry Analysis

UpdatedDec 31, 2025
DataAggregated Company Financials
Companies44
  • 7D-5.6%
  • 3M4.2%
  • 1Y14.0%
  • YTD20.7%

Over the last 7 days, the Auto industry has dropped 5.6%, driven by a pullback from Tesla of 6.4%. On the other hand NIO is actually up 12%. This takes the industry's 12 month performance to a gain of 14%. Looking forward, earnings are forecast to grow by 33% annually.

Industry Valuation and Performance

Has the U.S. Auto Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 31 Dec 2025US$1.7tUS$536.8bUS$5.2b19.5x333.1x3.2x
Fri, 28 Nov 2025US$1.6tUS$536.0bUS$5.1b21.7x316.7x3x
Sun, 26 Oct 2025US$1.7tUS$535.0bUS$4.8b19.5x347.7x3.1x
Tue, 23 Sep 2025US$1.6tUS$527.9bUS$5.7b18.7x283.8x3.1x
Thu, 21 Aug 2025US$1.3tUS$527.5bUS$5.7b17.8x218.1x2.4x
Sat, 19 Jul 2025US$1.2tUS$527.7bUS$8.6b15.1x142.1x2.3x
Mon, 16 Jun 2025US$1.2tUS$527.7bUS$8.6b8.3x141.9x2.3x
Wed, 14 May 2025US$1.2tUS$525.9bUS$8.4b15.2x143.2x2.3x
Fri, 11 Apr 2025US$1.0tUS$528.7bUS$9.4b18.1x109.7x2x
Sun, 09 Mar 2025US$1.1tUS$535.3bUS$11.5b18.2x95.9x2.1x
Tue, 04 Feb 2025US$1.5tUS$532.4bUS$8.3b17.4x185.4x2.9x
Thu, 02 Jan 2025US$1.5tUS$527.0bUS$17.2b17.2x90.2x2.9x
Sat, 30 Nov 2024US$1.4tUS$527.9bUS$17.2b20.6x79.7x2.6x
Mon, 28 Oct 2024US$1.1tUS$525.6bUS$17.2b20.1x65.8x2.2x
Wed, 25 Sep 2024US$1.1tUS$519.8bUS$17.0b15.1x62.4x2x
Fri, 23 Aug 2024US$968.4bUS$517.8bUS$17.0b15.1x56.8x1.9x
Sun, 21 Jul 2024US$1.0tUS$509.5bUS$17.4b19.1x59x2x
Tue, 18 Jun 2024US$807.9bUS$509.6bUS$17.4b14.2x46.4x1.6x
Thu, 16 May 2024US$823.6bUS$508.7bUS$17.2b16.4x48x1.6x
Sat, 13 Apr 2024US$815.3bUS$505.5bUS$18.3b18.4x44.4x1.6x
Mon, 11 Mar 2024US$821.9bUS$504.9bUS$18.1b15.9x45.4x1.6x
Wed, 07 Feb 2024US$841.4bUS$499.0bUS$18.1b15.8x46.4x1.7x
Fri, 05 Jan 2024US$1.0tUS$498.4bUS$13.8b15.6x74x2x
Sun, 03 Dec 2023US$1.0tUS$498.3bUS$13.9b12.1x73.2x2x
Tue, 31 Oct 2023US$861.3bUS$492.8bUS$13.1b10.1x66x1.7x
Thu, 28 Sep 2023US$1.0tUS$484.7bUS$12.8b12.7x80.3x2.1x
Sat, 26 Aug 2023US$1.0tUS$486.3bUS$13.5b10.5x76.4x2.1x
Mon, 24 Jul 2023US$1.1tUS$469.5bUS$11.4b10.4x97.9x2.4x
Wed, 21 Jun 2023US$1.1tUS$462.0bUS$11.1b8.9x102.9x2.5x
Fri, 19 May 2023US$798.7bUS$464.4bUS$11.5b5.9x69.8x1.7x
Sun, 16 Apr 2023US$827.8bUS$446.9bUS$7.1b6.5x117.2x1.9x
Tue, 14 Mar 2023US$785.4bUS$447.7bUS$7.2b7.6x109.3x1.8x
Thu, 09 Feb 2023US$922.3bUS$448.7bUS$6.4b9.7x143.4x2.1x
Sat, 07 Jan 2023US$603.5bUS$425.7bUS$16.4b7.4x36.9x1.4x
Price to Earnings Ratio

