4 EV Penny Stocks To Watch Right Now After The Tesla Earnings Report
Tesla earnings are out and there could be a handful of penny stocks to watch right now. The leader in electric vehicle stocks has posted a Q3 earnings beat. What’s more, is that the automaker/tech company is on pace for a profitable year. While many other manufacturing companies have gotten hurt by COVID-19 this year, Tesla remains a standout. Tesla also confirmed that delivering half a million vehicles for 2020 remains on target.
Earnings per share came in at $0.76 for Q3 beating consensus estimates of $0.56. Non-GAAP net income came in at $331 million in the third quarter. This came from strong, third-quarter revenue of $8.8 billion compared to expectations of $8.3 billion with an adjusted EBITDA of $1.807 billion. This came in slightly above its last year’s Q3 EBITDA of $1.803 billion. The company managed to produce over 145 thousand vehicles and deliver just under 140 thousand.
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But remember, Tesla (TSLA Stock Report) is more than just a “car company”. Its energy storage business is also growing. Tesla said that this operating arm reached record deployments in Q3. Even more exciting was the company’s release of some images of the new Model Y facility in Shanghai ahead of its production start. Needless to say, Tesla has been a bellwether for the sector itself.
Electric Vehicle Penny Stocks
- Electrameccanica Vehicles Corp. Ltd. (NASDAQ:SOLO)
- AYRO Inc. (NASDAQ:AYRO)
- Senmiao Technology Limited (NASDAQ:AIHS)
- DPW Holdings Inc. (NYSEAMERICAN:DPW)
If you’re looking for electric vehicle penny stocks or just small-cap EV stocks, TSLA has historically influenced sentiment in the industry. While the Tesla stock price is nowhere near the penny stocks range, there are a few stocks under $5 that might feel a ripple effect in light of the latest round of Tesla earnings.
Electric Vehicle Penny Stocks To Buy [or sell] #1: Electrameccanica Vehicles Corp. Ltd.
Electrameccanica Vehicles Corp. Ltd. (SOLO Stock Report) is one of the few, remaining electric vehicle penny stocks still under $5 right now. We’ve covered plenty of other EV stocks that have graduated to much higher prices. Nio Inc., Arcimoto Inc., and Workhorse Group, Inc. have all “left the nest”. Even some of the pick and shovel plays in electric vehicles have moved up to higher levels, like Blink Charging.
Needless to say, you’ve still got a handful of related names to keep in mind. Electrameccanica’s claim to fame is its SOLO EV. For the better part of the last 9 months, the company has been engaged with BDO USA’s Site Selection & Incentives Practice. The focus has been to identify candidates for its U.S. based assembly and engineering facility.
If you look back at the beginning of the month, Electrameccanica named Arizona and Tennessee as the two finalists for this proposed site.
“The proposed new U.S. facility is expected to create between 200 and 500 new jobs and feature a state-of-the art engineering technical center, including plans for multiple labs to support ongoing vehicle, chassis and power electronics testing as well as comprehensive research facilities.”
The company also thinks this move could result in second orders that would impact local and state economies within the selected region. The company also expects to create some 500 new jobs. While some have called this a Tesla competitor, its CEO explains just the opposite.
“We are not trying to compete with Tesla…What’s really different about this vehicle is it’s designed to solve urban driving challenges. What makes us unique is that this single-occupant vehicle is not like any other vehicle out there.”
ElectraMeccanica CEO Paul Rivera in an interview
Electric Vehicle Penny Stocks To Buy [or sell] #2: AYRO Inc.
AYRO Inc. (AYRO Stock Report) is another one of the electric vehicle stocks still trading under $5. While it isn’t necessarily the “Tesla killer,” it also doesn’t pose competition to Electrameccanica either, in my opinion. The company designs compact, emissions-free electric fleet solutions. Its vehicles are used in urban and short-haul markets. So think of things like golf carts, electric small-size trucks, etc. Furthermore, Ayro has a North American footprint with dealers in the U.S., Mexico, & Canada.
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One of the biggest developments to come about with AYRO is its deal with Karma Automotive. The two entered into astrategic manufacturing, engineering and design partnership. Karma has a state-of-the-art Innovation and Customization Center, Karma Engineering resources and the Karma Design Studio. These are going to be provided to AYRO in addition to Karma’s contract manufacturing services for AYRO’s light-duty vehicles.
The companies will take aim at delivering over 20,000 light-duty trucks and electric delivery vehicles over the next three years. According to AYRO, the value of this stands at more than $300 million. Again, AYRO isn’t necessarily direct competition for Tesla, but sympathy attention could focus on small cap electric vehicle stocks in light of TSLA stock earnings beat.
EV Penny Stocks To Buy [or sell] #3: Senmiao Technology Limited
Senmiao Technology Limited (AIHS Stock Report) had a big week already, this week. Shares of AIHS stock rallied to highs of $1.98 that capped a 5-day, 230% move in the penny stock. Despite this surge, what went up came back down on Wednesday of this week. Something to note, however, is that it wasn’t a high volume pullback but a low volume one. Does this suggest that there’s still interest left in the market? We’ll have to see how things unfold later this week as AIHS pulled back to a level much higher than where it traded at the beginning of last week.
Something that brought AIHS into the fold of electric vehicle stocks was what its CEO said earlier this year.
“So far in the second quarter of this fiscal year (our quarter ending September 30), we have signed a strategic cooperation agreement with one of the largest auto dealer groups in southwest China to increase access to electric vehicles.”
Xi Wen, Chairman, Chief Executive Officer and President of Senmiao
This week Senmiao signed a Framework Agreement with BYD Auto Sales Co., Ltd. The deal outlines the sale of BYD manufactured electric vehicles to Senmiao. The two will also joint-promote EV vehicles for China’s ride-sharing/ride-hailing markets. Via this agreement, Senmiao expects to purchase at least 5,000 vehicles between this year and next year.
EV Penny Stocks To Buy [or sell] #4: DPW Holdings Inc.
DPW Holdings Inc. (DPW Stock Report) could be another “wild car” on this list of electric vehicle stocks. While the company had more recently focused on electric vehicles, DPW has seemingly found a way to get involved in many of the “popular” headline industries at different times throughout the year.
One example is where the company’s Coolsys Technologies business focusing on the capacity for medical supplies. Earlier this year the company’s other subsidiary, DPW Financial Group announced the acquisition of two broker-dealers. There was also a stint where the company had some involvement in cryptocurrency. Regardless, “there’s no time like the present” as the saying goes.
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Earlier this summer, the company launched its new line of electric vehicle chargers. Further to this, in October its Coolsys launched a hybrid charger that can charge a wide breadth of electric vehicles from top brands. DPW also launched a residential electric vehicle wall mount charging system. Pre-orders are set to begin next month with availability early next year. In light of the increased acceptance of electric vehicle usage and states like California aiming to go fuelless in the near future, will Tesla’s growth spark some interest on “pick and shovel” companies like DPW?
