In this article, we explore the 10 Best EV Penny Stocks to Buy According to Hedge Funds.

Driven by surging demand and cleaner ambitions, global EV sales are set to race past 20 million units in 2025, a 25% leap from 2024, according to the report by IEA. In Q1 2025 alone, over 4 million electric cars were sold, marking a 35% year-over-year jump and outpacing growth seen in the first quarters of the previous two years. China led the surge, contributing around 60% of total sales, with over 1 million more EVs sold globally compared to Q1 2024.

JPMorgan, in an analysis published on July 21, 2025, presents an optimistic view of the electric vehicle (EV) market. The short of it is that the market is booming. According to the report, EVs have been present on American roads for nearly two decades, but the bank asserts that the most pronounced acceleration in adoption has only occurred recently. The report cites data that suggests global EV sales rose 20% in 2024 and jumped 35% year-over-year in Q1 2025, signaling continued momentum.

Market performance data supports this view. The Bloomberg Electric Vehicles Total Return Index, which tracks firms with significant EV exposure, is up 15.98% year-to-date as of August 7, 2025. Likewise, the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index has gained 11.26% over the same period, outperforming the S&P 500’s 7.88% rise.

Hedge funds appear to be taking notice. In Q1 2025, Bridgewater Associates made a $62 million bet on a U.S.-based EV company. Citadel Advisors also initiated new positions in two Chinese EV manufacturers during the quarter. With that backdrop, this article highlights 10 EV penny stocks that hedge funds are backing in 2025.

Our Methodology

To compile the list of the 10 Best EV Penny Stocks to Buy According to Hedge Funds, we began by identifying EV companies trading at or below $5 per share (as of August 7, 2025). We used a combination of internal rankings, financial media reports, EV-focused ETFs, and other publicly available sources to generate an initial list of penny stocks operating in the EV space. Next, we evaluated hedge fund interest in each stock using data from Insider Monkey’s Q1 2025 database. We then ranked the stocks based on the number of hedge funds that reported a position in each company in their Q1 2025 13F filings. The final list includes the 10 EV penny stocks with the highest hedge fund ownership, sorted in ascending order by the number of hedge funds holding each stock.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Best EV Penny Stocks to Buy According to Hedge Funds

10. Workhorse Group Inc. (NASDAQ:WKHS)

Number of Hedge Fund Holders: 1

Share Price: $1.73

Workhorse Group Inc. (NASDAQ:WKHS) is one of the best EV penny stocks to buy according to hedge funds. On August 4, the company announced it had entered a new exclusivity agreement with a privately held U.S.-based manufacturer of electric commercial vehicles in connection with a potential transaction. The two companies are discussing a possible deal where the manufacturer would merge into a new subsidiary of Workhorse. In return, the manufacturer would receive newly issued shares of Workhorse common stock.

Workhorse previously entered a 14-day exclusivity agreement from July 14 to July 28, 2025, restricting negotiations with other parties, except under a “fiduciary out.” A new seven-day agreement reinstates those terms. The company clarified this update isn’t an offer to sell securities or solicit votes, and cautioned that ongoing talks may not lead to a final deal or maintain current terms.

Workhorse Group Inc. (NASDAQ:WKHS) is an American electric vehicle manufacturer specializing in commercial delivery vans and trucks. Its product lineup includes the W4 CC and W750 electric vans, designed for last-mile logistics and fleet operations. Workhorse operates manufacturing facilities in Ohio and leverages strategic partnerships to enhance vehicle performance and distribution.

9. Kandi Technologies Group, Inc. (NASDAQ:KNDI)

Number of Hedge Fund Holders: 3

Share Price: $1.12

Kandi Technologies Group, Inc. (NASDAQ:KNDI) is one of the best EV penny stocks to buy according to hedge funds. On August 1, the company said it successfully showcased its AI and robotics solutions at the 2025 World Artificial Intelligence Conference (WAIC) held in Shanghai. In the announcement, Kandi highlighted its strategic collaboration with Deep Robotics, the company’s partner, by staging a live demonstration of industry-grade quadruped robots performing security and inspection tasks.

The Kandi-Deep Robotics collaboration, announced in June 2025, focuses on developing quadruped security inspection robots and smart sports technology. The target market is North American. The technology uses Kandi’s proprietary cloud-edge-device intelligent architecture to meet specific, scenario-driven needs.

Kandi also stated that it is exploring a joint research initiative with Zhejiang University. This initiative targets advancements in AI algorithms, environmental sensing, and motion control technologies. The goal is to accelerate innovation and commercialization of AI-driven robotic applications.

Kandi Technologies Group, Inc. (NASDAQ:KNDI) is a Chinese EV manufacturer. It manufactures off-road EV products like all-terrain vehicles, utility vehicles, and electric scooters. It also produces EV parts such as battery packs and smart battery swap systems. Kandi operates primarily in China but has expanded into the US market, recently launching its first locally produced EV.