What’s the most attractive electric vehicle stock right now for investors?
Seeking Alpha analysts Dair Sansyzbayev and Julian Lin weigh in.
Dair Sansyzbayev: I believe the most attractive EV stock at the moment is Chinese giant BYD (BYDDF) (BYDDY), the global EV leader volume-wise. The company has a well-diversified portfolio of EV models, particularly in cheaper segments, which is a great strategic advantage over its main rival, Tesla (TSLA).
In a capital-intensive industry like automotive, companies usually benefit from economies of scale, which means that with increasing volumes, BYD is likely to deliver profitability improvements. The company is also likely to continue its aggressive expansion in Europe due to the current geopolitical landscape.
Julian Lin: I’d like to recommend a “sticks and shovels” pick in the EV space in BorgWarner (BWA). Unlike many of the publicly traded EV companies, BWA is profitable, returning cash to shareholders, and reasonably valued. I expect the stock to re-rate as it focuses more and more on the EV sector.