Investors should possibly be looking under the radar for electric vehicle games in the coming year, say two traders.
With popular stocks like Tesla and Nikola “We’re trying to play around the edges,” Nancy Tengler of Laffer Tengler Investments told CNBC “Trading nation” on Thursday.
“There are two ways for investors to nibble on the sides of the electric vehicle market,” said the company’s chief investment officer. “One is Borgwarner. “
Borgwarner, a $ 10.5 billion auto parts maker, is well on its way to delivering around 30% of powertrains or electric motors to the electric vehicle industry by 2023, Tengler said. It has also lagged the market this year, up less than 13% and trading at a relatively cheap price-to-earnings-ratio of 11, she said.
“The second way is copper, maybe a name like Freeport-McMoRan, some of the miners who will be supplying the EV manufacturers, “said Tengler.
A third tangential market could see a big reversal in 2022, said Quint Tatro, chief investment officer of Joule Financial, in the same interview.
Charging station stocks flash and Charging point could make a huge profit from President Joe Biden’s infrastructure plan of roughly $ 7.5 billion allocated to the industry, Tatro said.
Blink and ChargePoint stocks are down 33% and 52%, respectively, since the start of the year.
“These are stocks that we believe will experience some tax losses in the New Year, and I think these will be interesting trading opportunities early in January,” said Tatro.
