Ferrari Stock Is Racing Higher. GM and Ford Could Get Left Behind.

Ferrari stock closed at a record high last week. (John Phillips/Getty Images)

Among auto stocks, Ferrari stands out, gaining 18% so far this year, a stark contrast to Tesla’s 17% decline in 2025. Some analysts have suggested Ferrari might be viewed as relatively “tariff-proof,” contributing to the outperformance.

Technical analysis suggests that Ferrari could leave other legacy auto makers’ shares in the dust.

Since breaking above the key $400 level in February 2024, the stock has traded in a well-defined range between $400 and $500, repeatedly stalling at the upper end before finally closing at an all-time high of $505.40 last week.

While a failure to break above $500 would justify investors’ exit from the stock, the technical setup now leans bullish. With momentum building, a push toward $600 in the coming months looks increasingly plausible for the luxury car maker.

General Motors opened earnings season for the auto group on Tuesday and slid steadily throughout the session, closing down 8% at the day’s low.

The stock has now fallen 25% from its all-time high of $65.74 set on Jan. 4, 2022. An attempted double-bottom breakout above a $53.39 pivot, based on the March 26 intraday high as seen on the chart below, quickly unraveled.

The best breakouts tend to work right away, and a drop toward the mid-$40s in the near term seems likely.

Ford Motor appeared largely unfazed by General Motors’ weakness on Tuesday, holding firm ahead of its earnings report next Wednesday after the close.

Technically, the stock is retesting a recent breakout above a cup-with-handle pattern, with the $10.97 pivot, cleared on July 1, serving as a key level. This pattern forms with a rounded bottom and a handle that takes shape over five to 10 sessions with low volume and little downward price movement.

This kind of retest is normal and often healthy, and Ford stock deserves credit for maintaining composure despite a recent recall that could have rattled sentiment.

Honda is acting firmly in the early going, up better than 12% on Wednesday, following the Japan trade deal announced overnight.

Truth be told, this name was in fine form before the statement. Coming into Wednesday’s action, the stock has risen 6% so far this year, compared with main rival Toyota’s 12% decline. Honda also pays a handsome dividend yield of 4%.

On the daily chart below one can see former apprehension near the round $30 number now looks supportive. It is now comfortably above a $31.19 cup with handle pivot, but instead of chasing this name let the euphoria wear off somewhat and look for a purchase in the $32.50 area in the coming days.

Write to Doug Busch at douglas.busch@barrons.com