A global race to beef up advanced chip packaging for AI is quietly changing the game for electric vehicles too. More powerful processors need more batteries and smarter power systems, which keeps pulling attention back to companies building electric cars, packs and components. That shift creates fresh openings for long term investors. This article breaks down three EV related stocks from our screener that illustrate how different parts of this ecosystem can benefit.
The three stocks below are just a starting sample. The full screen surfaced 44 more EV related companies with equally detailed stories that are not covered here.
Head straight into the EV Stocks screener to analyze, filter, and identify the highest conviction electric vehicle and battery opportunities for your watchlist.
Ford Motor (F)
Overview:Ford Motor develops electric vehicles through its Ford Model e segment alongside a broad mix of combustion, hybrid, commercial and financing operations worldwide.
Operations:Ford Motor generates about US$145b from Ford Blue, US$65b from Ford Pro, US$13.7b from Ford Credit and US$5.1b from Ford Model e. Group wide eliminations reduce the consolidated total.
Market Cap:US$50.6b
Ford Motor matters for this EV Stocks screener because Ford Model e puts battery powered vehicles, charging and software right alongside its truck and SUV heavyweights.
"Ford Motor is building a larger base of high margin software subscriptions, with about 1.6 million paid subscriptions across the group, blended ARPU of around US$14 per month and contribution margins above 50%, which can increase recurring revenue and support earnings resilience if subscriber numbers and ARPU continue to grow."
What happens to Ford Motor's EV economics hinges on one unresolved cost pressure that could meaningfully sway margins and cash generation.
If that cost swing is on your mind, read the full narrative for Ford Motor to see how Ford Motor's EV push could reshape cash flow and pricing power.
Schaeffler (XTRA:SHA0)
Overview:Schaeffler supplies electric powertrain systems and battery related components through its E Mobility division alongside broader automotive and industrial parts.
Market Cap:€5.2b
Schaeffler matters for the EV Stocks theme because its E Mobility arm feeds directly into the hardware that makes electric drivetrains and batteries work.
"Execution on restructuring and workforce programs that have already delivered more than the initially targeted EBIT savings with lower one off costs, along with over 6,000 headcount reductions and additional partial retirement agreements funded from prior provision undershoots, points to a structurally leaner Schaeffler cost base that can support higher net margins and earnings over time."
The potential for Schaeffler's EV exposure depends on how a relatively quiet shift in its electrification mix ultimately affects margins and cash generation.
That quiet shift could matter a lot, so read the full narrative for Schaeffler to see whether Schaeffler's electrification mix is masking risk or accelerating an underappreciated upside.
DENSO (TSE:6902)
Overview:DENSO manufactures automotive parts worldwide, with a key role in electric vehicle powertrain components and thermal management systems.
Operations:DENSO generates about ¥4.61t from Japan, ¥2.02t from North America, ¥2.02t from Asia, ¥776b from Europe and ¥135b from Others, before ¥1.83t eliminations.
Market Cap:¥4.66t
DENSO provides direct exposure to EV hardware through heat pump air-conditioning and battery cooling systems, within a broader auto parts group that pays a 3.98% dividend and trades below certain cash flow estimates. The impact of shifts in EV component profitability is likely to be more significant than the effect of recent guidance headlines.
That shift in EV component profitability is the real hinge, so review the analysis report for DENSO to see where DENSO's cash generation and pricing power could be heading.
Seeking Fresh Alternatives Beyond EVs?
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This article is general in nature and was produced with the assistance of AI automation, based on data and analysis from Simply Wall St. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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