BorgWarner, Amphenol: How Is Our EV Supplier Stocks Theme Faring?

BorgWarner, Amphenol: How Is Our EV Supplier Stocks Theme Faring?

Our theme of Electric Vehicle Component Supplier Stocks has done well this year, rising by about 17% year-to-date, compared to the S&P 500 which is up by about 16% over the same period. The theme has also considerably outperformed EV OEM stocks, such as Tesla and Nio, which remain down this year so far. That said, the EV market is clearly gaining traction following the Covid-19 related lockdowns, with manufacturers across the board reporting solid delivery figures for recent quarters. Tesla, for instance, delivered a record 201, 250 cars in Q2, up by about 2. 3x year-over-year, while Nio also more than doubled sales to about 22, 000 units. Even mainstream automakers such as Nissan and Chevrolet have seen a rebound in their EV sales, as they commit to investing significantly in their electric roadmaps. This should bode well for the suppliers in our theme. Within our theme, BorgWarner, a company that sells electrical products such as inverters, which are key to making drivetrains for electric vehicles, has been the strongest performer, with its stock rising by about 24% year-to-date, driven by its Q1 earnings beat and a stronger outlook for 2021. On the other side, Amphenol, a company that