Industry Overview - The global auto industry is projected to maintain a 5.7% compound annual growth rate (CAGR) from now until 2030, making it an attractive sector for investors seeking dividend yields and growth prospects [1] Tesla (TSLA) - Tesla has redefined the auto industry and was the first automaker to reach a $1 trillion market cap, although its valuation is challenging to justify based solely on car sales [3] - Analyst Ben Kallo raised Tesla's price target from $320 to $548 and upgraded the stock to "outperform," citing potential leadership in physical AI as a key factor for future growth [4] General Motors (GM) - General Motors has seen its stock more than double over the past five years, offering a 1% yield, and is strategically positioned to leverage the growing demand for electric and autonomous vehicles [5][6] - Citi analyst Michael Ward maintained a "buy" rating on GM and raised the price target from $61 to $75 per share, indicating bullish sentiment [6] Magna International (MGA) - Magna International is noted for its advanced technology and offers a dividend yield above 4%, with potential for stock rally if it can capitalize on the EV and autonomous vehicle markets [7]
Top 3 Auto Stocks To Watch for 2026, According to Experts