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.
8. VinFast Auto Ltd. (NASDAQ:VFS)
Number of Hedge Fund Holders: 8
Share Price: $3.53
VinFast Auto Ltd. (NASDAQ:VFS) is one of the best EV penny stocks to buy according to hedge funds. On July 14, Cantor Fitzgerald reiterated its “Overweight” rating on VinFast shares and maintained a $6.00 price target on the stock.
The firm cited VinFast’s stable vehicle deliveries in Vietnam for June 2025, which included 3,667 VF3, 3,060 VF5, 1,245 VF6, and 725 VF7 models, as well as 1,415 Nerio Green and 916 Herio Green commercial vehicles delivered domestically that month. For the first half of 2025, the compact models VF3 and VF5 dominated sales, with 23,083 and 21,812 units delivered, respectively. VinFast reaffirmed guidance to at least double its 2025 vehicle deliveries compared with the previous year’s 97,339 units.
Despite a concerning cash burn rate, Cantor Fitzgerald’s analysts expressed confidence in VinFast’s business model, particularly its vertical integration and focus on Vietnamese and Asian markets. These factors, the analysts stated, mitigate against external risks such as tariffs and the removal of the $7,500 US EV tax credit.
VinFast Auto Ltd. (NASDAQ:VFS) is a Vietnamese EV manufacturer that designs, develops, and sells EVs, e-scooters, and electric buses across Vietnam and the United States. The company operates through multiple segments, including Automobiles, E-scooter, Spare Parts, and Aftermarket Services. VinFast has recently expanded its US footprint by opening its first authorized dealership in California and launching locally produced EVs.
7. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)
Number of Hedge Fund Holders: 10
Share Price: $1.06
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is one of the best EV penny stocks to buy according to hedge funds. On July 14, Cantor Fitzgerald reaffirmed its “Neutral” rating on Polestar shares, despite the company reporting second-quarter 2025 delivery results that exceeded estimates. Polestar delivered 18,049 vehicles in the quarter, beating Cantor Fitzgerald’s estimate of 11,744 vehicles and up from 13,072 deliveries in Q2 2024. The company delivered 30,319 cars in the first half of 2025, a 51% increase compared to the same period in 2024.
Despite the strong delivery numbers, Cantor Fitzgerald cited Polestar’s decision to pause its 2025 financial guidance (as of May 12, 2025) due to deteriorating macroeconomic conditions and uncertainty about tariffs as a reason for maintaining a “Neutral” outlook. The analysts highlighted continuing risks, including significant capital requirements, “Material impacts from tariffs and geopolitical tensions” due to Polestar’s main manufacturing base in China, a substantial debt burden of $5.12 billion, and a negative gross profit margin of -43%.
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is a Swedish EV manufacturer. The company designs and sells premium battery-electric cars, including the Polestar 2 fastback sedan, the Polestar 3 and 4 SUVs, and the upcoming Polestar 5 grand tourer. Polestar also offers performance software upgrades, carbon credits, and vehicle leasing services.
6. Hyliion Holdings Corp. (NYSE:HYLN)
Number of Hedge Fund Holders: 11
Share Price: $1.51
Hyliion Holdings Corp. (NYSE:HYLN) is one of the best EV penny stocks to buy according to hedge funds. On July 17, the US Navy awarded Hyliion a Phase II Small Business Innovation Research (SBIR) contract worth $1.5 million. The purpose of the agreement is for Hyliion to advance development of its scalable multi-megawatt KARNO Power Module platform for shipboard and stationary military applications.
This Phase II contract follows the successful completion of Phase I, in which Hyliion completed the initial concept design and architectural planning for a naval-compliant, multi-megawatt power generator system. The Phase II project will focus on several key areas, including: development of integrated software and power electronics to manage and synchronize multiple KARNO Cores for stable, dynamic power delivery in high-demand environments; improvements to motion control and communication systems essential for scalable operation; refinement of integrated drive electronics to meet Navy requirements for size, weight, power, and cost (SWaP-C); and alignment of control schemes and system design with naval operating standards.
