### BorgWarner Inc. (NYSE:BWA): A Potential Leader Among Small-Cap EV Stocks
In our latest analysis on the **12 Small Cap EV Stocks to Buy Now**, we take a closer look at BorgWarner Inc. (NYSE:BWA) and its standing in this competitive landscape. As electric vehicles (EVs) continue to gain traction—accounting for 8.1% of the 16 million vehicles sold in the U.S. in 2024, according to Cox Automotive—BorgWarner’s position as a key player in the automotive industry makes it a stock to consider.
### Market Dynamics and Cadillac’s Strategic Shift
Despite a slower-than-anticipated adoption of EVs, brands like Cadillac are not standing still. Cadillac has announced plans to expand its electric lineup to five models by 2025, including the Escalade IQ and the luxury Celestiq. They aim for EVs to represent approximately 30% to 35% of their sales next year. This move illustrates a broader trend in the automotive industry: while several manufacturers are reevaluating their timelines for transitioning to all-electric lineups, consumer demand remains crucial in shaping these strategic decisions.
### Why Hedge Funds Pay Attention
Understanding the strategies of top hedge funds can provide valuable insights. Our research shows that mirroring the top stock picks of leading hedge funds often results in superior market performance. Our quarterly newsletter has achieved an impressive **373.4% return since May 2014**, beating its benchmark by 218 percentage points. This data-driven approach underscores the significance of hedge fund sentiment in shaping investment decisions.
### BorgWarner’s Strong Financial Performance
BorgWarner Inc. boasts a market capitalization of **$6.65 billion** and is held by **43 hedge funds**—a strong endorsement of its potential. Recently, JPMorgan raised its price target for BorgWarner from $42 to $43, reaffirming its “Overweight” rating after the company surpassed expectations for Q1 2025. With revenues hitting **$3.515 billion**, primarily driven by a **47% surge in electric product sales**, BorgWarner is steering its focus towards future growth.
The firm is strategically exiting its charging business in response to challenging market conditions, which is expected to reduce sales by $30 million but enhance EBIT margins significantly. A planned consolidation of its battery systems business is projected to yield an additional $10 million in savings in 2025 alone.
### What Sets BorgWarner Apart
BorgWarner ranks **1st** on our list of promising small-cap EV stocks, but it’s essential to note that some investors might find even greater opportunities in the growing field of AI stocks. For instance, while major AI stocks have seen declines, a lesser-known AI stock has managed a steady rise. This stock trades at less than five times its earnings, presenting a compelling value proposition for investors seeking high returns in a shorter timeframe.
### Conclusion
As we dive deeper into the future of electric vehicles and associated technologies, staying informed on stocks like BorgWarner is critical. While BWA shows strong potential, it’s also vital to explore emerging opportunities in sectors like AI that could yield even greater benefits.
#### Read on to discover more insights:
– [20 Best AI Stocks To Buy Now](#)
– [30 Best Stocks to Buy Now According to Billionaires](#)
*Disclosure: None. This article is originally published at Insider Monkey.*