12 Small Cap EV Stocks to Buy Now

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1. BorgWarner Inc. (NYSE:BWA)

Market Capitalization: $6.65 Billion

Number of Hedge Fund Holders: 43

BorgWarner Inc. (NYSE:BWA) is a global supplier of automotive and e-mobility solutions. The company provides essential components for internal combustion, hybrid, and electric vehicles. It designs, manufactures, and sells products mainly to original equipment manufacturers (OEMs). BorgWarner Inc. (NYSE:BWA) ranks among the best EV stocks to buy now.

On May 8, JPMorgan increased its price target on BorgWarner Inc. (NYSE:BWA) from $42 to $43 and maintained an “Overweight” rating. This decision follows the company’s strong Q1 2025 results, with both revenue and earnings before interest and taxes (EBIT) surpassing JPMorgan’s estimates and Bloomberg’s consensus. BorgWarner Inc. (NYSE:BWA) reported revenue of $3.515 billion, above JPMorgan’s estimate of $3.480 billion and the consensus of $3.421 billion. Even though vehicle production declined year-over-year, the company successfully grew its organic sales, mainly because of a 47% surge in electric product sales. Additionally, the firm highlighted the management’s decision to exit the charging business because of tough market conditions in North America and Europe. This strategic move is expected to reduce sales by $30 million but improve EBIT by $15 million in 2025 and by $30 million in 2026. BorgWarner Inc. (NYSE:BWA) also plans to consolidate its battery systems business into one facility. This is expected to help the company save about $10 million in 2025 and $20 million in 2026. These strategic actions, combined with strong cost control and execution, are expected to help offset lower industry production and timing issues because of tariffs. As a result, JPMorgan now expects the company’s EBIT to reach $1.36 billion in 2025, up from its previous forecast of $1.29 billion, and $1.4 billion in 2026, an increase from the previous $1.35 billion.

Overall, BWA ranks first among the 12 small-cap EV stocks to buy now. While we acknowledge the potential of small-cap EV stocks, 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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