We recently compiled a list of the 12 Small Cap EV Stocks to Buy Now. In this article, we are going to take a look at where Plug Power Inc. (NASDAQ:PLUG) stands against the other small-cap EV stocks.
In 2024, electric vehicles (EVs) represented 8.1% of the 16 million vehicles sold in the United States, according to Cox Automotive. While this was a record share, it was still below the 10% that analysts had expected at the beginning of the year. Despite this, some believe that the EV market may be picking up pace.
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Despite the fact that overall EV adoption has been slower than expected, brands like Cadillac are expanding their electric lineup. By the end of 2025, Cadillac plans to offer five EVs. These include the Escalade IQ, Optiq crossover, Lyriq, the upcoming three-row Vistiq, and the luxury Celestiq. Cadillac expects roughly one in three vehicles it sells in the US this year will be all-electric.
Brad Franz, Cadillac’s director of marketing, told CNBC that the company is launching EVs to grow its business and attract new customers to the brand instead of just shifting sales from gas-powered cars. According to Franz, the EV portfolio will offer customers more choices. In 2024, the company sold about 29,000 EVs. For 2025, Cadillac aims for EVs to make up between 30% to 35% of its sales in the US.
However, Cadillac has abandoned its earlier plan to sell only EVs by 2030. Instead, the company said that customer demand will determine the elimination of gas-powered vehicles.
This approach reflects a broader trend. A number of automakers have turned their back on plans to exclusively sell EVs in the near future as customer adoption has not been as fast as expected.
Methodology
To compile our list of the 12 small-cap EV stocks to buy now, we reviewed our own rankings and consulted various online resources to compile a list of the best small-cap EV stocks. Please note that we defined small-cap stocks as those with a market capitalization between $500 million and $10 billion. From an initial pool of more than 20 small-cap EV stocks that met our criteria, we focused on the top 12 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. The 12 small-cap EV stocks to buy now were then ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? 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).
A generator being fueled and readied for use as part of an end-to-end green hydrogen ecosystem.
Plug Power Inc. (NASDAQ:PLUG)
Market Capitalization: $793.27 Million
Number of Hedge Fund Holders: 24
Plug Power Inc. (NASDAQ:PLUG) is a global leader in hydrogen fuel-supply solutions and in hydrogen applications for material handling, power generation, and e-mobility. The company develops hydrogen fuel cell systems that serve as alternatives to traditional batteries in electric-powered vehicles and equipment. Hydrogen fuel cells can enhance runtime and charging efficiency to allow hydrogen-powered engines to increase their range and carry more payload compared to other electric vehicle power solutions. Plug Power Inc. (NASDAQ:PLUG) is one of the best EV stocks to invest in.
On April 28, TD Cowen analyst Jeffrey Osborne maintained a “Buy” rating on Plug Power Inc. (NASDAQ:PLUG) with a $3 price target. This decision came after the company secured a $525 million credit facility with Yorkville Advisors. This new financing arrangement will strengthen Plug Power Inc.’s (NASDAQ:PLUG) capital structure, allowing it to retire $82.5 million of its existing convertible notes. Osborne also pointed out that the company does not plan to raise equity in 2025. The company’s preliminary results for Q1 2025 were reported to have met Wall Street expectations, and Q2 guidance is projected to meet the consensus midpoint. This financial strategy seems to have reassured investors about the company’s stability and growth prospects.
Additionally, the company is taking steps to optimize its operational footprint, resources, and ongoing expenses. Plug Power Inc. (NASDAQ:PLUG) is calling these collective measures Project Quantum Leap. This project aims to reduce annual expenses by $150 million to $200 million. Through these actions, Plug Power Inc. (NASDAQ:PLUG) will further improve margins and cash flows as the company moves toward profitability.
Overall, PLUG ranks 6th on our list of small-cap EV stocks to buy now. While we acknowledge the potential of PLUG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PLUG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
