Electric Vehicle Parts Giant Loses Over $1 Billion in a Day

BorgWarner Inc. (NYSE: BWA) saw its shares tumble 8% to close at $62 on the New York Stock Exchange, wiping out approximately $950 million in market value in a single day. The company’s market capitalization now stands at about $12.7 billion. After more than doubling over the past year and approaching a 52-week high, the stock faced headwinds from an overheated valuation and profit-taking.

On June 13, Chief Executive Officer Joseph Fadool sold 29,000 shares of BorgWarner stock for roughly $1.95 million, with sales executed at around $67 per share, according to a regulatory filing.

In its first-quarter earnings released last week, BorgWarner reported earnings per share of $1.24 and revenues of approximately $3.5 billion, slightly surpassing market expectations. The company reaffirmed its fiscal 2026 EPS guidance of $5.00 to $5.20 and restated its dividend policy. Nevertheless, analysts continue to highlight the stock’s already high valuation.

Headquartered in Auburn Hills, Michigan, BorgWarner is a global supplier of automotive powertrain and electrification components, rapidly shifting its portfolio from internal combustion engine parts to electric vehicle drivetrains and battery systems. In its 2025 results announcement, the firm disclosed orders for turbine generator systems for data centers, signaling an expansion into the power and infrastructure sector beyond traditional automotive components. This strategic pivot has fueled optimism around AI infrastructure demand, leading investors to reassess BorgWarner as a growth stock.