Three unique methods to profit from the rise of electric automobiles in 2022
Two traders suggest that investors explore under the radar for electric vehicle plays in the coming year.
“We’re trying to play around the edges,” Nancy Tengler of Laffer Tengler Investments told bitcoinfunda.com “Trading Nation” on Thursday, as popular stocks like Tesla and Nikola reach excessive values.
“Investors can nibble round the rims of the EV marketplace in ways,” the firm’s leader funding officer explained. “Borgwarner is certainly considered one among them.”
Borgwarner, a $10.5 billion auto components company, is on track to supply roughly 30% of the EV industry’s powertrains, or electric motors, by 2023, according to Tengler. It’s also trailing the market this year, up less than 13%, and trades at a cheap forward price-to-earnings ratio of 11, according to her.
“The second way is copper, and some of the miners that will be supplying the supply to the EV manufactures are Freeport-McMoRan,” Tengler said.
In the same interview, Joule Financial Chief Investment Officer Quint Tatro stated that a third tangential market might witness a significant reversal in 2022.
According to Tatro, the roughly $7.5 billion in President Joe Biden’s infrastructure plan assigned to the business may provide a major windfall for charging-station companies Blink and ChargePoint.
Blink and ChargePoint have lost 33% and 52% of their value year to date, respectively.
“These are equities that we accept as true with may have a few tax-loss promoting withinside the new year, and I agree with those could be interesting buying and selling possibilities as we circulate into January,” Tatro said.