Stellantis announced a massive $26 billion charge after overinvesting in electric vehicles, signaling a major industry correction. This strategic pivot towards hybrid and traditional combustion engines creates opportunities for companies supplying parts and materials for these more established technologies.
Published on February 9
With $140 billion in collective EV losses across major automakers, the industry is pivoting back to proven technologies. This creates fresh opportunities in traditional automotive supply chains.
As automakers scale back EV-only strategies, suppliers of engines, powertrains, and hybrid components are seeing renewed interest from manufacturers rebalancing their production roadmaps.
These companies were handpicked for their direct exposure to the automotive industry's more pragmatic approach to the energy transition, focusing on established technologies with enduring demand.
The automotive industry is experiencing a major correction after overinvesting in electric vehicles. With companies like Stellantis writing down $26 billion and the industry collectively reporting $140 billion in EV-related losses, there's a clear pivot back to hybrid and traditional combustion technologies. This creates opportunities for companies that supply the established automotive supply chain.
This group focuses on companies that manufacture essential components for internal combustion engines and hybrid vehicles - from engines and powertrains to exhaust systems and aftermarket parts. These are established technologies with proven demand, positioned to benefit from automakers' more pragmatic approach to the energy transition.
Each company was handpicked by professional analysts for their direct exposure to traditional automotive technologies. They represent the backbone of the automotive supply chain - suppliers of engines, powertrains, cooling systems, and replacement parts that will see renewed demand as automakers rebalance their production strategies.
The basket's total market capitalisation is $9.02M (units as provided). It is dominated by a single largeтАСcap constituent, so performance is likely anchored by that large holding and reflects a concentrated, largeтАСcap profile.
SUP: $9.02M
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Here are a few of the assets in this group. Create an account to unlock the full list.
HOLLEY INC
HLLY
Current Price
$2.90
Holley is a leading manufacturer of high-performance automotive products for combustion engines, including fuel injection systems, carburettors, and e...
Holley is a leading manufacturer of high-performance automotive products for combustion engines, including fuel injection systems, carburettors, and exhaust systems.
Superior Industries International Inc
SUP
Current Price
$0.50
As a leading manufacturer of aluminium wheels, the company supplies a powertrain-agnostic component essential for all vehicle types, including hybrids...
As a leading manufacturer of aluminium wheels, the company supplies a powertrain-agnostic component essential for all vehicle types, including hybrids and traditional cars.
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On average, analysts expect assets in this group to grow 1081.62% over the next year.
2 of 2 assets in this group are rated Buy by professional analysts.
Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.
If you invested across these assets:
In 12 months it might be worth:
+1081.62%
