In this article, we will discuss 10 EV penny stocks to buy now.
The EV Market and Government Initiatives For It
According to the Electric Vehicle Market report by Markets and Markets, the global electric vehicle market is expected to reach 34.75 million units by 2030, up from 4.09 million units in 2021, registering a compound annual growth rate of 26.8%. As governments around the world transition from being oil-based economies to green economies in efforts to battle climate change and demand for low-emission transportation increases, automobile manufacturers are being incentivized to provide electric vehicles around the world. For instance, in November 2021 the Biden administration signed the Infrastructure Investment and Jobs Act, which authorized $1.2 trillion in spending of which $7.5 billion is to be used for setting up a network of EV charging stations. President Biden has set an ambitious target of deploying 500,000 EV charging stations nationwide by 2030 and is incentivizing EV manufacturers to encourage the deployment of EV charging stations along highways and within communities.
Global EV Sales In 2021
According to an EV outlook put forth by Canalys, the total number of electric vehicles sold globally in 2021 was estimated to be 6.5 million units, which represents a 109% increase from 2020. Even though the total global car market grew only 4% in 2021 as manufacturers around the world struggled with COVID-19 restrictions and semi-conductor shortages, 9% of all passenger car sales in 2021 were attributed to electric vehicles.
The report highlights that Europe still has the highest adoption rate for electric vehicles, followed by China. Europe and China accounted for 85% of electric vehicle purchases globally in 2021. An estimated 3.2 million EVs were delivered to China which accounted for 15% of all new car sales in 2021, and 2.3 million EVs were delivered to Europe which accounted for 19% of new car sales in 2021. In the United States, 0.53 million units of electric vehicles were sold in 2021, which accounted for 4% of new cars sales in 2021.
Soaring EV Stocks
Tesla, Inc. (NASDAQ:TSLA) is the first name that comes to mind when discussing electric vehicles. The leading EV manufacturer reported its earnings for the fiscal fourth quarter of 2021 this January, in which it outperformed market consensus for both EPS and revenue. The company reported earnings per share of $2.54, beating estimates by $0.16. Tesla, Inc. (NASDAQ:TSLA) generated revenues of $17.72 billion, up 64.92% year over year, and beat estimates by $1.08 billion. As of March 30, 2022, Tesla, Inc. (NASDAQ:TSLA) has gained 63.79% over the past twelve months.
General Motors Company (NYSE:GM) is also a key player in the EV industry, and exhibits upside potential in 2022. The company is on its way to an all-electric future and announced that it plans on stopping the manufacture of combustion engine vehicles by 2035. Moreover, General Motors Company (NYSE:GM) plans on manufacturing a fleet of 30 distinct EV models by 2025. On March 21, 2022, Wolfe Research analyst Rod Lache raised his price target on General Motors Company (NYSE:GM) to $70 from $67, while maintaining an Outperform rating on the shares.
Ford Motor Company (NYSE:F) is head-to-head with EV giant Tesla, Inc. (NASDAQ:TSLA) since it released the Mustang Mach-E and announced the electric version of the company’s renowned F-150 pickup truck. Last December, the company announced that it has secured 200,000 reservations for F-150 lightning, an order that might take up to 3 years to complete. Ford Motor Company (NYSE:F) is a popular investment choice among elite hedge funds and analysts alike. By the end of the fourth quarter of 2021, 53 hedge funds held stakes in Ford Motor Company (NYSE:F) that amounted to over $1.7 billion, up from $1.64 billion in the prior quarter with 51 positions. This January, JPMorgan analyst Ryan Brinkman raised his price target on Ford Motor Company (NYSE:F) to $23 from $20 and reiterated an Overweight rating on the shares. As of March 30, 2022, the stock has gained 40.98% over the past twelve months.
Even though major players in the EV industry like Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), and Ford Motor Company (NYSE:F) have strong business models and mission statements, not to mention strong support from investors, there are several EV startups and small-cap companies that are working on ground-breaking tech that will revolutionize the EV industry. Read on to learn more about the 10 EV penny stocks to buy now.
