American Auto Industry Faces Major Challenges Amid Deregulation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2026
0mins
Source: seekingalpha
- Regulatory Changes: The Trump administration's termination of the Obama-era 'endangerment finding' is projected to eliminate over $1.3 trillion in regulatory costs, potentially leading to significantly lower car prices, although it raises concerns about environmental standards.
- Financial Crisis: Since late 2025, General Motors, Ford, and Stellantis have taken a combined $53 billion in write-offs related to their EV strategies, resulting in restructurings and layoffs, highlighting the severe financial pressures facing the industry.
- Increased Competition: American automakers are not only contending with fierce competition from China but also facing chip shortages and supply chain uncertainties due to trade tensions, complicating the industry's outlook.
- Future Development Dilemma: While EVs have made significant inroads globally, states like California continue to battle the federal government for stricter environmental regulations, placing automakers in a challenging position between adapting to market changes and regulatory compliance.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to rise
19 Analyst Rating
14 Buy
4 Hold
1 Sell
Moderate Buy
Current: 76.890
Low
57.00
Averages
95.06
High
122.00
Current: 76.890
Low
57.00
Averages
95.06
High
122.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI and GM Financial. Its GM North America (GMNA) and GM International (GMI) segment develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company's GM Financial segment provides automotive financing and related services. The Company is also focused on investing in electric vehicles (EVs) and autonomous vehicles (Avs), software-enabled services and subscriptions and new business opportunities. The Company's portfolio includes OnStar, GM Energy, GM Insurance, GM Genuine Parts, and the GM Company Store. Its OnStar portfolio offers safety, connectivity and hands-free driver assistance technologies. Its GM Energy provides Home EV Charging, Public EV Charging, Vehicle-To-Home and Energy Storage services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Valuation Potential: GM's CFO noted that the high margins from the connected business could potentially dwarf its wholesale operations, and despite facing subscription fatigue, the growth in this area presents new opportunities for investors, which may not be fully reflected in the current stock price.
See More
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See More
