10 Best EV Stocks Under $5

Published August 6, 2022 at 8:00 am EDT Updated September 7, 2026 at 2:21 pm EDT

In this article, we will discuss the 10 best EV stocks under $5.

In 2021, electric vehicle (EV) sales doubled from the preceding year to reach a new high of 6.6 million. In 2021, the market share for electric vehicles was 4x what it was in 2019 and there are now over 16.5 million electric vehicles on the road worldwide, which is 3x more than there were in 2018. With 2 million electric vehicles sold in the first quarter of 2022, a 75% increase from the same time in 2021, the market for electric vehicles continues to grow rapidly.

Legacy automakers like Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM), and Toyota Motor Corporation (NYSE:TM) are diverting significant resources towards developing new EVs. Meanwhile, established startups like Tesla, Inc. (NASDAQ:TSLA) and BYD Company Limited (OTC:BYDDF) are spearheading the industry. Tesla, Inc. (NASDAQ:TSLA) is the biggest auto company in the world in terms of market capitalization.

Analysts anticipate EV sales to account for 48% of new vehicle sales by 2030. Their contribution stood at just 5% as of 2020. Meanwhile, the number of EV charging points stands at 115,000 currently, a figure which is expected to balloon to 120 million by the end of this decade. To help with infrastructure problems, many governments around the world are introducing incentives for building EV chargers. The Biden administration has a plan to build 500,000 public EV charging stations in the U.S by 2030. In Japan, the government declared a target of 150,000 public charging outlets by 2030. Similarly, by 2025, the government of China has set a target to construct enough EV charging stations in the country to power 2 million vehicles.

Global Electric Passenger Vehicle Model Shipments Tracker data shows that EV shipments increased 79% year-over-year during the first quarter of 2022 to reach 1.95 million units. Battery electric cars (BEVs) made up 73% of those units, with plug-in hybrid electric vehicles (PHEVs) making up the remainder. In terms of EV shipments, China continued to lead the industry, with Europe and the U.S following as the next two biggest markets. From a mere 0.5 million units in Q1 2021, China’s EV shipments climbed by 126% year-over-year in Q1 2022 to more than 1.14 million units.

As the theme of EVs is gaining momentum with every passing day, investors are diverting their funds into EV stocks. However, a challenge emerges when an EV stock gains momentum. Share prices start to rise significantly, which locks out investors with a modest investment. The Austin, Texas-based Tesla is a perfect example of this, as the stock price of the Elon Musk-led company is again above the $900 mark after going through a five-to-one stock split in August 2020. Only some brokers provide the option of buying fractional shares in big companies like Tesla to aid individual investors.

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Our Methodology

Let’s begin our list of the 10 best EV stocks under $5. We have discussed the potential catalysts and highlighted the growth prospects for these stocks. The EV industry is evolving, and these penny stocks offer a great opportunity for investors to earn healthy returns in the long-term. While penny stocks are not too popular among hedge funds, we have still provided information regarding the number of hedge fund holders of each stock to provide readers with additional investment context.

10 Best EV Stocks Under $5

10. Phoenix Motor Inc. (NASDAQ:PEV)

Stock Price as of August 3: $3.240

Phoenix Motor Inc. (NASDAQ:PEV) is an Anaheim, California-based company that is focused on incorporating light and medium duty EVs into the fleet and transit markets. The company conducted an initial public offering (IPO) of 2.1 million shares at $7.50 per share in June 2022.

Phoenix Motor Inc. is betting on the EdisonFuture project that is focused on developing light and medium-duty EVs. The company is considered a pioneer in the EV sector, as it developed its first commercial vehicle in 2014 and had its proprietary drivetrain integrated into the Ford E-450 chassis. Furthermore, Phoenix Motor Inc. presented two concept cars during the Los Angeles Auto Show in December 2021. The EF1 pickup truck and delivery van have solar panels installed on them to provide extra range and are expected to compete against Tesla, Inc.’s Cybertruck and R1T by Rivian Automotive, Inc. (NASDAQ:RIVN). If the company can deliver these two models to the market, it could be a game changer and help Phoenix Motor Inc. improve its profile dramatically.

9. Ideanomics, Inc. (NASDAQ:IDEX)

Stock Price as of August 3: $0.739

Number of Hedge Fund Holders: 4

Ideanomics, Inc. (NASDAQ:IDEX) is a New York-based EV company that is working on increasing the adoption of EVs at a commercial level. The company was founded in 2004 and is an amalgamation of five entities. Solectrac is one of the fully-owned subsidiaries of Ideanomics, Inc. that is involved in developing, manufacturing, and selling battery-powered electric tractors.