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Our Methodology
To find some great EV penny stocks to buy now, we looked up small- and micro-cap market indices including the Russell 2000 and S&P 600 among others and identified EV companies that these indices are tracking. We narrowed down our selection to stocks that are popular among analysts and investor circles, and are working on innovative solutions aimed at driving the growth of the EV industry. We included the hedge fund sentiment for each stock, which we sourced from Insider Monkey’s database that tracks 924 elite hedge funds as of Q4 2021, and ranked stocks in order of rising popularity among investors.
10 EV Penny Stocks to Buy Now
10. Mullen Automotive, Inc. (NASDAQ:MULN)
Number of Hedge Fund Holders: 3
Share Price as of March 30: $2.35
Mullen Automotive, Inc. (NASDAQ:MULN) is involved in the design and manufacture of electric vehicles, headquartered in California, United States. The company owns Mullen Auto Sales which consists of a chain of car dealerships in California and Arizona, and the CarHub platform. CarHub is powered by artificial intelligence and machine learning algorithms and gives users an interactive interface for car dealing.
This February, Mullen Automotive, Inc. (NASDAQ:MULN) released test results for its ground-breaking and leading solid-state battery technology. The company prides its 150-kWh solid-state polymer battery packs on yielding ranges of more than 600 miles on extended charging and 300 miles on an 18-minute DC fast charge. Mullen Automotive, Inc. (NASDAQ:MULN) is integrating its solid-state batteries into its fleet of second-generation electric vehicles, with prototyping scheduled in 2025.
By the end of the fourth quarter of 2021, 3 hedge funds were bullish on Mullen Automotive, Inc. (NASDAQ:MULN), having collective stakes of more than $0.5 million in the growing EV manufacturer.
Like Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), and Ford Motor Company (NYSE:F), Mullen Automotive, Inc. (NASDAQ:MULN) is an electric vehicle manufacturer that is pioneering innovative battery technology in the EV industry.
9. Ideanomics, Inc. (NASDAQ:IDEX)
Number of Hedge Fund Holders: 7
Share Price as of March 30: $1.04
Ideanomics, Inc. (NASDAQ:IDEX) is a global electric vehicle company that is focused on driving the adoption of commercial electric vehicles and associated sustainable energy consumption. The company has various EV subsidiaries including Via Motors, Solectrac, and US Hybrid. Last November, Ideanomics, Inc. (NASDAQ:IDEX) reported that its revenue for the fiscal third quarter of 2021 was $27.05 million.
This March, the company announced that it has finalized its majority ownership stake in Energica Motor Company S.p.A, which is an Italian manufacturer and distributor of high-performance electric motorcycles. Ideanomics, Inc. (NASDAQ:IDEX) now owns 70% of the Italian electric motorcycle maker. The company has previously acquired VIA Motors, Solectrac, Treeletrik, Wave, and US Hybrid.
On February 11, 2022, Cantor Fitzgerald analyst Andres Sheppard initiated coverage of Ideanomics, Inc. (NASDAQ:IDEX) with an Overweight rating and a $3 price target. The analyst believes that the company’s different business segments are being undervalued and sees upside potential for Ideanomics, Inc. (NASDAQ:IDEX).
By the end of the fourth quarter of 2021, 7 hedge funds held stakes in Ideanomics, Inc. (NASDAQ:IDEX) worth over $8.68 million. Of these, D E Shaw was the most prominent stakeholder in the company, having stakes of more than $6.35 million.
8. Ayro, Inc. (NASDAQ:AYRO)
Number of Hedge Fund Holders: 8
Share Price as of March 30: $1.36
7. Workhorse Group, Inc. (NASDAQ:WKHS)
Number of Hedge Fund Holders: 9
Share Price as of March 30: $4.96
Workhorse Group, Inc. (NASDAQ:WKHS) designs and manufactures zero-emission commercial electric vehicles in the United States. The company offers electric medium-duty delivery trucks and purpose-built all-electric drone systems. This March, R.F. Lafferty analyst Jamie Perez upgraded Workhorse Group, Inc. (NASDAQ:WKHS) to Buy from Hold with a price target of $6, up from $4.
