We recently compiled a list of the 15 Best EV Stocks To Buy According to Billionaires. In this article, we are going to take a look at where BorgWarner Inc. (NYSE:BWA) stands against the other EV stocks.
The year 2024 marked a significant milestone for environmentally friendly vehicles in the US. On January 16, 2025, CNBC reported that for the first time, sales of all-electric vehicles and hybrid models made up 20% of all new car and truck sales. Motor Intelligence reported that over 3.2 million electrified vehicles were sold last year. This included 1.9 million hybrid vehicles and 1.3 all-electric vehicles.
Traditional vehicles with gas or diesel engines continued to dominate the market, accounting for 79.8% of sales. However, this marked the first time their share fell below 80% in modern automotive history.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 10 High Growth Energy Stocks To Invest In.
In the US, the EV market is very competitive. Out of 68 mainstream electric models tracked by Kelley Blue Book, 24 models posted an increase in sales compared to the previous year while 27 models experienced a decrease in sales volume. Additionally, 17 new models were introduced to the market.
There is not enough clarity as to how sales of all-electric and hybrid electric vehicles will perform in 2025. This uncertainty is partly due to pending potential actions by the Trump administration. However, Cox Automotive expects that 2025 will set another record for EV sales, with EVs accounting for about 10% of new vehicle sales. Including hybrids, Cox Automotive expects one out of every four vehicles sold to be electrified in 2025.
Methodology
To compile our list of the 15 best EV stocks to buy according to billionaires, we looked for the biggest EV companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best EV stocks. Next, we focused on the top 10 EV stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 15 best EV stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Workers assembling a state-of-the-art engine in a modern auto factory.
BorgWarner Inc. (NYSE:BWA)
Number of Billionaire Investors: 10
Number of Hedge Fund Holders: 43
BorgWarner Inc. (NYSE:BWA) is an American global company that designs and manufactures automotive and e-mobility systems. As a leader in clean and efficient technology, the company provides essential components for internal combustion, hybrid, and electric vehicles. The company is focused on expanding its presence in the EV market through innovative technology. BorgWarner Inc. (NYSE:BWA) has secured multiple contracts for its High Voltage Coolant Heater (HVCH) technology in major Asian markets. A leading automaker in China chose the company’s HVCH for a fully electric SUV, with production expected to start in Q2 2025. In Korea, BorgWarner’s (NYSE:BWA) HVCH technology will be used in an electric pickup truck. In Japan, HVCH will be utilized in a battery-electric vehicle that is set to begin production in 2028.
The company continues to secure multiple new business awards that supports its future long-term profitable growth. In February 2025, BorgWarner Inc. (NYSE:BWA) continued to grow its new energy vehicle motor business by securing 4 new projects with 3 major Chinese brands. These projects include supplying 400V high-voltage hairpin (HVH) motors for a 200kW hybrid rear-drive platform, with production planned for August 2025, and motors for a 150kW pure electric platform scheduled for mass production in March 2026.
Overall, BWA ranks 7th on our list of the cheap tech stocks to buy according to hedge funds. While we acknowledge the potential of BWA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BWA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
