Tesla (TSLA) and other US auto original equipment manufacturers, excluding Rivian Automotive (RIVN) and Lucid Group (LCID), are expected to benefit from pricing power and higher average transaction prices heading into earnings, driven by a resilient seasonally adjusted annual rate, or SAAR, RBC Capital Markets said in a note emailed Monday.

General Motors (GM) and Ford Motor (F) could see "meaningful" upside from a potential US-Mexico bilateral trade agreement before the end of the year, RBC analysts said.

Despite negative investor sentiment, the analysts said that Tesla's risk-reward profile leans positive, with Q3 deliveries surpassing consensus estimates, while the Q3 consensus on automotive gross margins excluding regulatory credits are "reasonable."

Meanwhile, General Motors is well-positioned to surpass its pricing growth target of 0.5% for 2026, supported by the steady SAAR environment in the US, the analysts said. They added that the company's 2027 outlook remains "compelling," with profit growth driven by Gen 6 truck platform contributions and narrowing EV losses, among other factors.

RBC maintained its rating on General Motors' stock at outperform and raised the price target to $102 from $100. The brokerage kept Tesla's stock rating at outperform with a price target of $480 and Ford at sector-perform with a price target of $15.

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