Ideanomics, Inc. will be announcing its Q2 2022 results on August 12. Analysts anticipate the company will report revenue of $33.20 million. Ideanomics, Inc. is making headway and planning to launch its EV experience center in New Jersey by the end of this year. The 48,500-square feet facility will aid in the development of new products and ramp up the company’s production of its existing product line. A separate area of 4,000 square feet will be allocated to a showroom, and the facility is expected to generate 75 to 100 new jobs in the area.

D E Shaw raised its stake in Ideanomics, Inc. by 85% during the first quarter of the year.

8. Arcimoto, Inc. (NASDAQ:FUV)

Stock Price as of August 3: $3.010

Number of Hedge Fund Holders: 4

Arcimoto, Inc. (NASDAQ:FUV) is a Eugene, Oregon-based EV company that went public in 2017 and is known for selling a two-seater and a three-wheeler EV known as the Fun Utility Vehicle (FUV). The FUV has a top speed of 75 miles per hour.

Arcimoto, Inc. also has other products that cater to the needs of emergency services and last-mile deliveries. During Q2 2022, Arcimoto, Inc. produced 102 vehicles, reflecting the highest quarterly production in the company’s history. Arcimoto, Inc. is on track to ramp its daily production to 12 cars per day by the end of 2022, which would double its average daily production of six cars per day as of June 22. Based on the ramp-up in production, analysts anticipate Arcimoto, Inc. to report quarterly revenue of $2.3 million by the end of this year.

Arcimoto, Inc. was held by 4 hedge funds at the end of Q1 2022, with cumulative stakes of $1.16 million.

7. Ayro, Inc. (NASDAQ:AYRO)

Stock Price as of August 3: $1.020

Number of Hedge Fund Holders: 5

Ayro, Inc. (NASDAQ:AYRO) is a Round Rock, Texas-based designer and producer of EVs and e-delivery systems.

Ayro, Inc. was founded in 2015 and commenced production of its cost-saving, low maintenance, and zero emissions club car in June 2021. Soon after commencing production, Ayro, Inc. received $4.9 million worth of orders for delivery. The company is also working on developing products for the low-speed EV sector, which is considered a $5.6 billion market and is expected to compound annually at an average rate of 4.8%.

Furthermore, Ayro, Inc. has formed a strategic partnership with Karma Automotive, which intends to produce around 20,000 EVs by 2023 with a worth of nearly $300 million. Low-speed EVs could cater to the needs of enclosed areas like colleges, hotels, and resorts. In the U.S, there are 1,800 colleges and universities that have an average fleet of 400 vehicles.

At the end of Q1 2022, 5 funds held a stake in Ayro, Inc..

6. CBAK Energy Technology, Inc. (NASDAQ:CBAT)

Stock Price as of August 3: $1.210

Number of Hedge Fund Holders: 6

CBAK Energy Technology, Inc. (NASDAQ:CBAT) is a Shenzhen, China-based developer, manufacturer, and seller of lithium-ion batteries and their raw materials. The products produced by CBAK Energy Technology, Inc. have a wide application in EVs.

The lithium-ion industry is expected to compound annually by 30% and reach a size of $58 billion by 2025. The Chinese government is supporting the green revolution through EVs. In 2021, CBAK Energy Technology, Inc. acquired a supplier of battery materials in the form of Hitrans Lithium Battery Technology Company. CBAK Energy Technology, Inc. shared that the acquired firm’s revenue was 4x that of CBAK Energy Technology, Inc.’s during the last year. CBAK Energy Technology, Inc. has achieved better vertical integration through the acquisition.

The company also revealed that it has partnered with an undisclosed Chinese high-tech battery maker for the research and development of sodium-ion batteries. The sodium-ion battery is considered a step forward from the generation of lithium-ion batteries and is attracting significant attention from investors. Popular companies like Tesla, Inc., Ford Motor Company, and General Motors Company are also making significant investments in the EV industry to aid their expansion.

Of the 912 hedge funds in Insider Monkey’s database, 6 funds held a stake in CBAK Energy Technology, Inc. as of Q1 2022.

5. Electrameccanica Vehicles Corp. (NASDAQ:SOLO)

Stock Price as of August 3: $1.580

Number of Hedge Fund Holders: 9

Electrameccanica Vehicles Corp. (NASDAQ:SOLO) is a Canadian vehicle manufacturer that operates in the EV segment through its cost-effective single-seater and three-wheel variant SOLO.

