Can automotive stocks provide dividends?

Yes, automotive stocks can and do pay dividends. While Stellantis has suspended its 2026 dividend, Ford still offers a handsome dividend.

What is the best automotive stock to buy?

Investors are willing to pay a premium for car companies with powerful electric-vehicle brands, such as Tesla, and are discounting traditional internal-combustion-engine manufacturers. While the car industry is experiencing low unit sales growth, the winning stocks will ultimately be those relevant to the transition to hybrid and electric vehicles.

Which is the fastest-growing auto stock in the world?

China's BYD (OTC:BYDDY) is the world's largest EV manufacturer by unit sales and the fastest-growing major automaker.

What car companies are on the stock market?

Giants like Toyota, General Motors, Ford, and Stellantis own multiple brands. Other well-known brands with U.S. listings include Tesla, Honda (NYSE:HMC), Li Auto (NASDAQ:LI), Rivian (NASDAQ:RIVN), VinFast (NASDAQ:VFS), Nio (NYSE:NIO), Lucid (NASDAQ:LCID), and XPeng (NYSE:XPEV). Less-known car companies, such as NWTN (NASDAQ: NWTN) and Polestar (NASDAQ: PSNYW), are also listed on the U.S. market.

What car companies are on the S&P 500?

Tesla, Ford, and General Motors are all members of the S&P 500 index.

Who are the Big 3 in automotive?

Historically, the Big Three automakers have been Ford, General Motors, and Stellantis.

What stock to buy instead of Tesla?

If you don't believe in the robotaxi revolution and want to invest in a legacy automaker, then General Motors is arguably the best placed of the big three automakers.

Best Automotive Stocks for 2026 and How to Invest

By Lee Samaha – Updated Aug 16, 2026 at 8:33 PM EST | Fact-checked by Frank Bass

Key Points

Tesla's high valuation rests on its EV and autonomous driving leadership potential in the evolving automotive market.
Ford aims to stabilize its market position through profitable divisions while realigning its EV strategy.
Stellantis refocuses strategy on core brands and aims for growth through massive investments despite past EV setbacks.

Automotive stocks include companies that design, manufacture, and distribute automotive vehicles and their components. This includes automakers, component manufacturers, dealers, and auto parts retailers.

The industry is undergoing several transformative changes, including electric vehicles (EVs) and hybrids taking market share from internal combustion engine vehicles, an increasing reliance on recurring revenue, the advent of autonomous driving and robotaxis, and an ever-increasing share of a vehicle's value coming from software. Investors have plenty of thematic ways to play the market.

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An infographic showing the three types of auto industry companies: automakers, suppliers of auto parts, and auto dealer groups. — Image source: The Motley Fool.

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4 top Automotive stocks for 2026

The discrepancy in valuations between Tesla and the other automakers on this list tells you a lot about how the market values leadership in EV development, autonomous driving technology, and the potential of robotaxi businesses. In comparison, legacy automakers command low stock valuations because they face significant challenges in shifting their focus away from internal combustion engines (ICE).

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Ticker Information Table
Name and ticker	Current price	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield
Ford Motor Company (NYSE:F)	$13.93	$55.5 billion	4.31%
Tesla (NASDAQ:TSLA)	$348.95	$1.4 trillion	0.00%
Stellantis (NYSE:STLA)	$5.22	$15.1 billion	0.00%
General Motors (NYSE:GM)	$86.98	$76.3 billion	0.76%

Data as of Aug 25, 2026. Showing 4 of 4 total entries.

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Ford

The key to the investment case for Ford is the belief that it can sustain its market position in its core Ford Pro (commercial vehicles and solutions) segment, while maintaining competitiveness in Ford Blue (Gas and hybrid vehicles), and, over the long term, turn around its loss-making Ford Model e (EVs).

It's fair to say Ford's investment in EVs has not gone to plan in recent years, and like many others, it has had to adjust its strategy in the face of disappointing sales. Still, the good news is that Ford Pro and Ford Blue are highly profitable and provide excellent cash-flow support as Ford realigns Model e with the commercial realities of the EV market.

The company wrote off $19.5 billion in 2025 on its EV investments, and there's no guarantee its $5 billion "bet" on developing a universal EV platform will pay off. Management expects its latest EV investment initiative to result in a $30,000 midsize electric pickup in 2027. That's something for investors to keep a close eye on, particularly if it bolsters confidence that Ford will be a player in the EV transition while maintaining its leadership in commercial vehicles.

The stock is a perennial value candidate because the market doubts its ability to do the latter and remain relevant as the market shifts toward EVs. Those doubts may prove overly pessimistic, and Ford's valuation already reflects that skepticism. As such, its risk-reward profile may suit many value-oriented investors who believe in its realignment strategy.

