Are The Best Penny Stocks To Watch Right Now Electric Car Stocks?

Some of the best penny stocks to buy recently were those with exposure to cryptocurrencies. These include everything from Bitcoin and Ethereum to meme stocks like Dogecoin. This brought about a whole flood of tiny market trends. Everything from NFT stocks to crypto mining companies took the spotlight. With that, so did the prices of these digital assets.

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Most cryptocurrencies and crypto stocks reached new, all-time highs. As we’ve seen recently, this surge was relatively short-lived in the grand scheme of things. Does this mean that digital assets are done? Not necessarily, but when one trend cools, other trends tend to heat up.

Over the weekend, several outlets, including Reddit, StockTwits, and Twitter, began to see conversations pop up with electric vehicle stocks as the focus. It hasn’t been solely focused on Chinese electric car stocks as it was late last year. It’s more about the industry, in general. Clearly, markets haven’t had the most success with tech-related growth names over the last few weeks. The turbulence in technology stocks has sparked some uneasy tendencies for retail traders.

Regardless, there are micro-trends to consider in light of recent government initiatives. EV is one of these micro-trends. Thanks to President Biden’s electric vehicles plan, it doesn’t surprise me that EV stocks remain a sticking point. But are they worth it right now? Thanks to the tech sell-off and troubles with the global chip shortage, volatility has quickly returned to automotive stocks. Does this mean the EV’s should be avoided entirely? Not so fast. Thanks to attention stemming from the new initiatives by the US, EV stocks are now a bigger focus.

New EV Penny Stocks To Watch In 2021

We’ve seen the same names top headlines over the last year when it comes to EV. Chinese electric car stocks like Nio (NYSE: NIO) and US behemoths like Tesla (NASDAQ: TSLA) have cornered the interest of mainstream media. However, underneath the first layer of broad interest is an entire ecosystem of companies that could benefit from a plan like Biden’s $174 Billion electric vehicle proposal.

Even if we’re talking about companies that may never see a dime from the budget, sentiment can become a driving force for sector trends. We saw this sentiment-driven momentum emerge on a larger scale this year. Companies like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) surged in January. This month, they have once again become some of the hottest Reddit stocks to watch. In this article, we’re going to take a look at some of the other names in EV that have gained interest in the stock market in 2021. Will these “new penny stocks” be the best to have on your watch list in May? I’ll leave that up to you to decide.

Ideanomics (NASDAQ: IDEX)

While this isn’t necessarily one of the “new penny stocks” for readers, it may be one of the “newer” names gaining momentum in light of the EV trends in the market. Ideanomics has evolved from a company expanding an electric car brand to one that’s more of a larger holding company.

It has several brands and EV-centric products under its umbrella right now. These include everything from its MEG commercial fleet brand to its WAVE wireless charging systems for commercial & mass transit fleets. The company has also expanded its reach into things like electric tractor products and even performance electric motorcycles via its Energica company.

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With a broad range of synergistic brands under its control, Ideanomics has grown its offering over the last several quarters. In fact, interest hasn’t only come from retail traders. This quarter, analysts at Roth Capital started Ideanomics at Buy and gave it a $7 target. Analyst Craig Irwin explained that “Ideanomics has united a strategic selection of 12 companies to target the emerging growth opportunities in commercial electric vehicles and fintech. We like the stock for the rapid success of IDEX’s portfolio of commercial EV tech companies, as entrepreneur founders seem to benefit from collaborative resources and technology, also accelerating business development.”

Last week IDEX stock rose after reporting an earnings beat. The company also saw strong sales growth in comparison to estimates. Wall Street expected sales to come in around $11 million while the company reported over $32 million for the quarter. Furthermore, CEO Alf Poor explained that the company is “the healthiest” in nearly 3 years that Poor has been part of it. With a broad portfolio of EV offerings and noticeable growth, IDEX stock could be one to watch as the EV trend continues gaining interest in the market.

new penny stocks to buy Ideanomics IDEX stock chart

Kaixin Auto Holdings (NASDAQ: KXIN)

Shares of KXIN stock caught a nice move during aftermarket trading on May 21st. The penny stock had been trading sideways for the last few weeks, but Friday, it broke back above $2.60 for the first time since the first week of May. While there weren’t any immediate catalysts to point at, there are a few things to keep in mind when it comes to Kaixin right now.

The biggest interest is on its pending acquisition of Haitaoche Limited. Last month the company received approval from NASDAQ to proceed with the transaction. Furthermore, Kaixin explained that subject to certain closing conditions and shareholder approvals, the anticipated closing of the deal would be in “May 2021.”

Since that update, no further news has been released related to the transaction. However, what we do know is that once closed, Haitaoche is expected to add value to Kaixin’s offering. In particular, the company’s online retail platform has been recognized for its success in selling imported automobiles. What’s more, Haitaoche is expanding its sales system into the field of electric vehicles.

Also, keep in mind that Haitaoche has a cooperation agreement in place with Jingdong Century Trade Limited, which is best known for its online retail platform ( This could add another layer of exposure to a larger consumer base in the e-commerce auto market. It serves over 471 million active customers. So with the pending acquisition and additional agreements with the likes of, KXIN stock could be on the list of EV names to watch.

new penny stocks to buy Kaixin Auto KXIN stock chart

Tantech Holdings Ltd. (NASDAQ: TANH)

Shares of Tantech Holdings surged late last year. In fact, if you were an active reader of our articles, you would’ve seen this unfold in real-time. TANH stock climbed from under $1 to over $3.65 between June 2020 and early November. However, the music stopped after Tantech announced a deeply discounted financing, which saw the penny stock plummet to lows of $1.19.

This year has been relatively mixed for TANH, but recently, it seems to have treaded water around the $1 level. Similar to KXIN, TANH caught a surge of momentum during Friday’s aftermarket session. It ended up rallying as high as $1.22, which is a level it hasn’t traded at in weeks.

There weren’t any headlines to pair with the move—however, mounting sentiment stemming from the latest EV speculation. While most interest came from its use of bamboo charcoal for facemasks last year, the EV trend may become a larger focus for Tantech this year. In the company’s annual report last month, Mr. Wangfeng Yan, Chief Executive Officer of Tantech, added, “We will continue to leverage our leadership position in the charcoal products industry to drive revenue, profit growth, and increased operating cash flow…At the same time, we continue to build momentum in the EV market, where we currently hold more than 20 core technologies and patents about EV, including nanotechnology for raw materials for power lithium electronics, group technology of power lithium electronics, and battery management technology.”

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Will sentiment play the bigger role with TANH stock, or are there new fundamental developments that’ve stoked interest in the company? That’s a question traders will likely be deciding on if it’s on their list of penny stocks to watch this week.

new penny stocks to buy Tantech Holdings TANH stock chart

Should EV Penny Stocks Be Your Focus This Week?

Electric car stocks and, EV, in general, are trendy. This means that fundamentals typically play a supporting role, but sentiment has taken the lead so far. Given the directives that not only the U.S. but other countries are taking to support EV development, this has begun to present an interesting market opportunity.

Nevertheless, with Bitcoin and cryptocurrencies taking a back seat, several new penny stocks have come into focus. Last week EV stocks saw a bit of momentum. It will be interesting to see if that same move continues at the top of this week. Just keep in mind that when sentiment plays a role, volatility is sure to follow.

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