Three unconventional ways to trade the rise of electric vehicles in 2022

Investors may want to keep an eye on the development of electric vehicles in the coming year, according to two traders.

With popular stocks such as Tesla and Nikola reaching exorbitant value, “we’re trying to play on the edge,” Nancy Tengler of Laffer Tengler Investments told CNBC Trading Nation on Thursday.

“Investors have two ways to get around the electric vehicle market,” said the firm’s chief investment officer. “One – Borgvarner”.

According to Tengler, a $ 10.5 billion auto parts maker, Borgwarner plans to supply about 30% of the powertrain or electric motors for electric vehicles by 2023. It also lags behind the market this year, growing less than 13%, and is trading at a relatively cheap forward price-earnings ratio of 11, she said.

“The second route is copper, perhaps a name like Freeport-McMoRan, some of the mining companies that will supply electricity to EV makers,” Tengler said.

A third indirect market could see a big reversal in 2022, Joule Financial CFO Quint Tatro said in the same interview.

Inventories of Blink and ChargePoint charging stations could make a huge profit, with President Joe Biden’s roughly $ 7.5 billion in infrastructure set aside for the industry, Tatro said.

Blink and ChargePoint are down 33% and 52%, respectively, since the beginning of the year.

“These are stocks that we think will sell at a tax loss in the new year, and I think this will be an interesting trading opportunity when we enter January,” Tatro said.

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