Ford, GM, Or Stellantis? Retail Bulls Back 2 Automakers, But One Faces Waning Confidence Amid Trump Tariff Anxiety

Ford and GM unveiled their AI-driven strategies, while Stellantis struggled with declining sentiment and Wall Street downgrades.

Detroit's "Big Three" automakers are under pressure from President Donald Trump's proposed tariffs on Canada and Mexico. Still, retail investors are showing more confidence in Ford and General Motors, while Stellantis faces growing skepticism — in tandem with broader market sentiment.

Ford shares rose nearly 2.5% last week after reports surfaced about the company accelerating innovation with AI models from OpenAI, Anthropic, and China's DeepSeek. 

The automaker is also preparing its data centers for the next generation of Nvidia chips.

Stocktwits sentiment for Ford ended the previous week on a more 'bullish' note, although message volume remained in the 'low' zone.

One bullish user feels the stock could pop 16% from the last close.

GM posted slightly stronger gains of over 2.6% last week, with Stocktwits sentiment shifting to 'bullish' from 'bearish,’ after the company partnered with Nvidia to integrate AI, simulation, and accelerated computing into next-generation vehicles, factories, and robotics.

One retail watcher said GM's stock looks "like it wants to explode and test $54.09."

Jeep maker Stellantis, however, lost nearly 3% last week, and retail sentiment on Stocktwits remained in a 'bearish' zone.

The Italian-American carmaker said it had started offering voluntary buyouts to factory workers in Detroit, Ohio, and Illinois to cut costs.

Its chairman also said the company would appoint a new CEO by the first half of this year.

On Wall Street, Piper Sandler had a mixed take on these automakers.

The research firm cut its price target on Ford to $9 from $13, maintaining a 'Neutral' rating. It noted that while Ford's cash-generating businesses have helped cover warranty campaigns and failed electric vehicle launches, addressing these challenges could take years. 

General Motors, meanwhile, saw its price target raised to $48 from $45, with Piper keeping a 'Neutral' rating. The firm credited GM for solid execution and positioning itself as the best-run Detroit automaker. It also noted that GM's stock buybacks and low valuation offer downside protection.

However, Piper downgraded Stellantis to 'Neutral' from 'Overweight' and slashed its price target to $13 from $23, saying global brand issues could take years to resolve, delaying margin recovery. 

The research firm also pointed to Stellantis' lack of a CEO, higher tariff exposure compared to Ford and GM, and concerns over its electric vehicle pricing in the U.S. and margin dilution in Europe.

While tariffs on industrial sectors like cars and chips were expected on April 2, a Sunday report in the Wall Street Journal suggests the White House may scale them back. 

Some retail investors see this as a potential boost for legacy automakers.

Year-to-date, Ford has risen by nearly 1%, while GM and Stellantis have lost more than 6%.

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