Tesla is the only U.S. automaker that looks attractive heading into 2025 as the industry will face volatility under a second Trump administration, according to Deutsche Bank. Tesla is at the forefront of autonomous driving technology with its competitors trailing behind, Deutsche analysts lead by Tim Rokossa told clients in a note on Monday. If Tesla successfully executes on robotaxi rides in promised areas, the automaker will “unlock a new bar in autonomous driving that’s hard for others to replicate,” the analysts wrote. Traditional carmakers such as Ford and General Motors , on the other hand, face an uncertain outlook over the next one to two years with President-elect Donald Trump vowing to axe electric vehicle tax credits and impose tariffs, according to Deutsche. “Should the [Inflation Reduction Act] get repealed/changed or extra tariffs get levied for imported parts, Tesla’s relative competitive position would only strengthen, in our view,” the analysts wrote. Tesla has the highest U.S. content of any major EV model sold in the U.S. and the cost structure of its cars is far ahead of competitors, according to the analysts. Ford and GM, on the other hand, are relying more on federal tax incentives to improve EV profitability. Deutsche also likes the auto parts suppliers Autoliv and Dana . Autoliv has powertrain-agnostic offerings that could weather the Trump administration. Dana recently sold its business unit that caters to heavy-duty vehicles, freeing up cash to delever its balance sheet, according to Deutsche. Tesla has gained 60% this year, while Autoliv and Dana have fallen about 9% and more than 10%, respectively.
Deutsche Bank only likes one automaker stock for 2025