In this article, we will take a look at some of the best electric vehicle penny stocks that yield impressive upside potential. On April 2, CNBC reported on how the Iran War has affected the electric vehicle market, citing rising fuel prices due to ongoing disruptions to oil exports through the Strait of Hormuz.
The crucial thing here is that the interest in EVs skyrocketed after the outbreak of the war, with Autotrader registering 28% more queries regarding new vehicles, and Octopus Electric Vehicles recording 36% more queries related to vehicle leasing. Meanwhile, major car companies such as Ford Motor Co., General Motors Co., and Stellantis N.V. decided to scrap their aggressive EV strategy and record huge losses.
The transition away from traditional fuel-powered engines will happen gradually rather than suddenly. Steffen Michulski from JATO Dynamics stated that inflation has impacted the price of gasoline-fueled cars, thus favoring EVs for long-distance travelers. However, certain challenges will persist, such as the risk associated with electricity costs, improvements in combustion engine technology, and the uncertainties in the economy. With that background, let’s explore our 10 Best EV Penny Stocks to Buy.
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Our Methodology
To identify relevant stocks for this article, we screened for U.S.-listed electric vehicle companies with market capitalizations above $200 million and share prices below $5. Also, we only shortlisted stocks with at least 20% upside potential, according to consensus, as of the April 24 close. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Solid Power Inc. (NASDAQ:SLDP)
Solid Power Inc. (NASDAQ:SLDP) is one of the 10 best EV penny stocks to buy.
As of the close of play on April 24, Solid Power Inc. (NASDAQ:SLDP) carried a moderately bullish consensus sentiment. The stock received coverage from 2 analysts, both of whom assigned Buy ratings. With a median 1-year price target of $7, it currently offers an impressive upside potential in excess of 90%. This makes it one of the top penny stocks to look at within the electric vehicle segment.
Recent analyst ratings support a bullish argument for this stock. Back on March 16, Amit Dayal from H.C. Wainwright assigned a Buy rating to Solid Power Inc. (NASDAQ:SLDP). The analyst also projected a $7 target price for the stock, highlighting the company’s strategic focus on commercializing electrolytes for next-generation solid-state battery designs.
The analyst also noted that the company’s proprietary technology continues to be quite novel. The main goal of this fundamental technology is to significantly improve the overall performance of battery cells. Moreover, it would also enhance the energy density, operational safety, and overall efficiency measures.
Solid Power Inc. (NASDAQ:SLDP) is a developer of solid-state battery solutions for the electric vehicle industry and mobile power markets in the United States. It is also engaged in the development of sulfide-based solid electrolytes, which are projected to replace the flammable liquid electrolyte in a conventional lithium-ion battery.
