Bank of America has resumed research coverage of the North American automotive and auto-tech sector, identifying a trio of automakers it believes are best positioned for the shifting regulatory and market landscape heading into 2026. The bank's analysts point to a regulatory tilt that favors higher-margin internal combustion engine vehicles and to accelerating consumer uptake of autonomous driving and robotaxi services.
In its updated coverage, Bank of America sees the broader sector outperforming expectations this year as new mobility themes gain traction. Analysts expect investors to place greater emphasis on non-traditional profit pools - including humanoid robots and energy-generation businesses - alongside autonomous vehicle offerings, a constellation of revenue streams the bank groups under an "Auto 2.0" framework.
Top picks overview
Bank of America highlighted three original equipment manufacturers as its top picks within the North American market: Ford Motor, General Motors and Tesla. For each company, the bank provided a Buy rating and a specific price objective tied to an enterprise value multiple of estimated 2027 adjusted EBITDA.
Ford Motor
The bank reinstated coverage of Ford with a Buy rating and set a $17 price objective, derived from an enterprise value equal to 3.8 times Bank of America's estimate of Ford's 2027 adjusted EBITDA. The analysts argue Ford stands to benefit from the recent regulatory environment that should permit a stronger emphasis on its most margin-accretive trucks and SUVs.
Bank of America noted Ford improved its U.S. market share by 50 basis points in 2025 and sits third in total retail share at 13.2%. The company is reported to hold the number two position in the U.S. pickup truck segment with just over 30% share, and its F-Series nameplate remains the top U.S. offering by nameplate sales. The bank expects a more resilient-than-anticipated U.S. demand backdrop to support Ford's retail operations and to drive a $1.2 billion improvement in Ford Blue EBIT.
On the electric vehicle front, Bank of America projects the Model E unit of Ford to post $4.3 billion in losses in 2026, which the bank describes as an improvement of $500 million compared with 2025.
In other developments cited by the bank, Piper Sandler reaffirmed an Overweight recommendation on Ford, pointing to progress in software and service offerings. Separately, Ford disclosed a recall of nearly 4.4 million vehicles tied to a software defect that could disable trailer lighting and braking systems.
General Motors
Bank of America reinstated coverage of General Motors with a Buy rating and a $105 price objective, using an enterprise value equal to 3.5 times its 2027 EBITDA estimate. The bank views GM as a primary beneficiary of regulatory changes that allow a product mix shift toward its more margin-accretive trucks and SUVs.
GM is identified as the top U.S. automaker by retail market share at 17.1%, a level that the bank says has risen by 110 basis points over the past three years. The company holds three of the top 10 U.S. nameplates, namely Chevrolet Silverado, GMC Sierra and Chevrolet Equinox.
Bank of America flagged potential near-term capacity constraints for GM in 2026, driven by plant downtime associated with new truck launches; however, the bank expects momentum to return into 2027, forecasting roughly 300,000 units of incremental capacity.
GM's most recent financial disclosure cited by the bank shows fourth-quarter 2025 adjusted earnings of $2.51 per share, which exceeded analyst expectations. Following that performance, Benchmark raised its price target on the automaker, pointing to execution that was stronger than anticipated.
Tesla
Bank of America also reinstated Tesla with a Buy rating and a $460 price objective, describing the company as the current leader in consumer autonomy. The analysts expect Tesla to scale robotaxi operations more profitably than its competitors and to emerge quickly as a leader in that service category.
According to the bank, Tesla's robotaxi service is already operating in San Francisco and Austin, with seven additional markets expected to come online in the first half of 2026. Bank of America estimates that robotaxi prospects account for roughly 52% of Tesla's valuation.
The bank views Tesla's Full Self-Driving software as the leading consumer autonomy solution and cites about 1.1 million FSD subscriptions, representing approximately 12% of Tesla's current fleet. Analysts also identified potential upside from Tesla's Optimus humanoid robot program and its Energy business, which they value at more than $30 billion and $90 billion, respectively.
On sales performance details cited by the bank, Tesla reported mixed results in Europe for February, including a 45.2% year-over-year decline in the U.K., while the company gained market share in France and Norway during the same month.
Context and implications
Bank of America's reinstated coverage and selection of Ford, General Motors and Tesla reflect a view that regulatory shifts and the gradual commercialization of autonomy-related services are reshaping profit pools within the auto sector. The bank's analysis ties valuation targets to anticipated 2027 adjusted EBITDA outcomes and highlights a blend of traditional ICE-market strength and emerging mobility-related revenue streams as determinants of future performance.
Summary
Bank of America has resumed coverage of the North American auto and auto-tech sector and identifies Ford, GM and Tesla as its top OEM picks, assigning Buy ratings and respective price objectives tied to 2027 EBITDA multiples. The bank points to regulatory shifts that allow a rotation toward higher-margin trucks and SUVs and to accelerating adoption of autonomous vehicles and robotaxi services, while also drawing attention to alternative profit pools such as humanoid robotics and energy generation.