- American Axle generated meaningfully better revenue and profits than expected in the second quarter, and the company is well-placed to leverage eventually inventory-rebuilding of SUVs and pickups.
- The key debate still centers on AXL's position in electrification; I don't find the eDrive offering that exciting, but there are multiple components that AXL can sell to EV OEMs.
- American Axle shares already seem to be pricing in a bearish case for the company's future, leaving more room for execution-driven upside as component shortages ease in 2022.
For further details see:
American Axle - Ample Risks, But Maybe Ample Rewards Too