The program will run for 18 months and will support both shipboard and stationary defense operations. It is expected to leverage learnings relevant to Hyliion’s commercial 2MW product roadmap.
Hyliion Holdings Corp. (NYSE:HYLN), headquartered in Austin with R&D in Cincinnati, is developing clean and flexible power solutions for electric mobility. While its core technology centers on distributed generators using multiple fuel sources, the company is expanding into mobile applications, including electric vehicles and marine transport. Targeting commercial and waste management fleets, Hyliion aims to deliver practical EV power systems that offer both environmental benefits and operational efficiency. Its approach blends innovation with adaptability to meet the evolving demands of the energy and transportation sectors.
5. Lotus Technology Inc. (NASDAQ:LOT)
Number of Hedge Fund Holders: 12
Share Price: $2.08
Lotus Technology Inc. (NASDAQ:LOT) is one of the best EV penny stocks to buy according to hedge funds. On August 4, Lotus Technology Innovative Limited, a subsidiary of Lotus Technology Inc., granted a loan of up to GBP 80 million ($106 million) to Lotus Cars. The loan carries an interest rate of 8% per annum and is due for full repayment by December 31, 2025.
This financial support is part of ongoing strategies aimed at integrating and controlling Lotus UK’s manufacturing and engineering subsidiaries under Lotus Technology. Lotus Technology is also acquiring significant equity interests in Lotus UK, aiming for full integration of Lotus businesses to strengthen brand equity and operational flexibility.
Lotus Technology Inc. (NASDAQ:LOT) is an EV manufacturer that designs and sells luxury lifestyle battery electric cars, with operations spanning the UK, US, China, and the EU. The company focuses on next-generation automobility technologies, integrating advanced R&D into its premium EV lineup.
4. Commercial Vehicle Group, Inc. (NASDAQ:CVGI)
Number of Hedge Fund Holders: 12
Share Price: $1.90
Commercial Vehicle Group, Inc. (CVG) (NASDAQ:CVGI) is one of the best EV penny stocks to buy according to hedge funds. On August 4, the company reported its Q2 2025 financial results, where revenues declined by 11.2% year-over-year to $172 million. The company attributed the drop to softening demand in the construction, agriculture, and Class 8 truck segments globally.
CVG posted a net loss of $4.1 million, or $(0.12) per diluted share, in the quarter. In comparison, the net loss in Q2 2024 was $1.3 million, or $(0.04) per diluted share. Likewise, adjusted EBITDA decreased 36.6% year-over-year to $5.2 million, with an adjusted EBITDA margin of 3.0%, down from 4.2% in the second quarter of 2024.
CVG boosted its gross margin to 11.3%, an 80 basis point improvement from Q1 2025, despite revenue pressures, and generated $17.3 million in free cash flow, up sharply from $800,000 a year earlier, thanks to better working capital management. For full-year 2025, the company now expects net sales of $650–$670 million, adjusted EBITDA of $21–$25 million, and free cash flow of at least $30 million.
Commercial Vehicle Group, Inc. (NASDAQ:CVGI) is a global supplier of cab and electrical systems, seating assemblies, and plastic components for commercial and electric vehicles. The company serves OEMs across the trucking, construction, and industrial markets, and has expanded its capabilities to support EV platforms through advanced wire harnessing and power management solutions.
3. indie Semiconductor, Inc. (NASDAQ:INDI)
Number of Hedge Fund Holders: 15
Share Price: $3.63
indie Semiconductor, Inc. (NASDAQ:INDI) is one of the best EV penny stocks to buy according to hedge funds. On July 14, the company announced that its quantum laser technology, specifically the ultra-low noise LXM-U laser module, is gaining adoption in the quantum computing and secure communications sectors. The LXM-U laser offers industry-leading frequency stability, with noise levels claimed to be 10 times lower than those of competing technologies. As such, the laser technology is particularly suitable for demanding quantum applications, such as quantum key distribution (QKD) and quantum computing.
indie stated that the laser can maintain locked operation for days. This feature is crucial for ensuring the reliable transmission of cryptographic keys in quantum-secure communications. A unique feature of the LXM-U laser is its ease of co-packaging with other lasers and Photonic Integrated Chips (PICs). This enables the collaborative, customized design and cost-efficient production of high-performance light engines tailored to customers’ needs.
