Best EV Penny Stocks to Buy in 2025: Tips for Success

The EV market is still growing, and smaller companies are trying to carve out a place alongside giants like Tesla and Rivian. Many of these stocks trade under $5, making them penny stocks—high-risk, high-reward plays that traders look at for fast moves. The EV industry depends on innovation, battery advancements, and infrastructure expansion, but not all companies in this space will survive.

Penny stocks can be explosive, but they’re also unpredictable. That’s why they should be traded, not held long-term. Some of these stocks might spike on news about partnerships, new vehicle models, or government incentives. Others might collapse due to supply chain problems, funding issues, or regulatory setbacks. Smart traders look for momentum, liquidity, and volume when trading EV penny stocks—waiting for the right setup instead of gambling on hype.

Here are some of the most interesting EV penny stocks for 2025.

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

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Kandi Technologies Group, Inc. (NASDAQ: KNDI)

Kandi Technologies focuses on small, affordable EVs and battery-swapping technology. The company has been expanding its footprint in the U.S. while maintaining strong sales in China, where it has a larger market share. Battery swapping could give Kandi an edge if it gains traction in the EV industry.

For traders, Kandi is a classic penny stock—low-priced, volatile, and sensitive to news about vehicle deliveries, government incentives, and partnerships. It’s had major price swings in the past and could see more in 2025, especially if EV demand increases. Watching liquidity and momentum is key when trading stocks like this.

Workhorse Group Inc. (NASDAQ: WKHS)

Workhorse designs electric delivery trucks, a segment that’s growing as more businesses push for sustainability. The company has struggled with production delays and financial challenges, but new contracts could change that. Investors have been watching to see if Workhorse can secure major fleet deals.

Penny stocks tied to EVs can see big swings based on order announcements and regulatory updates. If Workhorse shows improvement in manufacturing and delivery numbers, traders could see short-term spikes. However, past volatility proves that this stock can move both ways quickly.

CBAK Energy Technology, Inc. (NASDAQ: CBAT)

CBAK Energy focuses on lithium-ion battery production, which is essential for the EV industry. Battery suppliers often benefit from rising EV demand, especially as automakers look for cheaper, high-performance energy solutions.

For traders, CBAT is appealing because battery companies can catch momentum from broader EV trends. News about research developments, supplier contracts, or government funding for green energy could create trading opportunities. Monitoring industry trends and overall market sentiment is important when dealing with battery stocks.

American Lithium Corp. (NASDAQ: AMLI)

Lithium is a critical material for EV batteries, and American Lithium is working to increase supply to meet growing demand. Mining stocks can be speculative, but they often see price spikes when supply shortages or government incentives come into play.

Traders should watch for news about lithium supply agreements, global demand shifts, and funding for mining projects. If lithium prices rise or supply tightens, stocks like AMLI could move quickly. However, as with any resource-based stock, price swings can be extreme.

Arcimoto, Inc. (NASDAQ: FUV)

Arcimoto is a niche EV company focused on three-wheeled electric vehicles designed for urban transport. Its vehicles are different from traditional EVs, which gives it a unique market position, but sales have been inconsistent.

For traders, Arcimoto offers opportunities based on hype and product launches. The company’s ability to scale production and secure funding will determine whether it stays in the game or fades like many other small EV companies. Short-term spikes can happen if the company announces major expansion plans or strategic partnerships.

Why Invest in EV Penny Stocks?

EV penny stocks offer exposure to an industry with strong long-term growth potential. Companies in this space are pushing for innovation in battery technology, vehicle production, and charging infrastructure. Government incentives and sustainability goals add to the investment opportunities.

However, investing in EV penny stocks is risky. Many of these companies burn cash quickly and depend on external funding. That’s why trading them is often a better strategy than holding them long-term. Smart traders focus on price action, liquidity, and momentum rather than blindly betting on the EV trend.

Small-cap companies in the EV sector are chasing massive market shifts, and if they execute well, early investors can see huge returns. But you know the saying—in for a penny, in for a pound. If you’re in this game, you should also be keeping an eye on the sector momentum set by bigger EV stocks. Check out the best EV stocks here.

Best EV Penny Stocks Under $1

Some EV penny stocks trade under $1, making them even more speculative. These stocks can experience extreme price swings based on news, hype, or trading volume.

While the upside can be massive in a short-term rally, stocks under $1 often face financial trouble, potential delisting, or even bankruptcy. Traders should be aware of the risks and only take positions when the setup makes sense.

Can’t get enough EV penny stocks? Here are 7 more to put on your watchlist! 

