Ford Motor Co. (NYSE:F) is better equipped than General Motors (NYSE:GM) to navigate the evolving U.S. landscape on emissions and trade policy, according to Jefferies analysts, who upgraded Ford’s stock and highlighted its stronger regulatory flexibility.
The brokerage raised its rating on Ford to Hold from Underperform and increased its price target to $12 from $9, citing the company’s broader product mix that includes internal combustion, hybrid, and electric vehicles. This balance, Jefferies said, gives Ford an advantage in managing both potential tariff hikes and tighter CO₂ standards.
Analysts noted that Ford could benefit if regulators ease greenhouse gas restrictions or extend clean-energy production incentives, while its strong emissions compliance record means it faces lower penalty risks than competitors.
Jefferies added that any relaxation of CO₂ limits on heavier models such as pickups and SUVs could boost profitability from Ford’s “Blue” combustion business, which it now expects to deliver improved margins.
Meanwhile, General Motors was kept at Hold, with Jefferies warning that GM remains more vulnerable to tariffs and has less flexibility to adjust its product lineup. While GM maintains market dominance in full-size pickups and SUVs, the firm continues to lose money on its electric vehicle operations, and Jefferies expressed skepticism about its ability to narrow those losses quickly.
Ford has previously identified a multibillion-dollar opportunity if emissions regulations are relaxed, and Jefferies anticipates that management could signal strategic adjustments later this year, including a slower EV rollout or greater emphasis on hybrid models. The firm also raised its 2026–2027 earnings forecast by roughly 4%, citing higher profits from combustion vehicles.
However, the analysts cautioned that warranty costs and European restructuring efforts remain headwinds, and the stock still appears pricey relative to cash flow.
“Operating drivers look more supportive but cannot offset overhangs,” Jefferies wrote, while naming Stellantis as its preferred U.S.-listed auto stock.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.