We've compiled it recently Buy 12 small caps in stock now. In this article, we will explore the position of Borgwarner Inc. (NYSE:BWA) against other small electric vehicle EV stocks.
Electric vehicles (EVs) account for 8.1% of the 16 million cars sold in the U.S. in 2024, according to Cox Automobile. Although this is a record share, it is still below 10% expected by analysts at the beginning of the year. Still, some believe that the electric vehicle market may speed up.
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While overall adoption is slower than expected, brands like Cadillac are expanding their power lineup. By the end of 2025, Cadillac plans to offer five electric vehicles. These include the Escalade IQ, Optiq Crossover, Lyriq, the upcoming three-row Vistiq and the luxury Celestiq. Cadillac expects one-third of the cars sold in the U.S. this year will be fully electric.
Brad Franz, marketing director at Cadillac, told CNBC that the company is launching electric vehicles to grow its business and attract new customers to the brand, rather than just transferring sales from gas vehicles. According to Franz, the EV portfolio will offer customers more options. In 2024, the company sold about 29,000 electric vehicles. In 2025, Cadillac’s goal is to make electric vehicles account for 30 to 35% of U.S. sales.
However, Cadillac abandoned its early plan to sell only electric cars by 2030. Instead, the company said customer demand will determine the vehicle that eliminates gasoline-powered.
This approach reflects a broader trend. Many automakers have rejected plans to sell exclusive electric vehicles in the near future because customers are adopting less quickly than expected.
To compile a list of 12 small electric car stocks we are buying now, we reviewed our rankings and consulted various online resources to compile the best small electric car stock list. Note that we define small-cap stocks as stocks with a market capitalization of between $500 million and $10 billion. From the initial library of over 20 small electric vehicle stocks that meet our standards, we focus on the top 12 stocks that institutional investors like. Data on hedge fund sentiment around each stock are taken from Insider Monkey’s Q4 2024 database, which has over 1,000 elite hedge funds. Then, based on the number of hedge funds holding shares in the fourth quarter of 2024, the 12 small electric vehicle stocks purchased are now ranked in ascending order.
Why do we care about the work of hedge funds? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks every quarter, returning 373.4% since May 2014, exceeding 218 percentage points. ((See more details here).
Workers assemble state-of-the-art engines in modern automobile factories.
Market value: US$6.65 billion
Number of hedge fund holders: 43
Borgwarner Inc. (NYSE:BWA) is a global supplier of automotive and electronic mobility solutions. The company provides essential components for internal combustion, hybrid and electric vehicles. It mainly designs, manufactures and sells products mainly to original equipment manufacturers (OEMs). Borgwarner Inc. (NYSE:BWA) is one of the best electric vehicle shares to buy now.
On May 8, JPMorgan raised its price target for Borgwarner Inc. (NYSE:BWA) from $42 to $43 and maintained its "overweight" rating. The decision is the company's revenue and earnings before interest and taxes both surpass JPMorgan's estimates and Bloomberg's consensus after the company's first quarter 2025 results. Borgwarner Inc. (NYSE:BWA) reported revenue of $35.15 billion, higher than JPMorgan’s estimate, reaching $3.48 billion, with a consensus of $3.421 billion. Despite the decline in production of automobiles year-on-year, the company successfully grew organic sales, mainly due to a 47% increase in sales of electricity products. Additionally, the company highlighted the management’s decision to withdraw from the fee business due to the difficult market conditions in North America and Europe. This strategic move is expected to reduce sales by $30 million in 2025, but increase EBIT by $15 million in 2026. Borgwarner Inc. (NYSE:BWA) also plans to consolidate its battery system business into a facility. This is expected to help the company save about $10 million in 2025 and $20 million in 2026. These strategic actions, coupled with strong cost control and execution, are expected to help offset the reduction of industry production and timing issues due to tariffs. As a result, JPMorgan Chase now expects the company's EBIT to reach $1.36 billion in 2025, up from its previous forecast of $1.29 billion, while $1.4 billion in 2026 is an increase from the previous $1.35 billion.
Overall, BWA Ranked first On the list of small electric car stocks we buy now. Although we acknowledge that the potential of BWA is an investment, our belief lies in the belief that certain AI stocks provide higher returns on a shorter time frame and perform within a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than BWA but have less than 5 times its earnings, check out our report Cheapest AI stocks.
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Disclosure: None. This article was originally published in Internal monkey.