Investing.com -- Wolfe Research highlighted three automakers with potential for positive performance this earnings season, naming Ford Motor Co (NYSE: F), General Motors Co (NYSE: GM), and BorgWarner Inc (NYSE: BWA) as stocks with favorable setups.

The research firm noted that 2026 has started with volatility for the auto sector, with most stocks declining since the Iran conflict began. Investor concerns center on input cost inflation, supply chain disruption, and potential demand softening.

Wolfe Research expects minimal evidence of these factors in first-quarter 2026 earnings but said the risk factors could begin affecting full-year 2026 earnings guidance for some companies.

The firm identified Magna International Inc (NYSE: MGA), Aptiv PLC (NYSE: APTV), and Goodyear Tire & Rubber Co (NYSE: GT) as stocks with more cautious setups, including downside risk to their outlooks.

For Tesla Inc (NASDAQ: TSLA), Wolfe Research sees downside to both first-quarter and full-year consensus expectations. However, the firm said stock reaction will likely depend more on the company's Robotaxi messaging and milestones than quarterly results.

Beyond earnings season, Wolfe Research continues to rate GM, Autoliv Inc (NYSE: ALV), BWA, and Vignette Corp (NASDAQ: VGNT) as Outperform.