On March 1, 2022, Workhorse Group, Inc. (NASDAQ:WKHS) announced that it has signed a multi-year supply agreement with GreenPower Motor Company Inc (NASDAQ:GP) to facilitate the manufacturing and delivery of medium-duty Class 4 step vans into the North American market. Both companies have confirmed a 21-month schedule during which GreenPower Motor Company Inc (NASDAQ:GP) will deliver 1,500 EV Star cab and chassis to Workhorse Group, Inc. (NASDAQ:WKHS) starting in the third quarter of 2022. The chassis will be used in the production of Workhorse Group, Inc.’s (NASDAQ:WKHS) new Class 4 W750 step van line, which will be delivered to customers in the United States and Canada upon finishing.
By the close of the fourth quarter of 2021, Workhorse Group, Inc. (NASDAQ:WKHS) was found on 9 hedge fund portfolios. The combined stakes of these hedge funds equaled $8.27 million. Of these, Sculptor Capital was the most prominent shareholder in the company, owning over 930,000 shares of stock which amount to a stake value of $4.05 million.
Workhorse Group, Inc. (NASDAQ:WKHS) is a cheaper investment option, with promising business fundamentals, to invest in the EV sector. Other renowned companies in the EV industry include Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), and Ford Motor Company (NYSE:F).
6. Kandi Technolgies Group Inc. (NASDAQ:KNDI)
Number of Hedge Fund Holders: 9
Share Price as of March 30: $3.32
Kandi Technologies Group, Inc. (NASDAQ:KNDI) is a Chinese battery and electric vehicle manufacturer. The company manufactures electric vehicle products and parts, and off-road vehicles. It offers off-road vehicles, including all-terrain vehicles, utility vehicles, go-karts, electric scooters, and electric self-balancing scooters, as well as related parts. Last December, Noble Capital analyst Michael Heim initiated coverage of Kandi Technologies Group, Inc. (NASDAQ:KNDI) with an Outperform rating and a $5 price target.
On December 28, 2021, Kandi Technologies Group, Inc. (NASDAQ:KNDI) announced that its wholly-owned subsidiary Jiangxi Province Huiyi New Energy will be in charge of mass production of the company’s cutting-edge lithium iron phosphate battery, which is one of the most advanced batteries on the global market.
This January, Kandi Technologies Group, Inc. (NASDAQ:KNDI) announced a joint-venture collaboration with Hunan Hengrun to produce battery-swap enabled pure electric vehicles. According to the agreement, both companies will use their respective capabilities to jointly produce battery-swappable pure electric vehicles. Terms of the agreement about labor division and operations are yet to be documented and announced.
By the end of the fourth quarter of 2021, 9 hedge funds held stakes in Kandi Technologies Group, Inc. (NASDAQ:KNDI). The total value of these stakes came to $11.26 million, up from $8.36 million in the preceding quarter with 8 positions. Kandi Technologies Group, Inc. (NASDAQ:KNDI) is rising in popularity among elite hedge funds and has a positive hedge fund sentiment.
Marshall Wace LLP is the most prominent shareholder in Kandi Technologies Group, Inc. (NASDAQ:KNDI) as of February 23, 2022. The fund owns over 1.46 million shares of Kandi Technologies Group, Inc. (NASDAQ:KNDI) which amounts to a stake value of $4.70 million.
5. Electrameccanica Vehicles Corp. (NASDAQ:SOLO)
Number of Hedge Fund Holders: 10
Share Price as of March 30: $2.37
Electrameccanica Vehicles Corp. (NASDAQ:SOLO) manufactures and sells electric vehicles in Canada. The company operates in two segments: Electric Vehicles and Custom Build Vehicles. The company’s flagship product is the SOLO, a single-seat vehicle. The company is also developing Tofino, an all-electric two-seater roadster. This March, Electrameccanica Vehicles Corp. (NASDAQ:SOLO) announced earnings for the fiscal fourth quarter of 2021. The company’s quarterly revenue came to $1.51 million, up 1,307.36% year over year, outperforming market consensus by $0.48 million.
