3 EV Penny Stocks Worth Picking Up For Under $1

Electric vehicles accounted for 10% of all new car sales in 2022. This makes EV penny stocks an attractive proposition for investors. The significant upside potential of these companies offsets the risks posed by the rapidly growing electric vehicle market. In short, any EV penny stock below $1 has a chance to develop a more robust market against its established competition, due to the strong overall growth trends in this industry.

In the United States, electric vehicles accounted for 5.8% of all cars sold in 2022. While overall car sales fell 8% in the United States in 2022, electric vehicle sales increased by 2. 6%. These trends suggest that investing in vehicle electrification can be a beacon of hope in an otherwise difficult market.

That said, here are three EV penny stocks that I think are worth a speculative buy at this point in the game.

Volta (VLTA)

Volta (NYSE:VLTA) is one of the unique EV penny stocks to buy, as the shares of the company themselves are fully redeemed. The company is acquired by Shell (NYSE:SHEL) per news published on January 18. Shell will pay $169 million for the company’s charging and media networks, which it acquired at an 18% premium to the stock’s closing price on Jan. 17.

This brings Volta’s share price to 86 cents at the time of writing. The deal is expected to close in the first half of this year, meaning that VLTA shares will no longer be listed on any public stock exchange once the deal is completed. The volatility around Volta’s share price will certainly occur as shareholders decide what to do in the meantime. This volatility is likely to create price fluctuations that traders can benefit from.

The deal is a clear indication that Shell’s push towards decarbonization continues. Volta had operated independently and was subject to capital constraints that limited the growth of its interim CEO, Vince Cubbage. Shell’s larger resource base will open Volta to greater opportunities in the future. I think it’s a stock worth buying on a downside, as I like the ability to turn those stocks into Shell shares once the trade closes.

Xos (XOS)

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Xos (NASDAQ:XOS) is a promising EV stock worth considering. The company manufactures class 5 to 8 battery electric utility vehicles, fleet services and software solutions.

The company builds utility vehicles for businesses, including Loomis, a cash-in-transit company. In addition, the company also recently launched its mobile fleet management application, Xoshere Go, for customers and authorized dealers. This means that these operators will now be able to manage the performance and health of their respective fleets on the go.

Xos’ most recent third-quarter earnings show the company had $11 million in revenue. This represented a 12% increase on a sequential basis. Additionally, the company shipped 88 units, compared to 71 units in the prior quarter. However, Xos also had a net loss of $23.3 million and an operating loss of $32.2 million.

The company expects to deliver between 150 and 200 units in the second half of 2022, generating revenue of up to $25.6 million. Notably, the stock maintains an overweight rating and a target price of $3.15, well above its current price of $1.

Electrameccanica (SOLO)

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Electrameccanica (NASDAQ:SOLO) stock represents another niche electric vehicle maker. The company’s flagship SOLO vehicle is a three-wheeled electric vehicle that rivals scooters and other small utility vehicles in denser urban areas. The company approaches the market from the perspective of product suitability.

SOLO price ranges from $18,500 to $24,500. The company’s base model is aimed at consumers, while its high-end models include a cargo box and are aimed at the commercial sector.

Like Xos, SOLO stock also has a significant advantage based on its current price of around $1 per share.

The company commissioned its Mesa, AZ headquarters in December. Company leaders are working hard to consolidate all operations, including manufacturing, at this site. Additionally, the company recently reduced its workforce outside of Arizona by 57%, eliminating 98 positions. This will improve operating costs by $10 million.

Electromeccanica Vehicles recorded sales of $1.44 million during the third quarter. This represented a 12-fold improvement over the previous year and included 103 SOLO vehicles manufactured under contract, with 64 deliveries expected.

Penny Stocks

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Read more: Penny Stocks — How to make profit without getting scammed

At the date of publication, Alex Sirois did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.