- ChargePoint (NYSE:CHPT) — EV infrastructure leader that boasts impressive partnerships and widespread utility
- QuantumScape (NYSE:QS) — Innovative battery producer that has seen a spike in demand amid geopolitical turbulence
- BorgWarner (NYSE:BWA) — This dynamic auto supplier has flown under the radar as it expands into multiple EV-related industries
The war in Ukraine is dragging on, months after Russia’s initial invasion. Temperatures are also heating up as summer approaches, but energy prices aren’t cooling off. Quite the opposite, in fact.
According to a recent study from the World Bank, the global energy crisis won’t be over soon. Data indicate that energy prices will rise by more than 50% throughout 2022. World Bank Vice President Indermit Gill describes this as the “largest commodity shock” that the world has seen since the 1970s. The prospect of gas prices rising even further is prompting more consumers to make the switch to an electric vehicle (EV), as indicated by rising sales. With this in mind, EV stocks are on the rise.
While oil prices are currently down from the highs they reached in March 2022, they remain elevated. On top of that, oil supplies remain tight. Meanwhile, tensions are rising throughout the European Union (EU) as Russia cuts off Poland and Bulgaria from its gas supplies. With no end to the energy crisis in sight, investors should consider the alternative energy sector.
Even in the current market slump, Tesla (NASDAQ:TSLA) has continued to dominate. But what are some EV stocks to buy that might be flying under Wall Street’s radar? Let’s take an in-depth look at some lesser-known plays.
EV Stocks to Buy: ChargePoint Holdings (CHPT)
EV producers have been rocked by supply chain imbalances lately. However, electric vehicle demand is still rising throughout the U.S. and with it, the need for charging infrastructure.
The current EV boom, spurred by the energy crisis, has ushered in a separate infrastructure revolution. And at the front of it is ChargePoint Holdings. While Tesla produces charging stations for its own vehicles, new EV producers are working overtime to pump new vehicles into the market. This positions ChargePoint, a leader in its field, to ride the EV boom straight to the top.
The company has a significant presence in Europe as well as the U.S. This positions it well to cash in on the EV boom on both continents. In the past year, it has announced partnerships with Goldman Sachs (NYSE:GS) and Toyota (NYSE:TM) and extended a collaboration with Volvo (OTCMKTS:VLVLY). As InvestorPlace contributor Larry Ramer notes, ChargePoint “expects its revenue to double, give or take, during its current fiscal year.” The company has shown investors that it is ready to keep pace as the EV revolution accelerates.
Another fundamental component of the EV revolution is the batteries that keep cars on the road. The supply chain crisis has created a difficult industry landscape for battery makers, but experts have kept their eyes on this lesser-known name.
QuantumScape produces solid-state batteries (SSBs), exactly the type of product that has the potential to revolutionize how EVs are charged. “QuantumScape stock offers a great way to play the solid-state battery revolution,” states InvestorPlace analyst Luke Lango, who sees QS as having “10X upside potential from current levels.” Lango also calls attention to the applications of solid-state battery technology for devices such as smartphones and personal computers.
Earlier this month, Deutsche Bank analyst Emmanuel Rosner issued a positive rating for QS stock, sending shares up. More recently, Cowen analyst Gabe Daoud Jr. maintained an “outperform” rating on shares. While other analysts have expressed concerns regarding QuantumScape’s ability to scale production, the importance of its tech for the EV revolution cannot be overstated.
As InvestorPlace contributor Josh Enomoto notes, SSBs have the potential to change the EV sector with “high performance, high range and cheaper power units.” The combination of climate concerns and geopolitical tensions will allow QS to be a winner among EV stocks.
EV Stocks to Buy: BorgWarner (BWA)
This auto parts producer isn’t a name that often comes up during discussions of EV stocks. That doesn’t mean it shouldn’t.
Based in Michigan, BorgWarner is a good example of a company that adapted to a changing industry landscape. Once a supplier of parts for Motor City legacies, it has shifted focus to “accelerating the world’s transition to eMobility.” The company produces not only EV chargers, but also battery systems, controllers and transmissions. The list of EV components doesn’t even stop there. BorgWarner still supplies parts for gas-powered vehicles, but it is clearly focused on electric vehicles.
In summer 2021, the company reached an agreement with Hyundai (OTCMTKS:HYMTF) to supply its integrated drive module for the auto giant’s upcoming EV line, slated to start production in 2023. Earlier this year, it announced the acquisition of Santroll Automotive Components’ light vehicle eMotor business, expected to help boost its vertical integration and scale production. Both catalysts will help make BWA a name to watch among EV stocks as 2023 draws nearer.
The dynamic company has its feet in several areas that are crucial to the EV revolution and will only grow throughout the coming year.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.