Electrameccanica Vehicles Corp.’s EV provides a top speed of 80mph, a range of 40 miles, and sells at a retail price of $18,500. The EV charges from 0% to 85% in two-and-a-half hours on a level two charger. The sale of EVs is expected to compound at an average rate of 34% annually to reach four million by 2030 as the world is transitioning from conventional fuel-powered vehicles. The U.S government is also injecting $7.5 billion as part of its infrastructure bill into developing EV charging capabilities across the U.S, which will benefit a company like Electrameccanica Vehicles Corp..

Overall, 9 hedge funds reported owning a stake in Electrameccanica Vehicles Corp. as of Q1 2022.

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

Stock Price as of August 3: $2.520

Number of Hedge Fund Holders: 11

Kandi Technologies Group, Inc. (NASDAQ:KNDI) is a Chinese battery and EV manufacturer.

The company received approval for its K22 and EX3 EV from the National Highway Traffic Administration in 2019 and shipped 50 to 100 EVs to the U.S in the same year. Kandi Technologies Group, Inc. is considered an attractive play on the EV market because it manufactures and distributes a wide range of parts and specialty vehicles, the most prominent being its self-balancing scooters.

Unlike some Chinese companies that are considering listing on the Hong Kong Stock Exchange for fears of being delisted from the U.S stock markets, Kandi Technologies Group, Inc. plans to fulfill the listing requirements of the U.S markets and remain listed. The stock has been trading on the U.S market for over a decade.

The number of hedge funds holding a stake in Kandi Technologies Group, Inc. increased from 9 in the fourth quarter of 2021 to 11 in Q1 2022.

3. Workhorse Group Inc. (NASDAQ:WKHS)

Stock Price as of August 3: $4.060

Number of Hedge Fund Holders: 11

Workhorse Group Inc. (NASDAQ:WKHS) is a Sharonville, Ohio-based manufacturer of commercial-grade, high-performance, medium-duty last-mile electric delivery vans that have a range of around 100 miles.

Workhorse Group Inc. has developed a cloud-based and real-time fleet monitoring system. The company claims that its vehicles have covered 8.5 million miles on the road. Furthermore, Workhorse Group Inc. has revealed initial purchase orders for the W750 and is targeting record production during the second-half of the year. Workhorse Group Inc. also has additional top-line potential through its Aviation business. The company has overcome concerns related to its C1000 electric van and has sold 250 vehicles this year to generate revenue of $25 million.

At the end of Q1 2022, 11 funds held a stake in Workhorse Group Inc..

2. Lordstown Motors Corp. (NASDAQ:RIDE)

Stock Price as of August 3: $2.930

Number of Hedge Fund Holders: 13

Lordstown Motors Corp. (NASDAQ:RIDE) is an Ohio-based EV company which operates a production facility that previously belonged to General Motors Company.

Some experts consider Lordstown Motors Corp. similar to what Tesla, Inc. was around ten years ago. Lordstown Motors Corp. has reached an agreement with Foxconn that will help it raise capital for the mass production of Endurance, the company’s flagship light-duty electric-powered pickup truck. Lordstown Motors Corp. is on track to deliver 500 vehicles this year. Analysts expect the company’s annual production to rise to 2,500 vehicles in 2023 and 10,000 vehicles in 2024.

Lordstown Motors Corp. was held by 13 elite funds at the end of Q1 2022.

1. Canoo Inc. (NASDAQ:GOEV)

Stock Price as of August 3: 3.740

Number of Hedge Fund Holders: 19

Canoo Inc. (NASDAQ:GOEV) is a Torrance, California-based developer and manufacturer of EVs that is on track to sell a lifestyle vehicle this year. Canoo Inc. is looking into exploring the commercial EV segment by developing and manufacturing electric vans for rental and ride-sharing services.

In a note issued to investors on July 14, Jaime Perez at R. F. Lafferty maintained a ‘Buy’ rating on Canoo Inc. stock and assigned it a target price of $17. The development took place after the company reached an EV fleet purchase agreement with Walmart, Inc. (NYSE:WMT). The contract is valued at $300 million and requires Canoo Inc. to deliver 10,000 vehicles. Perez anticipates the company will generate $700 million in revenue in 2023, which is on the lower end of management’s guidance of 14,000 to 16,000 deliveries next year. Canoo Inc. was also awarded a contract by the U.S military on July 19, which requires them to deliver an EV for analysis and demonstration.

At the end of Q1 2022, 19 hedge funds held a stake in Canoo Inc..

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