Thanks to a rebound in growth stocks this week, high-tech companies like Tesla (NASDAQ: TSLA) are back in the spotlight. Value stocks take a leading role as investors shift to “safer” options whenever the market gets shaky. Following a few days of uncertainty leading up to today’s employment data, growth and tech are back in the driver’s seat.
As far as Tesla is concerned, it has become the bellwether for electric vehicles. Shares of Elon Musk’s company have steadily ridden the line between “breakout” and “breakdown” over the last few weeks. However, closing out the first week of February, TSLA finished on a high note and reclaimed the $920 range once again.
Why mention this? As a bellwether stock, TSLA’s market action has helped dictate the pace of smaller EV companies with penny stocks included. Today, we watch a handful of names that have moved in concert with TSAL heading into the new month.
EV Penny Stocks To Watch For February
- Vicinity Motor Corp. (NASDAQ: VEV)
- Workhorse Group Inc. (NASDAQ: WKHS)
- ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO)
Vicinity Motor Corp. (NASDAQ: VEV)
Popular opinion might equate “electric vehicles” with consumer cars, trucks, or SUVs. But there are many more applications that electric charging in automobiles has given rise to. Vicinity Motor Corp. is a shining example of this.
The company supplies commercial electric vehicles. This includes buses, trucks, and shuttles, and 2022 has already become a big year for new company milestones. Included are deals with the likes of Proterra Inc. (a leading commercial vehicle electrification tech company) for transit buses and work trucks. There was also a $14 million order from Pioneer Auto Group for 100 VMC 1200 EV trucks. This week the company also received an order for 50 VMC 1200 EV trucks from Skydome Auto and Truck Centre.
The initial delivery for these orders is set for Q2 of this year. In Vicinity’s last update, CEO, William Trainer explained, “In Toronto alone, the city is undertaking a major expansion of its EV charging infrastructure to enable and support accelerated transition of city fleets to electric vehicles, and to further spur adoption of EVs in the greater Toronto region.”
Thanks to growing EV adoption, consumer and commercial-facing companies have gained interest.
Workhorse Group Inc. (NASDAQ: WKHS)
Shares of Workhorse Group have been pushed lower for months. Thanks to uncertainty on the company’s future following a decision by the US Postal Service and vehicle recalls, WKHS stock lost its spark. In particular, the Postal Service decided to go in a different direction for its vehicle orders. But that conversation seems to have come back into focus amid new discussion.
This week, the White House and Environmental Protection Agency began pushing the USPS to review its directive in purchasing primarily gasoline vehicles for its new mail truck fleet. In particular, the Agency sent a letter to the Postal Service wanting another hearing to review a contract with Oshkosh Corp. for new vehicles. This contract was initially announced last year and could be worth around $6 billion if Oshkosh is engaged to build the proposed 165,000 vehicles.
“The Environmental Protection Agency (EPA) has communicated grave concerns with the adequacy of the environmental review that the USPS has conducted to date.”White House Council on Environmental Quality Chair Brenda Mallory
Workhorse had proposed building an all-electric fleet for the Postal Service, winning support from lawmakers across the nation. However, Oshkosh originally won that from under Workhorse. But with the conversation coming back into focus, WKHS stock may be one of the names to watch.
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO)
Like Workhorse, ElectraMeccanic has felt the pressure of bearish sentiment in EV stock over the last several months. With mixed earnings and a generally muted industry sentiment, SOLO stock faded during the final quarter of 2021 and into 2022. There were several things mentioned by ElectraMeccanica in its last earnings update and numerous developments since.
First, the company began rolling out its SOLO flagship vehicle deliveries late last year. Revenues are expected to be recognized in its Q4 with a scaling-up plan this year. Furthermore, ElectraMeccanica is in the middle of completing a new U.S. Assembly and Engineering Technical Center in Arizona, with final touches expected by this summer. Once finished, the company should have the ability to produce up to 20,000 vehicles per year.
This month the company also explained that it would begin delivering its SOLO Cargo EV to the fleet and commercial customers in Q2. Meanwhile, management will also present in key industry and investor conferences. Next week, the first of these is at the Stifel Transportation & Logistics Conference on Tuesday and Wednesday (Feb. 8,9). Looking ahead, ElectraMeccanica also participates in the Roth Conference in mid-March.
According to CEO Kevin Pavlov, he will share updates on the company’s Asian manufacturing and the US plant, products, ad operations. Pavlov also mentioned in a February release that he would give details on ElectraMeccanica’s scaling plans for its service network and retail & fleet deliveries. In light of this and continued momentum in the EV space, SOLO could be one of the penny stocks to watch.
Top Penny Stocks To Watch For February
There are still plenty of unknowns going into the second month of 2022. With the shaky ground in the stock market today, taking things a step at a time seems prudent. Growth stocks remain volatile, and emerging sectors, including EV, tend to amplify that type of market action. However, with upcoming and recent events discussed, some of the EV names on this list of penny stocks could be on the radar for traders in February.
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