On February 15, 2022, Electrameccanica Vehicles Corp. (NASDAQ:SOLO) announced a collaboration with Faction Technology to test Faction’s driverless and remote vehicle operation technology on the SOLO EV Platform. Faction Technologies is working in the domain of autonomous driving, and its AI is trained to detect patterns of when a vehicle needs guidance from an operator. ElectraMeccanica Vehicles Corp. (NASDAQ:SOLO) and Faction Technologies are moving towards the pilot deployment of a driverless demonstration of up to 24 SOLO EVs over the next 12 months.
By the end of the fourth quarter of 2021, Electrameccanica Vehicles Corp. (NASDAQ:SOLO) was spotted on 10 hedge fund portfolios that had total stakes worth $6.77 million in the company. This is compared to 8 positions in the prior quarter, with total stakes of $5.25 million. The hedge fund sentiment for the stock is positive.
According to Insider Monkey’s database, Millennium Management was the most prominent stakeholder in Electrameccanica Vehicles Corp. (NASDAQ:SOLO) at the close of the fourth quarter of 2021. The fund upped its previous stakes in the company by 151%, and as of February 23, 2022, has stakes worth more than $4.74 million in the company.
4. REE Automotive Ltd. (NASDAQ:REE)
Number of Hedge Fund Holders: 10
Share Price as of March 30: $1.97
REE Automotive Ltd. (NASDAQ:REE) is an Israel-based electric vehicle technology company that operates in the e-mobility business. The company develops REEcorner technology, which integrates vehicle drive components, including steering, braking, suspension, powertrain, and control into the arch of the wheel. The company also develops REEboard which is a flat and modular EV chassis. This March, Wells Fargo analyst Lawrence Biegelsen initiated coverage of Ree Automotive Ltd. (NASDAQ:REE) with an Underweight rating and a $1 price target.
Last November, REE Automotive Ltd. (NASDAQ:REE) announced that it has entered into a strategic collaboration with American Axle & Manufacturing, Inc. (NYSE:AXL) to supply high-performance electric drive units in a modular platform that can support multiple customer vehicle programs. Both companies announced plans to develop a new electric propulsion system that integrates REE Automotive Ltd.’s (NASDAQ:REE) REEcorner technology into Axle & Manufacturing, Inc.’s (NYSE:AXL) electric drive units which will enable a fully flat EV chassis for multiple commercial vehicle applications. Prototyping is underway as of the close of 2021, and full-volume production is expected by 2024.
Insider Monkey spotted REE Automotive Ltd. (NASDAQ:REE) on 10 hedge fund portfolios at the end of the fourth quarter of 2021. These funds had collective stakes of $21.07 million in the company.
3. Arrival (NASDAQ:ARVL)
Number of Hedge Fund Holders: 11
Share Price as of March 30: $4.03
Arrival (NASDAQ:ARVL) is a British electric vehicle manufacturer that focuses on the design, assembly, and distribution of commercial electric vehicles worldwide. The company’s portfolio consists primarily of lightweight commercial vehicles including EV vans, buses, and cars. Last December, UBS analyst Steven Fisher initiated coverage of Arrival (NASDAQ:ARVL) with a Neutral rating and a $10 price target.
On December 16, 2022, Arrival (NASDAQ:ARVL) unveiled its first finished prototype of the Arrival Car, specifically designed for the ride-hailing industry. The Arrival Car is designed in a way to maximize comfort, reduce costs, and offer increased security, being wary of the fact that ride-hailing cars are expected to drive almost 5 times more than a typical car annually. The Arrival Car boasts legroom twice as large as that of an average car of the same length.
On December 28, 2022, Arrival (NASDAQ:ARVL) announced the commencement of trials of the company’s Arrival Bus in the UK. The vehicles will be undergoing validation and road testing before being legalized. Arrival (NASDAQ:ARVL) is expected to begin production for its electric Bus during the second quarter of 2022.