36.9x


Total Market Cap: US$603.5bTotal Earnings: US$16.4bTotal Revenue: US$425.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Auto Industry Price to Earnings3Y Average 113.5x20242025
Current Industry PE
  • Investors are optimistic on the American Auto industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 333x which is higher than its 3-year average PE of 113x.
  • The 3-year average PS ratio of 2.2x is lower than the industry's current PS ratio of 3.2x.
Past Earnings Growth
  • The earnings for companies in the Auto industry have declined 32% per year over the last three years.
  • Meanwhile revenues for these companies have grown 8.0% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the U.S. Consumer Discretionary industry?

US Market-0.48%
Consumer Discretionary-1.49%
Auto-5.62%
Motorcycle Manufacturers0.22%
Automobile Manufacturers-5.63%
Industry PE
  • Investors are most optimistic about the Automobile Manufacturers industry which is trading above its 3-year average PE ratio of 116x.
    • Analysts are expecting annual earnings growth of 33.1%, which is higher than its past year's earnings decline of 54.4% per year.
  • Investors are most pessimistic about the Motorcycle Manufacturers industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 11.6x.
Forecasted Growth
  • Analysts are most optimistic on the Automobile Manufacturers industry, expecting annual earnings growth of 33% over the next 5 years.
  • This is better than its past earnings decline of 54% per year.
  • In contrast, the Motorcycle Manufacturers industry is expected to see its earnings decline by 4.6% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
NIO NIOUS$5.5012.5%
+US$1.7b		26.1%PS1.5x
XPEV XPengUS$21.288.0%
+US$1.5b		80.0%PS2x
LI Li AutoUS$17.272.9%
+US$494.6m		-28.0%PE26.3x
PSNY Polestar Automotive Holding UKUS$19.4913.4%
+US$177.9m		-38.1%PS0.6x
LOT Lotus TechnologyUS$1.449.1%
+US$81.2m		-60.1%PS1.6x

Latest News

XPEV
US$21.28
XPeng
7D
8.0%
1Y
80.0%

XPEV: AI Robotaxis Will Drive Future Mobility Upside Narrative

The analyst price target for XPeng has been modestly increased by approximately $0.19 as analysts factor in stronger long term revenue growth and profit margin prospects, supported by rising volume forecasts, AI enabled model launches, and incremental opportunities in robotaxis and robotics. Analyst Commentary Bullish analysts have turned increasingly constructive on XPeng, pointing to expanding total addressable markets, stronger than expected AI capabilities, and improving long term delivery trajectories as key drivers of upside to the equity story.
LI
US$17.27
Li Auto
7D
2.9%
1Y
-28.0%

LI: Future Performance Will Balance Domestic EV Pressures And Overseas Expansion Uncertainty

Analysts have modestly reduced their price target on Li Auto to $17, down from about $19.50. They cite increased competitive and policy risks in China as well as uncertainty around the company’s global expansion strategy.
GM
US$82.33
General Motors
7D
-0.5%
1Y
54.6%

GM: Shares Will Track Fair Value Amid Tariff Relief And EV Retrenchment

Analysts have increased their average price target for General Motors by approximately $3 to about $79 per share, reflecting stronger than expected Q3 results, improved profitability, and growing confidence in GM's positioning into 2026, despite lingering tariff and volume uncertainties. Analyst Commentary Bullish analysts are largely focused on GM's stronger than expected Q3 performance and the improved visibility into earnings through 2026, leading to a series of upward price target revisions that cluster in the mid 70s to low 80s, with one target now as high as $100.
WGO
US$41.15
Winnebago Industries
7D
-3.8%
1Y
-13.9%
PSNY
US$19.49
Polestar Automotive Holding UK
7D
13.4%
1Y
-38.1%

