The US automobile sector is a major contributor to the economy, accounting for 3% of the GDP. The sector directly employs over 1.7 million individuals and indirectly supports over 8 million jobs. It is not just cars but also automobile stocks that are popular among investors. Due to this economic importance and global dominance, some of the best automobile stocks offer growth and stability.
S&P Global, Cox Automotive, and Edmunds anticipate that new car sales in 2025 will rise by 2.5% or less annually in order to attain the greatest results the sector has seen since 2019. This offers investors an opportunity to invest in the top automobile stocks to meet both the short-term and long-term financial objectives.
What are Automobile Sector Stocks?
Automobile sector stocks are the shares of companies working in the automotive business, including car manufacturing, as well as additional services. The key players in the auto industry stocks are major automakers such as Tesla, General Motors, and Honda that manufacture a variety of vehicles.
The automotive sector stock comprises supplementary businesses such as tyre manufacturers, technology providers, and vehicle financing institutions. Investors gain exposure to a cyclical business that performs well when the economy is expanding. However, the industry is also extremely vulnerable to variables like loan rates, gasoline prices, regulations, and more.
Top 10 Automobile Stocks in the US 2025
Here are the 10 best automobile stocks in the US you can invest in 2025:
| Company | Ticker Symbol | Share Price | Market Cap | Exchange | P/E Ratio | 5 Year Return |
| General Motors | GM | $52.68 | $50.64 billion | NYSE | 7.59 | 108.72% |
| Ford Motor Company | F | $11.77 | $46.80 billion | NYSE | 9.42 | 94.55% |
| Stellantis | STLA | $10.33 | $29.84 billion | NYSE | 4.76 | %3.82 |
| Toyota Motor Corporation | TM | $172.01 | $224.17 billion | NYSE | 6.88 | 36.09% |
| Honda Motor Co. | HMC | $29.68 | $40.54 billion | NYSE | 7.96 | 14.91% |
| Tesla | TSLA | $315.65 | $1.01 trillion | Nasdaq | 181.41 | 291.74% |
| Goodyear Tire & Rubber (GT) | GT | $11.08 | $3.16 billion | Nasdaq | 13.19 | 25.34% |
| CarMax | KMX | $71.57 | $10.74 billion | NYSE | 19.77 | -19.78% |
| Rivian Automotive | RIVN | $12.87 | $15.41 billion | Nasdaq | – | -87.94% |
| Ferrari | RACE | $491.56 | $87.59 billion | NYSE | 47.40 | 185.53% |
| Allison Transmission | ALSN | $97.71 | $8.23 billion | NYSE | 11.31 | 170.44% |
*the data is recorded on 03/07/2025
Overview of the Top Automobile Stocks in the US
Although pure EV startups are gaining momentum, traditional automakers are not going away anytime soon in the US automotive market. Electric Vehicles have a market share of only 8% in the US. Both automobile stocks, however, offer investors an opportunity to build and grow wealth. Here is an overview of the 5 best automobile stocks in the US:
1. General Motors (GM)
General Motors remains one of the best automobile stocks in the US because of its offensive nature. The company is also intensifying its electrification strategy under the vision of Zero Crashes, Zero Emissions, Zero Congestion.
The company is targeting to introduce more than 30 EVs in 2025 with the support of its Ultium battery technology. It also has a set of strong brands such as Chevrolet, GMC, Cadillac, and Buick, which places it well in the mass-market and premium segments.
2. Ford Motor Company (F)
The transformation strategy of Ford is based on EV growth and digital services. The Ford F-150 Lightning has also been doing well in the market. Meanwhile, its Mustang Mach-E is still competing head-to-head with Tesla Model Y. Ford is also investing in autonomous driving with the BlueCruise technology and Argo AI.
3. Stellantis (STLA)
In January 2021, Fiat Chrysler Automobiles (FCA) and the PSA Group (Peugeot Societe Anonyme) merged 50/50 to establish Stellantis. With 14 recognizable brands, including Jeep, Dodge, Chrysler, Ram, Fiat, Peugeot, Citroen, and Opel, it is currently the fourth-largest automaker in the world by volume.
The company is spending more than $35 billion worldwide on EV and software development. It also targets electrified Jeep SUVs and Ram trucks to respond to the changing consumer demand.
4. Toyota Motor Corporation (TM)
Although Toyota is still conservative in its EV deployment in comparison to competitors, it is a world leader in hybrid cars. Its future bZ (Beyond Zero) EVs are a strategic move towards battery electric vehicles, in a bid to get a share of the EV market, but not lose the hybrid market.
