Bank of America analysts wrote that reduced regulatory requirements, particularly those relating to carbon dioxide emissions, will bring much-needed flexibility to the automotive industry. These analysts say the US is already leading the trend and may even completely abolish carbon dioxide regulations. The bank added that Europe will not go that far, but it may postpone the ban on internal combustion engine vehicles until after 2040. “We believe the cheapest stocks will benefit the most from deregulation, but ultimately, the discounted cash flow prospects for all automakers — from Renault to Ferrari — will improve. “The bank raised Renault and Porsche's stock rating from “neutral” to “buy” and the rating of Mercedes-Benz from “weaker than the market” to “neutral” on valuation grounds. Shares of Porsche, Volkswagen, BMW, Mercedes-Benz, Ferrari, Renault, Volvo Cars and Porsche all rose 3.5% to 5%.

Bank of America analysts wrote that reduced regulatory requirements, particularly those relating to carbon dioxide emissions, will bring much-needed flexibility to the automotive industry. These analysts say the US is already leading the trend and may even completely abolish carbon dioxide regulations. The bank added that Europe will not go that far, but it may postpone the ban on internal combustion engine vehicles until after 2040. “We believe the cheapest stocks will benefit the most from deregulation, but ultimately, the discounted cash flow prospects for all automakers — from Renault to Ferrari — will improve. “The bank raised Renault and Porsche's stock rating from “neutral” to “buy” and the rating of Mercedes-Benz from “weaker than the market” to “neutral” on valuation grounds. Shares of Porsche, Volkswagen, BMW, Mercedes-Benz, Ferrari, Renault, Volvo Cars and Porsche all rose 3.5% to 5%.