New York — As pure-play electric vehicle (EV) manufacturers command steep valuations, investment strategists are pointing investors toward less conspicuous, "around the edges" opportunities in the sector for the year ahead. The focus is shifting to critical suppliers and infrastructure enablers that may offer more attractive risk-reward profiles.

Nancy Tengler, Chief Investment Officer at Laffer Tengler Investments, highlighted two tangential approaches on CNBC's "Trading Nation." "We’re trying to play around the edges," she said, suggesting investors look past the most prominent automaker names.

Playing the Enablers: Powertrains and Raw Materials

Tengler's first pick is BorgWarner, a traditional auto parts supplier undergoing a major strategic pivot toward electrification. The company is on track to supply about 30% of EV powertrains by 2027, positioning it as a crucial beneficiary of the industry's growth regardless of which car brand wins the high-stakes race for consumer adoption. Its relatively low forward P/E ratio of around 11 adds a value angle.

Her second suggestion is exposure to copper via miners like Freeport-McMoRan. EVs use significantly more copper than internal combustion engine vehicles, making the metal a fundamental raw material for the entire industry's expansion. This play leverages the broader commodity cycle within the EV competitive ecosystem.

Betting on the Charging Infrastructure Buildout

Quint Tatro, Chief Investment Officer at Joule Financial, identified a third opportunity: charging infrastructure stocks like Blink Charging and ChargePoint. Both stocks have been battered this year, down 33% and 52% respectively, which Tatro attributes partly to year-end tax-loss selling.

He believes they are poised for a potential reversal, fueled by the impending rollout of approximately $7.5 billion in federal funding from the Biden administration's infrastructure plan earmarked for the EV charging network. 

A Shift in Investment Philosophy

The analysts' consensus underscores a pragmatic investment philosophy for the next phase of the EV revolution. Instead of betting solely on the carmakers themselves, which face immense execution risk and valuation pressure, investors can target the essential "picks and shovels" providers—the companies supplying the vital components, materials, and infrastructure that the entire industry depends on to grow.