5. Honda Motor Co. (HMC)
Honda aims to launch 30 EVs globally by 2030. For the US market, it is partnering with General Motors to produce Ultium-based EVs. The company also has a good market share in conventional gasoline and hybrid markets.
Performance Comparison: Traditional vs. EV Automakers
As the US auto industry shifts towards electrification, investors closely monitor how traditional manufacturers stack up against pure EV players. Here’s a concise comparison to guide your analysis:
| Metric | Traditional Automakers | EV Automakers |
| Core Focus | ICE vehicles + hybrid transition | Fully electric platforms |
| Revenue Base | Diversified (ICE, hybrids, aftersales, finance) | Primarily vehicle sales, software/services scaling |
| EV Transition Strategy | Gradual (10–50% fleet electrification by 2030–35) | Native EV design; no legacy systems to transition |
| CapEx Spending | High, but split between legacy & future tech | Focused on EV R&D, battery tech, and software |
Things to Consider before Investing in Auto Stocks
When investing in automotive stocks, it is important to consider various variables and not only the reputation of the company or the trend of the stock price. These are some of the main factors to consider before investing in auto stocks:
1. Industry Cyclicality
The automobile industry is very cyclical. This is why the sales and profitability of the industry are affected by economic growth, consumer spending, and the availability of credit. In a recession, sales of vehicles are normally low as people postpone their big purchases.
2. Electric Vehicle Transition
The industry is undergoing a significant transformation with EV adoption. The old manufacturers who are investing in EVs (e.g., the $35 billion EV investment of GM) are preparing to grow in the future, whereas pure EV companies such as Tesla are defining the future of technology and profitability. Evaluate the way individual companies are responding to this change.
3. Technological Innovation
Autonomous driving, battery technology, and software integration have a high influence on competitiveness. The example of Tesla Full Self-Driving (FSD) and GM Super Cruise shows how the technology leadership of the company influences the attitude of investors and the future profitability.
4. Stability of Supply Chain
The recent shortages of semiconductors have demonstrated the weaknesses of auto supply chains that have slowed production and shipping around the world. Firms that have diversified their suppliers and developed strategic partnerships are in a better place to deal with such disruptions.
5. ESG, Regulatory Compliance
Operational costs and investor preference are affected by emission norms, clean energy targets, and ESG mandates. The automakers that are ahead of sustainability, EV penetration, and carbon neutrality pledges are more trusted in the market.
6. Brand Strength & Market Position
Revenue consistency is determined by brand loyalty, global footprint, and pricing power. Firms such as Toyota and Ford have high consumer confidence, whereas the brand equity of Tesla enables it to command high prices even though its production volumes are lower.
7. Financial Well-Being & Debt Ratio
Cash flow and debt management are important indicators due to high capital expenditure on R&D and manufacturing expansion. Compare the debt-to-equity and free cash flows to measure the financial stability and the ability to grow.
If you’re interested in diversifying your portfolio beyond the automotive industry, read our guide on the Top US Media & Entertainment Stocks to Watch in 2025.
Conclusion
The US auto industry exerts a powerful influence on the economy and stock market portfolio. Over 91.7% of American households possess a vehicle, and there is always a demand for more. A combination of traditional and EV automobile stocks helps you not only ensure a balance but also a high-return portfolio.
Before investing in the top automobile stocks, it is always important to keep up with the trends in the industry, sustainability initiatives, and technological changes as an investor. Investing in both traditional and electric vehicles allows you to offset risk and ensure growth.
FAQs about Popular Automobile Stocks in the US
What is the impact of increased interest rates on auto stocks?
Increased interest rates result in increased cost of borrowing to the consumers and hence reduced sales of vehicles. They also increase the cost of financing for automakers, which affects profitability.
Are hybrid cars a good decision as EVs expand?
Yes, hybrids are important as a transition technology, particularly to consumers who are not yet ready to make the transition to full EVs because of the inadequate charging infrastructure and range.
Which automaker is ahead in autonomous driving technology?
Tesla is the leader in autonomous features with its Full Self-Driving Beta, but Cruise by GM and BlueCruise by Ford are gaining traction very quickly in the US market.
What is the effect of battery recycling on EV manufacturers?
Battery recycling minimizes the risks in the supply chain, decreases the price, and enhances ESG compliance. The firms that invest in this area enjoy strategic and environmental benefits.
Do traditional automakers pay dividends to investors?
Yes, the vast majority of conventional car manufacturers, such as Ford and GM, issue regular dividends, and therefore, they are appealing to the income-oriented investors over EV startups.