PSNY: Finnish Expansion Will Support Future Upside Despite Nasdaq Compliance Risk

Analysts have sharply reduced their 12 month price target for Polestar Automotive Holding UK to approximately $8 from about $250. This reflects a reassessment of the company’s long term earnings multiple, despite largely unchanged assumptions for growth, margins, and discount rate.
LCID
US$10.90
Lucid Group
7D
-7.7%
1Y
-63.9%

LCID: Robotaxi Expansion Will Drive Long-Term Upside Despite Capital Needs

Analysts have cut their average price target for Lucid Group by roughly half to about $29 per share, as they balance confidence in the company’s EV technology and product pipeline with expectations for slower growth, thinner long term profitability, and the need for additional capital. Analyst Commentary Bullish analysts continue to highlight the strength of Lucid's technology and product roadmap, even as they recalibrate expectations for profitability and capital needs.
NIO
US$5.50
NIO
7D
12.5%
1Y
26.1%

NIO: Chip Licensing And Delivery Ramp Will Support Future Share Upside

Analysts have trimmed their price target on NIO by roughly $1.70 per share, reflecting weaker near term delivery guidance, softer 2026 demand expectations, and heightened competitive pressures, despite resilient revenue growth. Analyst Commentary Bullish analysts acknowledge that the reset in expectations around NIO's near term deliveries and 2026 demand has weighed on sentiment, but they continue to highlight several supportive factors for the longer term equity story.
RIVN
US$19.60
Rivian Automotive
7D
-7.2%
1Y
47.4%
THO
US$104.25
THOR Industries
7D
-1.8%
1Y
8.9%
F
US$13.23
Ford Motor
7D
-0.5%
1Y
33.6%
HOG
US$20.82
Harley-Davidson
7D
0.4%
1Y
-30.9%

HOG: New Leadership Will Drive Inventory Clearance And Future Margin Recovery

The analyst price target for Harley-Davidson has edged down by $0.10 as analysts factor in weaker retail demand, ongoing inventory clearance related margin pressure, and mixed views on the pace of recovery despite recent management actions to improve dealer health. Analyst Commentary Recent Street research reflects a divided view on Harley-Davidson's outlook, with some emphasizing operational progress and others highlighting structural headwinds that could weigh on valuation and earnings power.
VFS
US$3.32
VinFast Auto
7D
-4.6%
1Y
-17.6%

VFS: Electric Bus Expansion Will Support Stronger Long-Term Market Position

Analysts have modestly raised their price target on VinFast Auto, reflecting a slightly higher fair value estimate of approximately 6.36 dollars per share. This change is supported by a lower perceived discount rate and only minor adjustments to long term growth and profitability assumptions.
TSLA
US$454.24
Tesla
7D
-6.4%
1Y
12.5%

TSLA: AI And Autonomy Focus Will Deepen Risks From Weakening Core Demand

Analysts have modestly trimmed their Tesla price target to approximately $391 per share, reflecting slightly higher discount rates and marginally lower long term growth and margin assumptions, even as they continue to see meaningful upside from AI, autonomy and energy storage over time. Analyst Commentary Recent Street research on Tesla reflects a wide dispersion of views, with some firms leaning into the company’s AI and robotics optionality while others remain focused on execution risk in the core auto and capital intensity of the growth agenda.
LOT
US$1.44
Lotus Technology
7D
9.1%
1Y
-60.1%
EMPD
US$4.46
Empery Digital
7D
7.5%
1Y
-87.2%

Empery Digital: Bitcoin Futures Point To Lack Of Dip Buying

Dec 03
LVWR
US$4.61
LiveWire Group
7D
0.7%
1Y
-4.2%

LiveWire Group, Inc. (NYSE:LVWR) May Have Run Too Fast Too Soon With Recent 33% Price Plummet

Nov 20
LiveWire Group, Inc. (NYSE:LVWR) May Have Run Too Fast Too Soon With Recent 33% Price Plummet