My Top Electric Car Stock to Buy and Hold
Wall Street and individual investors alike have an insatiable appetite for anything electric vehicle (EV)-related. Even the most speculative EV companies with long-shot odds of becoming lasting companies are getting multi-billion-dollar valuations. Automotive manufacturing has, historically, been a brutal industry for investors. While electric vehicles may benefit from capturing market share and see outsized growth in the short run, competition in this industry is getting fiercer by the day.
Rather than trying to pick which of these vehicle builders is going to win the horse race, there is much more value in companies providing the components to a wide variety of manufacturers all at once. One that stands out today as a likely behind-the-scenes winner in EVs is BorgWarner (NYSE: BWA). Here's why its corporate turnaround could make it a top buy-and-hold electric vehicle stock.
Most of us can rattle off several vehicle brands off the top of our head, but not many of us can name the manufacturers of the components in those vehicles. The 140-year-old company manufactures several drivetrain components. Its bread-and-butter business for decades has been in fuel injectors, turbochargers, and other engine components that are centered around the air intake and exhaust of engines and are prominent features in commercial and high-performance engines. Ford and Volkswagen AG are its largest customers and, combined, represent about 19% of annual sales.
Source Fool.com
