WOLF - BorgWarner targets $4.5B in EV revenue by 2025 invests $500M in Wolfspeed

BorgWarner Inc. ( NYSE: BWA ) said it aims to reach $4.5B in EV revenue from less than $350M in 2021 in an announcement on Wednesday.

The ambitious aim was outlined alongside an announcement of a $500M investment in semiconductor company Wolfspeed Inc. ( NYSE: WOLF ) that the company believes will aid in achieving its goal. Under the terms of the agreement, BorgWarner will be entitled to purchase up to $650M of devices annually as it continues to grow and its requirements increase

"Silicon carbide-based power electronics play an increasingly important role for our customers as our electric vehicle business continues to accelerate," BorgWarner CEO Frédéric Lissalde explained. “We believe this agreement helps ensure that BorgWarner will have a reliable supply of high-quality silicon carbide devices, which are significant to the company's inverter growth plans.”

Wolfspeed announced it intends to offer $1.3B of convertible bonds due 2029 in a private offering. BorgWarner is participating in the financing transaction via the $500M investment.

Wolfspeed shares fell 6.19% in premarket trading after the announcement .

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