We recently published a list of EV Penny Stocks List: From $10 to Under $1. In this article, we are going to take a look at where Solid Power, Inc. (NASDAQ:SLDP) stands against other stocks in EV penny list: from $10 to under $1.

The global electric vehicle (EV) market is on a roll despite the ever-growing tariff turmoil triggered by US President Donald Trump. That was clear as EV sales increased by 29% in the first quarter, to 4.1 million on the sale of 1.7 million units in March.

China, which continues to lead the world in EV adoption, reported a 36% year-over-year increase in EV sales in Q1, with sales in March alone topping 1 million units, a record last seen in August 2024. Due to the minimal cross-border EV sales, China is unlikely to experience significant impacts from the US-China tariff dispute. While North American EV sales were up by 16% in the first quarter, adding to the 7.3% increase in 2024, the market’s long-term outlook remains unclear. That’s in part to Trump’s imposition of substantial tariffs on auto parts and other equipment that automakers need to ramp up the development of EVs.

The 25% tax imposed in February on cars imported from Canada and Mexico and a larger levy imposed in March on all auto imports is anticipated to trigger a significant increase in EV prices. The impact on affordability and market dynamics is probably substantial, given that about 40% of US EV sales are imported from nations like Mexico, Korea, and Japan.

Approximately two-thirds of the electric vehicles sold in the US last year were manufactured domestically, but, like all contemporary cars, the necessary parts and components are procured from various countries worldwide. The ongoing, intense trade conflict with China, the leading global supplier of materials for EV batteries, will further complicate the market.

Additionally, there is substantial speculation that the new administration may undo the electric vehicle sales incentives established during the Biden administration, casting a shadow over the outlook for EV sales in the second quarter and beyond.

Consequently, the remainder of 2025 is expected to be a tumultuous period for electric vehicle sales in the United States, even with the launch of new products and appealing incentives. Should the new automobile tariffs remain in place, they will create a significant obstacle for numerous automakers, mainly because of the tariffs applied to steel and, crucially for EVs, aluminium.

Amid the headwinds, analysts expect 2025 to be a strong year for EV sales in the US, building on the positive momentum in 2024. Likewise, the stocks of companies exposed to the electric vehicle spectacle should be the biggest beneficiary, especially penny stocks trading at highly discounted valuations.

Our Methodology

To compile this list, we focused on companies within the EV industry, sourced from ETFs trading below $10 as of April 16. From this group, we identified 10 stocks most preferred by institutional investors, including those priced under $1. The leading EV penny stocks are ranked in ascending order based on hedge fund sentiment, derived from Insider Monkey’s database of 1,009 hedge funds as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? 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).

Solid Power, Inc. (NASDAQ:SLDP)

Number of Hedge Fund Holders: 13

Share Price as of April 16 2025: $1.07

Solid Power, Inc. (NASDAQ:SLDP) is an auto parts company that develops and sells solid-state battery technologies for electric vehicles (EV) and other markets. Its edge as one of the best EV players stems from working closely with established automakers, such as BMW and SK On, on developing competitive solid-state battery technology for the auto industry.

Solid Power, Inc. (NASDAQ:SLDP) has already extended its joint development agreement with Ford Motor. The strategic collaboration seeks to enhance the development of solid-state battery technology, which is expected to unlock new growth opportunities for the auto parts company. In addition, the company is negotiating a $50 million grant from the US Department of Energy to enhance its production capacity to capitalize on the growing demand for batteries in the EV space.

Solid Power, Inc. (NASDAQ:SLDP) delivered solid 2024 results characterized by a 2.7 million increase in revenues to $20.1 million. The strategic agreement with SK On mostly drove the increase. The company exited the year in a strong liquidity position with $327.5 million in cash and cash equivalents, sufficient to scale its operations.

Overall, SLDP ranks 8th on our list of stocks in EV penny list: from $10 to under $1. While we acknowledge the potential of SLDP as an investment, our conviction lies in the belief that 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 SLDP but that trades at less than 5 times its earnings check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.