Insider Monkey was able to identify 11 hedge funds having stakes in Arrival (NASDAQ:ARVL) by the end of the fourth quarter of 2021. The combined stakes of these funds equaled $14.74 million, up from $10.0 million in the third quarter of 2021 with 4 identified positions. As of March 25, 2022, Millennium Management is the most prominent shareholder in Arrival (NASDAQ:ARVL), having stakes worth $4.28 million in the company.
2. Volta Inc. (NYSE:VLTA)
Number of Hedge Fund Holders: 14
Share Price as of March 30: $3.33
Volta Inc. (NYSE:VLTA) is an American electric vehicle infrastructure company. Volta charging stations are compatible with all major plug-in hybrid and battery electric vehicle types in the United States and are equipped with digital screens that run advertisements. This February, Canaccord analyst Jed Dorsheimer initiated coverage of Volta with a Buy rating and a $10 price target, citing the company’s “unique” charging and media business model as an opportunity for investors to identify the upside of electric vehicle stocks as electric vehicles become more common and installing of EV charging stations increases.
On February 8, 2022, Volta Inc. (NYSE:VLTA) announced new contracts for the installation of DC Fast and AC charging stations in European markets: Switzerland, Germany, and France. The company has installed Volta stalls in France and has signed partnership deals with Switzerland and Germany. Volta Inc. (NYSE:VLTA) plans on continuing exploring European markets and will work on installing its charging stations at commercial properties and retail locations in Europe through 2022. Moreover, on February 14, 2022, Volta Inc. (NYSE:VLTA) announced the expansion of its collaboration with Walgreens Boots Alliance, Inc. (NASDAQ:WBA) to install 1,000 DC fast charging stalls at over 500 Walgreens retail outlets spread throughout the United States.
Out of the 924 elite hedge funds being tracked by Insider Monkey as of the fourth quarter of 2021, 14 held stakes in Volta, Inc. (NYSE:VLTA) worth more than $27.44 million.
1. Xos Inc. (NASDAQ:XOS)
Number of Hedge Fund Holders: 16
Share Price as of March 30: $3.20
Xos Inc. (NASDAQ:XOS) manufactures fully electric, zero-emission medium and heavy-duty commercial vehicles, powertrain components, and charging infrastructure. The company focuses on developing innovative technologies for its fleet of vehicles which includes step vans, box trucks, and vocational vehicles in an eco-friendly manner.
Last December, Goldman Sachs analyst Jerry Revich initiated coverage of Xos Inc. (NASDAQ:XOS) with a Neutral rating and a $4.25 price target and had a positive outlook on the company’s low-cost product strategy supported by its vertically integrated battery pack and proprietary battery management technologies.
This February, Xos Inc. (NASDAQ:XOS) revealed a video that showed a truck built at CITE Armored, a leader in custom security manufacturing for Loomis (STO:LOOMIS). Moreover, on March 8, 2022, Xos Inc. (NASDAQ:XOS) announced entering a strategic collaboration with Merchants Fleet. The partnership is aimed at helping Merchants Fleet expand its offering of electric fleet vehicles by purchasing EV step vans from Xos Inc. (NASDAQ:XOS). The first 10 step vans are expected to be delivered to Merchants Fleet in 2022.
On March 28, 2022, Xos Inc. (NASDAQ:XOS) reported earnings for the fiscal fourth quarter of 2021, in which the company beat estimates. According to Xos Inc.’s (NASDAQ:XOS) earnings report, the company’s revenue came to $3.30 million, outperforming market consensus by $0.44 million. As of March 30, 2022, Xos Inc. (NASDAQ:XOS) is worth $542.47 million on the open market and has gained 13.65% year to date.
By the end of the fourth quarter of 2021, 16 hedge funds held stakes in Xos Inc. (NASDAQ:XOS) worth over $5.51 million. Of these, Antara Capital was the most prominent stakeholder in the company, owning 500,000 shares of the stock which amount to a stake value of $1.57 million. The investment covers 0.07% of Antara Capital’s Q4 2021 investment portfolio.
You can also take a look at 21 Best Electric Cars of 2021 and 15 Best Electric Car Stocks to Buy Now.
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Disclose. None. 10 EV Penny Stocks to Buy Now is originally published on Insider Monkey.