The company stated that it’s working with front-runners in quantum computing, actively sampling and collaborating on innovative solutions utilizing the LXM-U laser and advanced optical integration capabilities.
indie Semiconductor, Inc. (NASDAQ:INDI) is a fabless semiconductor company. It specializes in automotive-grade solutions for advanced driver assistance systems (ADAS), connectivity, user experience, and electrification. The firm’s portfolio includes system-on-chip architectures and laser-based technologies designed to support autonomous driving and next-gen EV platforms.
2. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 19
Share Price: $2.19
Lucid Group, Inc. (NASDAQ:LCID) is one of the best EV penny stocks to buy according to hedge funds. On August 5, the company announced its second-quarter 2025 financial results, revising its full-year 2025 production forecast downward to 18,000–20,000 vehicles from the previous estimate of 20,000 cars. Lucid cited caution amid an unprecedented number of surprises this year and macroeconomic challenges.
During the quarter, Lucid produced 3,863 vehicles and delivered 3,309 vehicles, marking a 38% increase in deliveries compared to the same period last year. Revenue reached $259.4 million, slightly below some analyst expectations, though representing a 29% increase year-over-year. The company reported a net loss of $855 million for the quarter, or $0.28 per share (GAAP), with an adjusted loss per share of $0.24, missing forecasts.
Lucid attributed its lowered production guidance partly to global trade tensions impacting costs and supply chains, as well as consumer spending caution and tariff-related pressures that increased production costs. The company stated that it is actively ramping up production of its Gravity SUV and has initiated partnerships with Uber and Nuro for robotaxis.
Lucid Group, Inc. (NASDAQ:LCID) is a U.S.-based luxury EV manufacturer. The company is known for its flagship sedan, the Lucid Air, which features high-performance battery technology and advanced autonomous driving capabilities. Lucid operates a production facility in Arizona and has expanded its global footprint through strategic partnerships and international sales.
1. ECARX Holdings Inc. (NASDAQ:ECX)
Number of Hedge Fund Holders: 30
Share Price: $1.53
ECARX Holdings Inc. (NASDAQ:ECX) is one of the best EV penny stocks to buy according to hedge funds. On July 22, the company announced a strategic partnership with Monolithic Power Systems, Inc. (NASDAQ:MPWR), a fabless provider of advanced semiconductor-based power solutions. The collaboration will focus on automotive intelligence, robotics, and AI, aiming to build a global supply chain and smart industrial ecosystem through system integration, platform adaptation, and streamlined delivery.
Both companies will jointly explore opportunities in the automotive and embodied intelligence sectors. The efforts will focus on product adaptation, validation, and system optimization to reduce development cycles and accelerate time-to-market for customers. On its part, MPS will leverage its global research and development, supply, and engineering support capabilities to help ECARX build a more resilient and efficient global supply chain. ECARX hopes that these efforts will accelerate the rollout of its products across multiple markets, supporting its international expansion strategy.
ECARX Holdings Inc. (NASDAQ:ECX) is a global automotive technology company. It designs and develops intelligent computing platforms, digital cockpits, and full-stack software solutions that power connected and autonomous vehicles, including EVs. Its core products (automotive chipsets, infotainment systems, and advanced driver-assistance technologies) are integrated into EVs produced by leading manufacturers such as Geely and Volvo. ECARX’s products enable smart mobility features in EVs, including supporting vehicle-to-cloud connectivity, energy-efficient processing, and real-time driving intelligence.
While we acknowledge the potential of ECARX Holdings Inc. (NASDAQ:ECX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ECX and that has 100x upside potential, check out our report about this cheapest AI stock.
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