Forget Tesla: These 2 Earnings Reports Reveal Where the Auto Market Is Heading

Forget Tesla: These 2 Earnings Reports Reveal Where the Auto Market Is Heading Written by Sam Quirke | Reviewed by Shannon Harms July 27, 2026 Share Link copied to clipboard. Key Points General Motors showed that traditional auto profits remain strong when pricing, trucks and SUVs hold up. Mobileye’s results showed adoption of driver-assistance technology is still growing, but pricing and leadership uncertainty remain concerns. Together, the reports suggest the future of autos may come in stages rather than through a smooth, fast shift to EVs and autonomy. Five stocks we like better than General Motors . General Motors Co. NYSE: GM and Mobileye Global Inc. NASDAQ: MBLY both reported earnings recently, and between them, they said as much, if not more, about where the car industry is actually heading than any amount of noise around Tesla Inc. NASDAQ: TSLA after its own report . The two sit at opposite ends of the same industry. GM, a $73 billion auto-giant, tells you what consumers are buying, what they're willing to pay, and whether the shift to electric is making or losing money. Mobileye, an $8 billion auto-technology company, tells you what automakers are spending on the driver-assistance and autonomy systems meant to define the next decade. Get General Motors alerts: Sign Up Read together, the two reports point to a conclusion that won't please anyone hoping the future of driving arrives on schedule. For investors willing to accept that, though, both stocks offer an interesting way to play it. GM Is Making Money the Unglamorous Way General Motors Today GM General Motors $85.47 +2.83 (+3.42%) As of 09:09 AM Eastern 52-Week Range $51.69 ▼ $87.62 Dividend Yield 0.84% P/E Ratio 43.17 Price Target $99.68 Add to Watchlist The message from GM’s report was clear : demand is solid. The company beat on both lines and raised full-year profit guidance for the second time this year, which isn't something a business does when it's worried about what's coming. What sits underneath that is more interesting. GM has been holding pricing relatively steady, rather than trying to buy volume through discounts, with its incentive spending running comfortably below the industry average. That distinction matters because a carmaker that has to discount to move inventory is telling you something very different from one that doesn't. Unsurprisingly, its truck and SUV franchise remains the engine. GM held well over 40% of the U.S. full-size pickup market in the quarter, and its large SUVs are outselling the nearest competitor by roughly three to one. Margins expanded meaningfully on the back of lower warranty costs and better operating efficiency, while the software side of the business, built around OnStar and Super Cruise, kept growing at a healthy clip. There was one blemish of note: management trimmed net income guidance because of ongoing electric vehicle (EV) costs, even as it raised the operating profit outlook. In other words, its traditional business is doing the heavy lifting, and the ongoing electric transition is still finding its way. Mobileye Is Winning Adoption But Losing Margin Mobileye Global Today MBLY Mobileye Global $8.46 +0.41 (+5.09%) As of 09:08 AM Eastern 52-Week Range $6.47 ▼ $15.81 Price Target $12.95 Add to Watchlist Mobileye's report was a little messier, though, at the same time, more revealing. The company also beat analyst expectations , but shares traded down anyway on a combination of soft forward guidance and news that its founder, Amnon Shashua, intends to step down, with no successor yet named. That latter headline was always going to spook investors, but the number that mattered the most was buried in the guidance. Unit shipments actually grew year on year, meaning automakers are still fitting Mobileye's systems into more vehicles. But the average price per system fell, which helps explain why the company is guiding to roughly flat revenue despite selling more units. That's the whole story in a sentence. Adoption of driver-assistance technology might be intact and broadening, but the economics are not improving at the same pace, squeezed in part by the growth of Chinese automakers exporting at volume. In other words, its technology is being used more and more, but that isn't translating into stronger pricing. Analysts See Similar Upside But Different Risk Profiles The reaction to both reports was interesting. GM saw a wave of price target increases in the days after its print, with Goldman Sachs, Morgan Stanley, Royal Bank of Canada and TD Cowen all moving higher while maintaining bullish ratings. The most aggressive of those came from TD Cowen, whose fresh street-high target of $132 implies close to 60% upside from current levels . Mobileye's results weren’t covered as in-depth, but the upside opportunity identified was equally compelling. The team at Needham reiterated their Buy rating on the stock with a target of $13, also implying close to 60% upside. However, investors getting involved need