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NYSE: F

Ford Motor Company

Today's Change

(-3.33%) $-0.48

Current Price

$13.93

Key Data Points

Market Cap

$56B

Day's Range

$13.78 - $14.40

52wk Range

$11.11 - $17.78

Volume

47.9K

Avg Vol

55.7M

Gross Margin

8.00%

Dividend Yield

4.31%

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Tesla

The leading EV company is leading the charge toward a commercially viable robotaxi company. While it's easy to dismiss robotaxis as an adjacent or add-on market, the reality is that CEO Elon Musk sees them as the inevitable evolution of the automotive industry and transportation in general.

EVs offer a significant cost-per-mile advantage over internal combustion engines but have an initial cost disadvantage. As such, their best use is seen in frequently driven vehicles, such as taxis. That cost advantage is even greater if the taxi is autonomous. That simple argument is why companies like Ford and General Motors also invested heavily in autonomous driving. They have since pulled back, but Tesla has not. If the company can scale a cost-effective robotaxi service using its Cybercab, then it could revolutionize transportation.

That said, Tesla's robotaxi rollout has not progressed at the pace Musk projected, while the company's capital spending plans are ramping up to support future growth and secure its supply chain by investing in lithium refineries, batteries, semiconductor manufacturing, and other essential technologies. Meanwhile, EV competition, notably on a global scale with Chinese manufacturers, continues to heat up.

Consequently, Tesla needs to execute on scaling robotaxi while managing cash burn to fully justify its valuation. While the valuation premium looks extremely high, the potential of its robotaxi business is massive and could revolutionize the auto industry's transition to autonomous vehicles.

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NASDAQ: TSLA

Tesla

Today's Change

(-3.83%) $-13.91

Current Price

$348.95

Key Data Points

Market Cap

$1.4T

Day's Range

$348.26 - $363.24

52wk Range

$297.38 - $498.83

Volume

206.3K

Avg Vol

42M

Gross Margin

18.85%

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Stellantis

If Ford is a value pick, then Stellantis is a deep value choice for investors. Like Ford, Stellantis misjudged the pace of EV adoption and took a massive write-down ($26 billion) on its EV and battery investments. Stellantis also suspended its dividend in 2026 and announced a business reset to "once again make our customers and their preferences our guiding star," according to CEO Antonio Filosa.

Clearly, the EV transition did not go as planned for automakers. Still, with EV sales growth outpacing traditional auto sales, it's definitely not a market Stellantis and others can ignore. For now, Stellantis will focus on its core brands—Jeep, Ram, Peugeot, and Fiat— while undertaking a massive $13 billion investment to drive growth in the U.S.

Management laid out the details of its FaST Lane 2030 turnaround strategy in May 2026, aiming to invest almost $69 billion over five years, with one goal being to produce affordable cars for the U.S. market. In addition, Stellantis will invest heavily in global platforms, optimize its manufacturing footprint, and develop strategic partnerships with Chinese manufacturers and technology partners, including Uber and Wayve.

If the plan works, Stellantis will be an excellent value. But with Wall Street analysts expecting net debt to grow due to increased spending, there's a long road ahead before the company can fully convince investors that its plan will revive its fortunes.

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NYSE: STLA

Stellantis

Today's Change

(-3.51%) $-0.19

Current Price

$5.22

Key Data Points

Market Cap

$15B

Day's Range

$5.14 - $5.30

52wk Range

$5.05 - $12.22

Volume

48.2K

Avg Vol

19.9M

Gross Margin

-168.00%

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General Motors

Stop me if you think you've heard this one before. Like Ford and Stellantis, General Motors overinvested in anticipation of EV adoption rates that didn't materialize. The company took a $6 billion charge on its EV business in early 2026. While Tesla is stepping up investment in EVs, General Motors is scaling back its EV manufacturing footprint amid market conditions.

It's a somewhat complicated picture: the near- to medium-term conditions favor a focus on generating earnings and cash flow from the company's strengths in internal combustion engine trucks and sport-utility vehicles (SUVs), but the industry's long-term future lies in EVs. Indeed, the company's mission statement refers to moving "to an all-electric future."

Still, General Motors is clearly the best-positioned of the legacy automakers to meet the challenges ahead. It's relatively well-positioned to manage the transition to EVs due to its robust cash generation and growth in Super Cruise subscriptions. The stock's rock-solid balance sheet, ongoing cash flow generation, and attractive valuation make it a relatively safe way to invest in a legacy automaker.

