According to a Wall Street Journal report, the U.S. auto industry registered its worst decline in 2022. The U.S. auto sales came in at 13.7 million vehicles in 2022, down 8% year-over-year. Supply shortages and cost headwinds weighed on auto sales. While the industry faces challenges, rising interest rates and the threat of a recession could dampen consumer spending and, as a result, auto sales in 2023.
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The report highlighted that General Motors (NYSE:GM) defied the industry trend and achieved industry-leading sales. In 2022, General Motors delivered 2.2 million vehicles in the U.S., up 3% year-over-year.
Steve Carlisle, GM’s EVP for North America, said, “GM is carrying strong momentum in North America into 2023.”
While GM’s management is bullish, Jefferies analyst Bret Jordan believes that “higher ticket purchases like new vehicles & RVs that generally require financing to come under pressure” in 2023. Jordan said that higher interest rates and an economic downturn could pressure consumers and hurt vehicle sales.
Echoing similar sentiments, Mizuho Securities analyst Vijay Rakesh sees a “challenging Auto end-market globally into 2023.” Rakesh expects higher financing costs and energy prices to hurt demand.
However, Rakesh is bullish on EV (Electric Vehicle) manufacturers, including Tesla (NASDAQ:TSLA), Nio (NYSE:NIO), and Rivian Automotive (NASDAQ:RIVN).
Which is the Best Auto Stock?
Using TipRanks’ Stock Comparison tool, let’s find out how the shares of these automakers stack up against each other.
The data shows that analysts are cautiously optimistic about most auto stocks. However, Toyota Motor (NYSE:TM) stock has a Hold consensus rating. Only Ford Motor Company (NYSE:F) carries an Outperform Smart Score on TipRanks along with a Buy recommendation.