Tips to Choose the Best EV Penny Stocks

The best EV penny stocks for trading have high volume, liquidity, and clear catalysts. Stocks with low volume can be difficult to trade, leading to poor fills and large spreads. Watching company news, earnings reports, and regulatory developments can provide trading signals.

Understanding the broader EV market also helps. If lithium prices are rising, battery stocks may see more interest. If governments introduce stricter emissions rules, small EV makers could benefit. Being aware of these trends helps traders make better decisions.

Risks and Rewards of Investing in EV Penny Stocks

The biggest reward in trading EV penny stocks is volatility. A well-timed trade on a stock with momentum can lead to fast gains. However, that same volatility makes them dangerous for those who don’t have a plan.

Many EV penny stocks struggle with profitability, supply chain issues, and funding challenges. Some will run out of cash and collapse. That’s why risk management is key—knowing when to take profits and when to cut losses.

EV penny stocks move fast—both ways. A good run can double or triple your money, but a bad one can wipe you out. This isn’t a market for guessing. You need to know what you’re buying and when to get out. Some traders balance penny stock risks with bigger EV plays like Tesla. If you’re thinking about adding TSLA to your portfolio, here’s a guide on how to buy it. Learn how to buy TSLA stock here.

Key Takeaways

• EV penny stocks are highly volatile and should be traded, not held long-term.
• The best setups come from momentum, liquidity, and strong catalysts.
• Government policies, industry trends, and supply chain issues can all impact price movement.
• Risk management is critical—these stocks can move fast in both directions.

This is a market tailor-made for traders who are prepared. EV stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

I recommend that you pay close attention to the first days of this possibly historic bull market.

If you want to know what I’m looking for—check out my free webinar here!

Frequently Asked Questions

Are EV penny stocks a good investment for beginners?

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EV penny stocks are not ideal for beginners because of their extreme volatility and unpredictable price swings. They require active trading skills, discipline, and a solid understanding of risk management. Beginners should start by learning how to trade larger, more stable stocks before attempting to trade high-risk penny stocks.

What industries drive the growth of EV penny stocks?

EV penny stocks depend on several industries, including battery manufacturing, green energy, and automotive production. Suppliers of key materials like lithium, as well as companies developing charging infrastructure, also play a role. Shifts in energy policies, supply chains, and global demand can influence the performance of these stocks.

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Can EV penny stocks outperform larger EV companies?

In the short term, EV penny stocks can have higher percentage gains than larger EV companies. A stock trading under $1 can double or triple in a short period, something Tesla or Rivian is unlikely to do. However, these gains are not sustainable, and many penny stocks ultimately fail. That’s why trading them for short-term moves is a better approach than long-term investing.

How does the stock market impact EV penny stocks?

The stock market influences EV penny stocks through overall investor sentiment, sector trends, and liquidity conditions. When financial markets are strong, traders are more willing to take risks on speculative shares, leading to higher volatility in penny stocks. Economic downturns, on the other hand, can reduce trading volume and drive share prices lower as investors move toward safer assets.

Should EV penny stocks be part of a long-term investment strategy?

EV penny stocks are not ideal for long-term investment decisions because they are highly speculative and often lack stable financials. Unlike blue-chip stocks listed on the NYSE, these companies face constant funding challenges, and many struggle to achieve profitability. Instead of holding for years, traders should focus on short-term momentum opportunities within the automotive industry.

Can ETFs provide exposure to EV penny stocks?

Most EV-focused ETFs concentrate on larger manufacturers, but some include small-cap stocks with exposure to battery technology, charging infrastructure, and resources needed for EV production. Unlike trading individual penny stocks, investing in funds can spread risk across multiple companies within the sector. However, hedge funds and institutional investors tend to avoid extremely low-priced stocks, which means ETFs might not capture the most speculative plays.

What economic factors affect EV penny stocks the most?

EV penny stocks are heavily influenced by the economy, including interest rates, government incentives, and supply chain stability. High inflation or rising borrowing costs can make it harder for these companies to secure funding, while strong economic growth can drive demand for electric vehicles. Traders who monitor global financial trends and sector performance can better anticipate shifts in share price movements.

How can traders find the best EV penny stocks to watch?

Building a strong watchlist requires tracking company news, industry trends, and stock market momentum. Traders should look for stocks with increasing trading volume, upcoming catalysts, and a strong management team focused on expansion. Using technical instruments like moving averages and support levels can help identify potential entry and exit points.

How can traders evaluate the value of EV penny stocks?

Assessing the value of EV penny stocks requires analyzing financial information, world industry trends, and market sentiment. Unlike large-cap stocks with clear fundamentals, these companies often trade on speculation, making technical indicators and trading volume important tools. Traders should explore different options, including sector momentum and global finance trends, to find short-term opportunities in the fast-changing EV market.