U.S. Automotive Industry Faces Spring Test Amid Tax Season
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy GM?
Source: CNBC
- Tax Impact on Buying Intent: With tax season underway, the average tax refund for Americans is projected to rise by 10.9% to $2,290, potentially encouraging consumers priced out of the new vehicle market to reconsider purchases, thereby offering a short-term sales boost for the automotive industry.
- Historical Sales Trends: March is typically a peak month for U.S. vehicle sales, averaging 9.1% of annual new vehicle sales over the past 12 years, second only to December at 9.3%, suggesting that tax changes could drive a rebound in sales during this critical period.
- Loan Condition Changes: Despite current federal interest rates between 3.5% and 3.75%, leading to higher financing costs, consumers are agreeing to longer-term loans, with Carmax reporting an average monthly payment of $772 for new vehicles, reflecting buyers' adaptive strategies in a high-price environment.
- Low Consumer Confidence: Even with additional tax funds, consumer confidence fell to 84.5 in January, the lowest since May 2014, indicating that high prices and a weakening labor market negatively impact purchasing decisions, leaving buying intent under significant pressure.
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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: 78.710
Low
57.00
Averages
95.06
High
122.00
Current: 78.710
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, Cruise and GM Financial. Its GM North America (GMNA) and GM International (GMI) develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company provides automotive financing services through its General Motors Financial Company, Inc. (GM Financial) segment. Its Cruise segment is engaged in the development and commercialization of autonomous vehicle technology. Its software-enabled services and subscriptions, including OnStar, its advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and its end-to-end software platform. The Company is also focused on investing in electric vehicles (EVs) and AVs, software-enabled services and subscriptions and new business opportunities.
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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- Surge in Trading Volume: Trading volume reached 103.7 million shares, approximately 70% above the three-month average, indicating heightened market concern regarding Ford's quality issues.
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See More
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- Oil Price Risks: Analysts predict that if the conflict escalates, oil flow through the Strait of Hormuz could be affected, leading to rising oil prices, with Brent crude already up 8% to $78.49 per barrel, potentially putting pressure on automakers.
- Sales Dynamics: Ford's sales in Saudi Arabia have increased by 5%, while GM and Stellantis are experiencing declining sales in the Middle East, indicating Ford's expanding market share and competitiveness in the region.
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