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NYSE: GM

General Motors

Today's Change

(-1.08%) $-0.95

Current Price

$86.98

Key Data Points

Market Cap

$76B

Day's Range

$85.71 - $88.27

52wk Range

$54.33 - $91.85

Volume

57.8

Avg Vol

7.4M

Gross Margin

5.74%

Dividend Yield

0.76%

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How to invest in automotive stocks

Open your brokerage account: Log in to your brokerage account, where you manage your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in automotive stocks

It's an industry in the throes of transformation. If Tesla, in particular, can revolutionize it with cost-effective robotaxis, investors can enjoy the fruits of the shift from relatively low-margin, capital-intensive manufacturing to recurring software and ride-share revenue.
Automakers operate in an industry that's an essential part of the global economy.
Growing services and software revenue can lead to rising profit margins and cash flow for the industry.

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Methodology: How these stocks were chosen

These stocks were chosen because they highlight the wide range of investment profiles within the industry and their roots in the key challenges and opportunities in the automotive sector in the coming years.

Tesla is a highly valued, high-growth stock with exposure to the technologies that the industry has been developing over the last decade, including EVs and autonomous driving. At the same time, investors should recognize that the EV transition, just like the clean energy transition, hasn't progressed as quickly as most hoped and believed. That realignment of expectations has challenged all four of these companies.

However, it's also created opportunities. The legacy automakers are leaning back into their core strengths of internal combustion engines while still investing, albeit at a slower pace than previously, in hybrids and EVs. Meanwhile, Tesla has an opportunity to create clear blue water between itself and legacy automakers by developing its robotaxi and full self-driving capabilities. It makes for a fascinating investing landscape.

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Should you invest in automotive stocks?

Automotive stocks can be important contributors to your investment portfolio. And because they rise and fall with consumer confidence, they can be useful indicators that economic trouble -- or a recovery -- may be on the way.

In addition, investing in an automotive manufacturer implies a positive view of the company's long-term hybrid and electric-vehicle strategy. That's become harder to judge, as relatively high interest rates have slowed EV unit sales growth, driven price cuts, and intensified competition.

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Automotive Stocks FAQ

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About the Author

Lee Samaha is a contributing Stock Market Analyst at The Motley Fool covering industrials, electricals, energy, materials, transportation, and infrastructure stocks. Prior to The Motley Fool, Lee was a Civil Engineer and Investment Manager. He holds a Bachelor of Civil and Structural Engineering from Southampton University and a Certificate in Investment Management from Chartered Institute for Securities & Investment. Lee first cut his investing teeth on The Motley Fool bulletin boards (commonly referred to as the “Fool Boards,”) and he’s infinitely grateful to all of the investors he learned from in this powerful investing community.

TMFSaintGermain

@LeeSamaha

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors, Stellantis, and Volkswagen Ag and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.

Best Automotive Stocks for 2026 and How to Invest

Key Points

4 top Automotive stocks for 2026

Ford

Key Data Points

Tesla

Key Data Points

Stellantis

Key Data Points

General Motors

Key Data Points

How to invest in automotive stocks

Benefits and risks of investing in automotive stocks

Methodology: How these stocks were chosen

Should you invest in automotive stocks?

Related investing topics

Consumer and Industry Outlooks on Electric Vehicles

3 Best Self-Driving Car ETFs for 2026 and How to Invest

Automobile Trade Statistics: Imports and Exports

5 Best Electric Vehicle ETFs for 2026 and How to Invest

Automotive Stocks FAQ

Can automotive stocks provide dividends?

Can automotive stocks provide dividends?

What is the best automotive stock to buy?

What is the best automotive stock to buy?

Which is the fastest-growing auto stock in the world?

Which is the fastest-growing auto stock in the world?

What car companies are on the stock market?

What car companies are on the stock market?

What car companies are on the S&P 500?

What car companies are on the S&P 500?

Who are the Big 3 in automotive?

Who are the Big 3 in automotive?

What stock to buy instead of Tesla?

What stock to buy instead of Tesla?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

4 top Automotive stocks for 2026

Ford

Key Data Points

Tesla

Key Data Points

Stellantis

General Motors

Key Data Points

How to invest in automotive stocks

Benefits and risks of investing in automotive stocks

Methodology: How these stocks were chosen

Should you invest in automotive stocks?

Consumer and Industry Outlooks on Electric Vehicles

3 Best Self-Driving Car ETFs for 2026 and How to Invest

Automobile Trade Statistics: Imports and Exports

5 Best Electric Vehicle ETFs for 2026 and How to Invest

Automotive Stocks FAQ

Can automotive stocks provide dividends?

Can automotive stocks provide dividends?

What is the best automotive stock to buy?

What is the best automotive stock to buy?

Which is the fastest-growing auto stock in the world?

Which is the fastest-growing auto stock in the world?

What car companies are on the stock market?

What car companies are on the stock market?

What car companies are on the S&P 500?

What car companies are on the S&P 500?

Who are the Big 3 in automotive?

Who are the Big 3 in automotive?

What stock to buy instead of Tesla?

What stock to buy instead of Tesla?

Key Data Points