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]

Key Takeaways Toyota projects fiscal 2026 operating income of 3.2 trillion yen, down 33.2% from last year.R&D and capex are set to rise, straining margins and near-term cash flows.Toyota's debt-to-capitalization is 38%, above the industry average of 28%.Toyota Motor Corporation (TM) , one of the leading automakers in the world in terms of sales and production, is struggling with rising operating expenses and capital requirements.Let’s see why you should consider offloading this Zacks Rank #5 (Strong Sell) s ...