A Bullish Trend For Electric Vehicle Penny Stocks Continues Growing In March
Last week’s market pullback hit the reset button for countless penny stocks. Many of these names were the center of FOMO (fear of missing out) across several social media channels, including Reddit, Facebook, and Twitter. One of the groups of penny stocks that traders were FOMOing about was electric vehicle stocks.
Last year and into 2021, the overly bullish sentiment for things like EV and green energy triggered a massive uptrend in related stocks. Believe it or not, many of the notable names among electric vehicle stocks were once trading as penny stocks; yes, this includes the beloved Nio (NYSE: NIO). In turn, traders scrambled to find “the next NIO,” “the next PLUG,” or the next “whatever” similar name to buy.
After last week’s dip, many of the overinflated names consolidated back to major technical levels. The ones I’m referring to are 50-day and 200-day moving averages. Now, at the start of March, the markets are monitoring the situation closely. Will these major moving averages hold as new support, or is a further sell-off to ensue? While time will certainly tell, what I can say for sure is that the fervor for electric vehicle penny stocks hasn’t subsided one bit at the beginning of March. Many companies with at least a little exposure to the industry are grabbing attention.
Electric Vehicle Penny Stocks Take Center Stage In March
Since this industry is still very new, it’s understandable that the markets are attracted to companies undertaking this early stage expansion. With the likes of Tesla and, now Lucid Motors emphasizing a need for more electric vehicle options, momentum is beginning to build once again. Will this sentiment remain a factor in March? We’ll have to see but in the meantime, here are a few hot penny stocks to watch that’ve gained in light of recent EV industry momentum.
Electric Vehicle Penny Stocks To Watch
- Aqua Metals Inc. (NASDAQ: AQMS)
- Medigus Ltd. (NASDAQ: MDGS)
- Ault Global Holdings Inc. (NYSE: DPW)
- Ideanomics Inc. (NASDAQ: IDEX)
Aqua Metals Inc.
This company was one of the hottest penny stocks to watch for the better part of the last few months. We wrote about it until it finally ended up leaving penny stock territory. AQMS traded at highs of $8.06 last month. Thanks to the market’s broad pull-back, Aqua Metals has flirted with the $5 limit of this penny stock range. Needless to say, aside from selling-off with the rest of the market, not much else has suggested a bearish sentiment surrounding AQMS stock.
At the heart of it, Aqua Metals is a metals recycling company. Its processes also include battery recycling. So you could qualify this as more of a “pick and shovel” in the world of electric vehicle penny stocks. Its recycling process allows for the extraction of valuable materials that can then be redistributed back into the industry as raw materials—things like plastics, lead, and other metallics. Aqua has also secured investment in LINICO Corporation, a cleantech lithium-ion battery recycling company, which adds a bit more excitement into the mix. There’s also been a provisional patent submitted to protect its process for applying its AquaRefining technology to plate metals used in lithium-ion batteries.
Aqua Metals recently reported its 2020 results beating its prior year’s EPS but coming up short compared to sales. However, management is optimistic about the year ahead.
“Our recent decision to enter into a lease-to-buy agreement with LiNiCo, a company focused on lithium-ion battery recycling, resulted in a shift from a planned plant sale to a strategic lease. As we announced on February 16, the arrangement created many advantages for Aqua Metals,” explained Steve Cotton, President, and Chief Executive Officer.
While it isn’t a pick and shovel company like Aqua Metals, Medigus is a bit more diversified, not having 100% exposure to electric vehicles only. The company has a wide variety of projects in its pipeline. However, for this article, we’ll focus on its EV operations.
Last month, Medigus formed a joint venture with EMuze Founders to create what it’s calling a micro-mobility EV. In particular, this EV is being designed for ‘last-mile’ applications. This news followed another EV-related headline where the Medigus subsidiary, Charging Robotics Ltd, began developing a robotic wireless charging pad for electric vehicles.
Does this mean you’ll be able to charge your car like your smartphone? According to Medigus, “an on-demand autonomous charging system is intended to be used anywhere and anytime. The wireless charging system being developed is intended to be self-aligning to electric vehicle battery chargers. The state-of-the-art autonomous Wireless Power Transfer technology, once developed, is intended to seamlessly and efficiently charge the vehicle upon demand, and it will carry the Wireless Power Transfer from charging station or charging truck to a customer’s vehicle that needs electric charging.”
While the story develops, Medigus continues to bring in new capital for operations. This week, the company officially closed its latest $8.5 million round.
Ault Global Holdings Inc.
Another company with operations not solely focused on EVs is Ault Global. The company offers a wide range of products through its subsequent companies—everything from green energy to cryptocurrency-related products & services. Again, for this article, we will focus on the EV applications from Ault. Namely, the company’s Coolisys business has just launched electric vehicle charging units. The ACEVool 7kW residential electric vehicle systems have now hit the market, and Ault announced it has already received an order for 5,000 units.
“We believe our EV charger product line will be well-positioned to address the expected rapid expansion of infrastructure required to support broad adoption of electric vehicles globally,” explained Coolisys’ President and CEO, Amos Kohn.
I will take an aside right now and say that the EV niche is one small piece of Ault Global. The company has taken up a very different model in 2021, thanks to its fundraising efforts. Ault raised over $160 million within the last 4 months so far. It has then taken this cash and deployed it using an activist investor strategy.
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Take a look at some of the filings from other public companies like NTN Buzztime (NYSE: NTN) or SilverSun Technologies, Inc. (NASDAQ: SSNT), and you’ll see what I mean. Ault Global has taken 9%+ stakes in these companies. While this isn’t really a new strategy as Ault has invested in many private businesses, this new approach now sees the company investing in publicly-traded ones.
IDEX stock has been on our watch list for months at this point. In fact, over the last 12 months, the penny stock has climbed from under 40 cents to as high as $5.53 this year. Obviously, Ideanomics suffered the same sell-off that broader markets faced late last month. Like most, it pulled back to its 50-day moving average and has been consistently holding this level as support.
As far as electric vehicles and Ideanomics are concerned, a few things are going on right now. Most recently, the company’s portfolio company, Solectrac, has been ramping up for expanding its vehicle reservation campaign. Solectrac develops all-electric tractors. According to the company, it’s the first North American manufacturer & distributor of zero-emission electric tractors. The retail prices range from $29,800 to $55,000, so we’re not talking about personal “John Deere” tractors for your front yard.
Ideanomics’ Mobile Energy Global division is also focused on electric vehicles. In this capacity, the company has focused on selling ride-hailing vehicles for the Chinese market. In tandem with this, Ideanomics is also signed a definitive agreement to acquire Wireless Advanced Vehicle Electrification, Inc. This gets the company into the electric vehicle charging niche, further expanding its integration strategy in the electric vehicle industry.