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February U.S. Auto Sales Rise, GM Increases Dividend and Buybacks

February U.S. auto sales have risen to 1.23 million units, signaling positive momentum. General Motors impresses with a 25% dividend hike, while Advance Auto Parts and Standard Motor Products also report strong results, suggesting an optimistic outlook for the sector.

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AI Rating:   7

Auto Sales and Market Sentiment
February U.S. auto sales are projected at 1.23 million units, marking an increase from January's 15.6 million SAAR. This growth, supported by pricing, inventory, and incentives, reflects a recovery in consumer confidence, although ongoing economic uncertainties may temper future demand.

General Motors (GM)
General Motors announced a significant 25% increase in its quarterly dividend, raising it to 15 cents per share, effective April 2025. The company has also initiated a $6 billion share buyback program. GM's robust financial health is highlighted by $14 billion in adjusted auto free cash flow and a total automotive liquidity of $35.5 billion, contributing positively to investor sentiment.

Advance Auto Parts (AAP)
Advance Auto Parts reported a narrower loss of $1.18 per share against estimates and achieved net revenues of $2 billion, surpassing expectations. However, year-over-year comparable store sales fell 0.9%. For 2025, AAP forecasts net sales of $8.4-$8.6 billion, underlining cautious optimism amid challenges.

Standard Motor Products (SMP)
Standard Motor achieved an adjusted EPS of 47 cents, exceeding expectations, with revenues rising to $343 million. However, operating income has declined, signaling mixed results. The company expects mid-teen sales growth in 2025, complemented by a 6.9% dividend increase, adding to positive investor perception.

Lucid Group (LCID)
Lucid Group reported a narrower loss per share of 22 cents, better than expected, with revenues rising significantly by 49% year-over-year to $234.5 million. This strong growth is attributed to increased vehicle deliveries, enhancing Lucid's market standing.

Tesla (TSLA)
Tesla plans to refresh its Model S and X and has initiated the regulatory approval process for its autonomous ride-hailing service. This innovation indicates Tesla’s commitment to maintaining leadership in the EV sector, which can positively affect its stock performance.

Stocks:  GM AAP SMP LCID TSLA