Guinness Sustainable Energy Fund on Sensata Technologies
Thesis
The fund owns Sensata Technologies as a component supplier to the growing electric and autonomous vehicle industry. The managers expect the amount of electronics in electric vehicles to keep increasing, creating higher content per vehicle for suppliers such as Sensata. This gives the position a structural growth driver tied to transport electrification even if total vehicle volumes grow more slowly.
“should benefit from the ever-increasing amount of electronics present in electric vehicles”
Key risks
- EV adoption can be slower than expected
- Automotive demand can weaken cyclically