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 SolarEdge Technologies, Inc. (NASDAQ:SEDG) 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 technician wearing a safety suit and goggles working on a battery pack for an electric vehicle.
SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Market Capitalization: $872.06 Million
Number of Hedge Fund Holders: 30
SolarEdge Technologies, Inc. (NASDAQ:SEDG) is an Israeli smart energy technology company. It is best known for developing an intelligent inverter solution that improves the efficiency of solar photovoltaic (PV) systems. The company also develops and sells products for the EV market. Overall, SolarEdge Technologies, Inc. (NASDAQ:SEDG) serves a wide variety of energy market segments through its PV, storage, EV charging, batteries, and grid services solutions. Through its e-Mobility segment, the company offers a broad range of solutions for the EV market, including e-Drive systems, charging and DC converter solutions, vehicle management, and energy storage and distribution solutions. SEDG is one of the best EV stocks to invest in.
The company is investing to position itself for growth within the EV industry. In April 2024, SolarEdge Technologies, Inc. (NASDAQ:SEDG) completed the acquisition of Wevo Energy Ltd., a software startup that specializes in optimizing and managing EV charging systems for locations with large numbers of EV chargers, such as apartment buildings, workplace parking lots, and public charging locations. SolarEdge Technologies, Inc. (NASDAQ:SEDG) is looking to use Wevo’s expertise in EV charging optimization by integrating on-site solar generation, battery storage, and large-scale EV charging. Through this strategic acquisition, the company will be able to expand its offerings for commercial and industrial customers.
On May 7, 2025, SolarEdge Technologies, Inc. (NASDAQ:SEDG) launched a new solar-powered EV charging solution for businesses. The new solution is powered and controlled by an energy management system introduced after Wevo Energy’s acquisition in 2024. This solution is part of the company’s commercial and industrial ecosystem for commercial-scale solar and storage solutions and enables businesses with SolarEdge’s solar systems to charge their EV fleet with ‘power-optimized’ solar energy, which can significantly reduce their energy bills. According to SolarEdge Technologies, Inc. (NASDAQ:SEDG), one of the first beta customers reported a reduction in EV charging costs of about 70%.
Overall, SEDG ranks 3rd on our list of small-cap EV stocks to buy now. While we acknowledge the potential of SEDG 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 SEDG 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.
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