Donald Trump promises no US state will be allowed to ban gas-powered cars if he's elected — 3 stocks to ride the wave if oil and gas continue to reign

However, this sweeping shift doesn’t sit well with former U.S. President Donald Trump. Speaking at a rally in Saginaw, Michigan, the Republican presidential nominee declared, “When I'm president, no state in America will be permitted to ban gas-powered cars or trucks, and I guarantee it — no way, no way. You're going to make them right here.”

If Trump wins the election and succeeds in halting state-level plans to phase out gas-powered cars, the automotive landscape could shift dramatically. Here’s a look at three stocks that could benefit from this potential move — stocks that Wall Street already finds attractive.

Ford (F)

Ford has been making headlines with its push toward electrification, rolling out models like the Mustang Mach-E, an all-electric SUV, and the F-150 Lightning, an electric version of its flagship pickup truck. However, according to a report in Bloomberg, Ford’s losses per electric vehicle exceeded $100,000 in the first quarter of 2024, prompting the company to cut battery supplier orders.

To recalibrate, Ford is pivoting production at its Oakville, Ontario plant. Originally slated for electric SUV production, the plant will be prioritizing its high-demand F-Series Super Duty trucks.If Trump prevents states from banning gas-powered cars, Ford could continue to thrive in the truck and SUV market, especially given the F-Series’ status as America’s best-selling vehicle.

Goldman Sachs analyst Mark Delaney has a “buy” rating on Ford and a price target of $13, implying a potential upside of 20%, given the stock’s current price of just over $10.

General Motors (GM)

General Motors, like Ford, has heavily invested in EVs while still leaning on its profitable lineup of gas-powered cars, SUVs and trucks, including popular models like the Chevrolet Silverado and GMC Sierra.

Wedbush analyst Daniel Ives has an “outperform” rating on GM and a price target of $55 — 7% above where the stock sits today.

GM sold only 75,883 EVs last year — accounting for just 2.9% of the company’s total sales. CNBC noted that “a vast majority of those” of those sales came from GM's now-discontinued Chevrolet Bolt models.

Exxon Mobil (XOM)

Exxon Mobil is one of the largest oil-and-gas companies in the world, with more than 11,000 gas stations across the U.S.In 2023, the company generated $36 billion in profits and $55.4 billion in cash flow from operating activities. Exxon shares have already surged 14% in 2024, and UBS analyst Josh Silverstein sees further upside on the horizon. Silverstein has a “Buy” rating on Exxon and a price target of $149 — roughly 28% above the current price.

What to do if you’re feeling bullish

If you’re feeling bullish on the oil-and-gas and automotive markets coming into 2025, you’ll want the right advice on which companies are leaning into the growth curve.

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