best auto ev penny stocks to watch right now

Automotive & EV Penny Stocks To Watch Right Now

One of the catalysts fueling momentum in penny stocks has been something called sympathy momentum. The general idea of this is as follows: A larger company or industry event happens and traders look for low priced stocks that “could” have the same potential. We saw this and continue seeing this with marijuana penny stocks. We’ve also obviously seen this with some of the top biotech penny stocks due to COVID vaccine excitement. You’ve also likely seen this happen in the energy sector recently.

Specifically, we saw a lot of excitement stemming from the alternative energy sector. The Tesla Battery Day presentations gave some clear insight into the future of the industry with Tesla (TSLA Stock Report) helping to lead the charge. Fast-forward to this month and now we’re seeing a resurgence in things like EV penny stocks in light of recent industry optimism.

EV Penny Stocks Get A Jolt Of Energy; Time To Buy?

On Wednesday, Nio Inc. (NYSE:NIO), a former penny stock alumni, caught the attention of analysts. JP Morgan upgraded Nio to Overweight and announced a $40 price target for the former penny stock. The firm saw Nio (NIO Stock Report) as a “long-term bet” in the rapidly growing environment and specifically in the Chinese EV market. This nudge from JP Morgan analysts trickled across the entire EV sector with some “not so traditional” automotive stocks also gaining a bit of interest.

Another former EV penny stock, Kandi Technologies Group Inc. (NASDAQ:KNDI) caught a surge of trading momentum during the early morning session on Wednesday as well. Shares of KNDI stock jumped to highs of more than $8.30 on renewed optimism for the EV market via Nio’s upgrade. Kandi Technologies’ (KNDI Stock Report) subsidiary distributes electric vehicles and wholesales off-road products as well.

[Read More] 5 Top Biotech Penny Stocks To Watch Right Now

The Garland, Texas-based company discussed entry into the U.S. market during its September 29th fireside chat hosted by Water Tower Research. Kandi America is currently preparing to begin fulfillment and distribution plans in late Q4 2020.

With this, we’ve seen several penny stocks also take to the skies on Wednesday. As with many sympathy moves, follow-through is important. Will these companies be able to capitalize on the renewed interest and remain bullish in October?

EV Penny Stocks To Watch: Electrameccanica Vehicles Corp. Ltd. (NASDAQ:SOLO)

Electrameccanica Vehicles Corp. Ltd. (SOLO Stock Report) has become somewhat of a mainstay on the list of EV penny stocks (for now). What began as a questionable rumor and hype-fueled runner earlier this year has turned into a potential new entrant to the U.S. EV market. The main focus for the company isn’t necessarily to compete directly with the likes of Tesla and Nio but to etch out its own niche market. Electrameccanic is working to commercialize and roll out production of its SOLO EV.

The last few months have proven to be exciting ones for the company. Its goal has been to identify a U.S. assembly facility and engineering technical center. As of last week, the company narrowed it down to either Arizona or Tennessee. While plans are to select the finalist by November, there’s still quite a process to undergo. Electrameccanica needs to conduct site and proposal reviews and has engaged BDO USA’s Site Selection& Incentives Practice to help. Once chosen, the facility is expected to create upward of 500 new jobs.

Over the last few weeks, the company has been teasing the launch of this new SOLO EV with images and posts on Twitter. The latest came late Tuesday night with a tweet showing a rim and tire. The caption read, “Take the SOLO for a spin knowing it meets global motor vehicle safety standards.”

While it’s still early in the game, SOLO stock has built a cult-like following over the last few months. Shares were trading around $1.36 when we first began covering the company in June. Seeing how far it’s come shows the high expectations of the market right now in my opinion. It’s also worth mentioning that SOLO stock also traded as high as $6 during the early stages of this bull run in 2020.

ev penny stocks to watch Electrameccanica Vehicles Corp. Ltd. (NASDAQ SOLO stock chart)

EV Penny Stocks To Watch: Ayro Inc. (NASDAQ:AYRO)

Ayro Inc. (AYRO Stock Report) is another one of the electric vehicle penny stocks to watch right now. The company turned heads in July when AYRO stock shot up from around $3 to highs of over $8. The move came after, first some sympathy momentum stemming from Nio’s report of record deliveries in addition to Tesla’s explosive growth. While this was the spark, the explosive move came when Ayro announced it had more than doubled its factory size in Austin to 24,000 square feet. The expansion included assembly lines and engineering & product development facilities.

[Read More] Top Penny Stocks To Watch Right Now; 5 Testing October Highs

Again, like SOLO, Ayro doesn’t appear to be stepping on the toes of Nio, Lucid Motor, or Tesla. The company designs compact electric-fleet solutions for urban and short-haul markets. We’re talking about those electric vehicles scooting around college campuses, warehouses, and golf courses.

Toward the end of September, the company reached an agreement with Karma Automotive to provide manufacturing, engineering and design services to Karma. Though the final terms weren’t disclosed, it was somewhat of a significant event for Ayro. The company has formed a strategic partnership with Karma Automotive’s Innovation and Customization Center. Ayro can now leverage Karma’s manufacturing capabilities to meet its goal of delivering over 20,000 light-duty trucks and electric devliery vehicles over the next 3 years.

Shares have climbed in sympathy with the rest of the electric car stocks today. Without any other updates right now, will AYRO stock continue this trend?

ev penny stocks to watch Ayro Inc. (NASDAQ AYRO stock chart)

Automotive Penny Stocks To Watch: AutoWeb Inc. (NASDAQ:AUTO)

AutoWeb Inc. (AUTO Stock Report) isn’t an electric car penny stock, however it does have a hand in the automotive industry. Furthermore, it has been one of the top penny stocks to watch over the last few months. When we began discussing AUTO stock, shares were trading around $2.30 in August. Since then we’ve seen, first-hand, AUTO stock take off to highs of nearly $6. Following its pullback in September, AutoWeb shares shook off the profit taking and have since reversed course this month.

One of the key points and catalysts behind the recent momentum comes from AutoWebs growth. Specifically, the company experienced improved results over previous months in July. Gross margins remained above 35% while also generating positive cash float and adjusted EBITDA. This was for both June and July. “In fact, we drove a higher level of adjusted EBITDA in July than we did for the entire second quarter,” said Jared Rowe, President and CEO of AutoWeb, in an August release.

Fast-forward to the 4th quarter and AUTO stock has not only attracted bullishness from analysts like B. Riley, Lake Street, and Barrington Research, it has also inked a new strategic relationship with QuinStreet. The two companies will leverage QuinStreet’s insurance information and provide AutoWeb’s car shoppers with real- and near-time access to insurance products. The companies plan to expand the relationship over time to include comparison shopping for loans, credit cards and other relevant products.

Wednesday saw AUTO stock continue extending a near-3-week uptrend.

automotive penny stocks to watch AutoWeb Inc. (NASDAQ AUTO stock chart)

Sign up for our FREE Newsletter and get:

  • The Beginner’s Handbook For Trading Penny Stocks
  • Penny Stock Alerts And Ideas
  • Learn To Trade Penny Stocks
  • Free Access to The Fastest Growing Highest Rated Trading Chatroom
Privacy Policy

Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 |

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Are These On Your List Of Penny Stocks Right Now? 1 Up 285% In June

4 High-Flying Penny Stocks To Watch In June 2020 There’s no question…

Best Penny Stocks To Buy This Week? 3 Under $0.99 To Watch

Penny stocks to watch under $1 this week.