In this article, we will be taking a look at the 5 best EV battery stocks under $10. To read our detailed analysis of the EV battery sector, you can go directly to see the 10 Best EV Battery Stocks Under $10.

5. Microvast Holdings Inc (NASDAQ:MVST)

Share Price as of April 5: $1.31
Number of Hedge Fund Holders: 12

Microvast Holdings Inc (NASDAQ:MVST) is a US-based manufacturer of fast-charging, long-lasting lithium-ion battery systems for electric vehicles (EVs). Like many other companies in the EV battery market, the company has strong fundamentals but a depressed stock price. Microvast Holdings Inc (NASDAQ:MVST) has developed an advanced lithium-ion battery technology that enables fast charging, long battery life, and high energy density.

In addition, the company has a strong IP portfolio, with over 550 patents and patent applications worldwide. Most importantly, Microvast enjoys strong partnerships in the industry. Microvast Holdings Inc (NASDAQ:MVST) was selected as the battery supplier for MAFI-TREPEL, a leading manufacturer of electric vehicles for airport ground handling operations. This partnership allows the company to boost its financial position, which should convince the market to increase the buying pressure on the stock. H.C. Wainwright has a ‘Buy’ rating on Microvast Holdings Inc (NASDAQ:MVST).

Insider Monkey tracked 12 hedge funds with positions in Microvast Holdings Inc (NASDAQ:MVST) in the fourth quarter, up from 11 in the previous quarter. The total value of these stakes is roughly $24.7 million.

4. Solid Power Inc (NASDAQ:SLDP)

Share Price as of April 5: $2.87
Number of Hedge Fund Holders: 18

Solid Power Inc (NASDAQ:SLDP) is a developer of solid-state batteries for electric vehicles. The company has a longstanding partnership with Ford and BMW, which provides access to funding, expertise, and market opportunities.

Additionally, Solid Power Inc (NASDAQ:SLDP)’s advanced solid-state battery technology could position the company as a key player in the growing market for solid-state batteries. Furthermore, the company has a strong intellectual property portfolio and an experienced management team that could help protect its innovations and guide its growth. While Solid Power Inc (NASDAQ:SLDP) may face challenges in maintaining its competitive position, its innovative technology, strategic partnerships, and experienced team make it an attractive investment option for those interested in the EV market. On March 8, Needham analyst Chris Pierce initiated coverage of Solid Power Inc (NASDAQ:SLDP), maintaining a ‘Buy’ rating and a $5 price target.

In the fourth quarter of 2022, Solid Power Inc (NASDAQ:SLDP) was a popular stock among hedge funds, as evidenced by the 18 funds that Insider Monkey was tracking declaring holdings in the business. The total value of these holdings is around $11.55 million. With 1.04 million shares, Steve Pattyn’s Yaupon Capital is Solid Power Inc (NASDAQ:SLDP)’s notable stakeholder in Q4.

3. Quantumscape Corp (NYSE:QS)

Share Price as of April 5: $7.99
Number of Hedge Fund Holders: 21

Quantumscape Corp (NYSE:QS) is an EV battery market player in the United States. Although relatively younger, it has demonstrated the capability to redefine the market through innovations, to which its growing IP portfolio is the best testament. In addition, Quantumscape Corp (NYSE:QS) has strong financial backing from shareholders, enabling it to scale up its production capabilities and bring its technology to market.

Despite the strong financial position, the stock is down significantly from its peak price. The share price recently declined to $7 or $8, far from its 52-week high of $22.21. As a result, Morgan Stanley lowered the company’s price target from $4 to $3 and retained an ‘Underweight’ rating on the shares.

According to Insider Monkey’s data, 21 hedge funds were long Quantumscape Corp (NYSE:QS) at the end of Q4 2022, compared to 14 funds in the prior quarter. JS Capital is a major shareholder of Quantumscape Corp (NYSE:QS), with 2.04 million shares worth $11.54 million.

2. Nio Inc. (NYSE:NIO)

Share Price as of April 5: $9.21
Number of Hedge Fund Holders: 25

Nio Inc. (NYSE:NIO) is a Chinese automobile manufacturer specializing in designing and developing premium electric vehicles (EVs). It also manufactures EV batteries as it seeks to grow an independent supply chain. Nio Inc. (NYSE:NIO) has also developed its own battery swapping and charging infrastructure to support its growing fleet of electric vehicles and has worked to integrate advanced charging and battery management systems into its vehicles.

As an EV battery market player, Nio Inc. (NYSE:NIO) enjoys greater control over the quality and performance of the batteries that power its vehicles. Also, the proprietary battery-swapping technology allows the company to carve a niche in the industry. Most importantly, Nio Inc. (NYSE:NIO) has a strong brand and customer loyalty, especially because it is among China’s EV market pioneers. Also, the company has strong financials, providing a robust background for the share price to take off.

The number of hedge funds tracked by Insider Monkey having stakes in Nio Inc. (NYSE:NIO) decreased to 25 in Q4 from 26 in the preceding quarter. These stakes hold a consolidated value of $379.68 million. Electron Capital Partners is a significant shareholder in the company, with 6.3 million shares valued at $61.45 million.

1. FREYR Battery (NYSE:FREY)

Share Price as of April 5: $8.23
Number of Hedge Fund Holders: 27

Headquartered in Luxembourg, FREYR Battery (NYSE:FREY) is an EV battery manufacturer that aims to become a leading supplier of clean and sustainable lithium-ion batteries for electric vehicles. FREYR Battery’s key strengths include a focus on sustainability, strategic partnerships with mature technology companies like Siemens and Elkem, and a large-scale battery production capacity. The company expects to have an annual production capacity of up to 43 GWh by 2025.

Additionally, FREYR Battery (NYSE:FREY) boasts advanced battery technologies, including a silicon anode technology that could significantly improve energy density and charging speed. These technologies could help the company to differentiate itself from competitors in the EV battery market and establish a strong competitive position. BofA started covering FREYR Battery (NYSE:FREY) in February 2023 with a ‘Buy’ rating and $13 price target.

At the end of Q4, 27 hedge funds were long FREYR Battery (NYSE:FREY), compared to 22 funds in the prior quarter. Among these hedge funds, Sylebra Capital Management is FREYR Battery (NYSE:FREY)’s most noticeable stakeholder, with 8.27 million shares worth $71.82 million. FREYR Battery (NYSE:FREY) tops the list of 10 best EV battery stocks under $10.

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