Electric vehicle penny stocks have been hot because of the mania in the EV sector. Over the past year, EV stocks wildly outperformed the market. The S&P 500 is up about 80% since its March 2020 low... But check out the SPDR S&P Kensho Smart Mobility ETF (NYSEARCA: HAIL). This ETF tracks EV stocks \u2014 and it\u2019s up over 250% since March! And that\u2019s only because it doesn\u2019t include some of the biggest gainers of 2020. Parts of the sector have outdone that figure by nearly 20 times. You\u2019ve heard the saying \u2018the trend is your friend\u2019\u2026 Well, EV stocks have been a good friend to many traders over the past year. And traders have repaid the favor to some EV penny stocks. When the sector goes crazy, these cheaper stocks can get showered with attention. And some aren\u2019t just penny stocks anymore \u2014 they\u2019re real stocks. Under the Radar Electric Vehicle Stocks Everyone\u2019s heard of the big EV stocks. Tesla Inc. (NASDAQ: TSLA) had probably the craziest year in 2020. It\u2019s behaved like a penny stock ... running from its 2020 low in the $70s to a 2021 high in the $800s. It sparked the EV stock trend. Watching how Tesla trades can help you see how the rest of the EV sector will move. Founder Elon Musk has an epic social media following and his tweets can ignite stock moves. https:\/\/youtu.be\/Uip358Ma9Q0 And it\u2019s not just Tesla that\u2019s had a wild 12 months... EV charging station maker Blink Charging Co. (NASDAQ: BLNK) was in the mid-$1s until July 2020. It rose as high as $60 in the following months. Nio Inc. (NYSE: NIO) is another former EV penny stock that made the leap \u2014 from the $2s to the low $60s. If you\u2019re wondering what are the odds of another electric vehicle penny stock going parabolic \u2026 I\u2019d say study the past. We\u2019ve seen it before with some of these stocks. And given how hot the market\u2019s been in the past year, many lesser-known EV stocks are primed for action. Gotta love those sympathy plays. The rush of new traders to online brokers like Robinhood and E-Trade does something more to EV penny stocks. Millions of traders just waiting to make the next trade can cause surprising runs. The only thing they\u2019re thinking is, \u2018Can I get rich off this penny stock?\u2019 That\u2019s the wrong mindset for trading electric vehicle penny stocks \u2014 or any penny stocks. https:\/\/twitter.com\/timothysykes\/status\/1273338095597830146 You must be prepared. These stocks can move fast when news hits. Building a\u00a0watchlist with stocks you\u2019re studying is a smart way to do that. 7 Electric Vehicle Penny Stocks There are still plenty of electric vehicle penny stocks out there. Maybe some will even make the leap out of penny stock territory \u2026 but I wouldn\u2019t count on it. I\u2019m not talking about these cheap stocks because they\u2019re good investments. I like them because they can attract a lot of volume. And they\u2019ve got a TON of volatility. Stock analysts say to stay away from volatility. But if you understand the rules of penny stocking, this volatility can help your setups. But never trade with money that you can\u2019t afford to lose. Trading is hard, and most traders lose. Not comfortable trading through volatility? Check out my NO-COST \u201cVolatility Survival Guide.\u201d In four simple videos, I\u2019ll help you understand how you can prep for volatility in any kind of market. I want you to be able to use it, not fear it. Remember, you\u2019re not investing in these stocks. You\u2019re trading them. You don\u2019t buy any of the hype. You\u2019re just riding it as far as it will take you. Now, let\u2019s get to my electric vehicle stocks to watch. Reminder: this is only a list of stocks to watch. This list is in no way a recommendation to trade. Always do your own research and due diligence.\u00a0 Electric Vehicle Penny Stock #1. Ayro, Inc. (NASDAQ: AYRO) Ayro is a U.S. maker of electric vehicles. It\u2019s had a spiky ride from the $2s a year ago up to its current price in the $5s. Technically, that\u2019s slightly out of in penny stock range. But remember these sketchy stocks can fail just as fast as they spike. These spikes have made for a lot of nice trades. This one didn\u2019t work for me, personally... In early July 2020, I bought and sold AYRO in the low $3s.* The next trading day it ran into the $8s. That\u2019s OK. I often sell too soon. Trading isn\u2019t all wins or big gains. And this stock\u2019s choppiness made me uncomfortable. That\u2019s the downside of volatility. So I got out of the trade before it could go against me. If you look at this chart, the volatility\u2019s still there. That makes AYRO worth watching in the future. (*Please note: My results are far from typical. Individual results will vary. Most traders lose money. I have the benefit of years of hard work, dedication, and experience. Trading is inherently risky. Do your due diligence and never risk more than you can afford to lose.) Electric Vehicle Penny Stock #2. CBAK Energy Technology (NASDAQ: CBAT) CBAK Energy Technology is in an EV support sector. This Chinese company makes lithium batteries for all types of electric vehicles. It also makes electric tools, energy storage devices, and power supplies. In September 2020, it traded under $1. Now it\u2019s in the mid-$4s, with some massive swings on the way. This is another stock that has seemingly graduated from penny stock-dom. I think this has to do with all the new Robinhood traders \u2026 It seems a lot of them love trading low-priced stocks. I missed out on CBAT when it went supernova \u2026 Here\u2019s my video lesson from that day. Don\u2019t feel too bad for me though \u2014 I made $24,000 on other EV plays!* And I haven\u2019t stopped watching CBAT. Take a look at those recent swings. Electric Vehicle Penny Stock #3. Ault Global Holdings, Inc. (AMEX: DPW) DPW has been on my radar for a long time. Ault Global Holdings builds power systems for the military, medical, and telecommunication industries. It\u2019s an EV stock, but it\u2019s also in the defense sector \u2026 another sector that\u2019s exploded in 2020. This combination earns it a spot on my EV penny stock watchlist. (I\u2019m ignoring the run-up to $4,000 at the end of 2017\u2026 Back then it was trying to ride the bitcoin wave.) Look at this chart. There\u2019s a good amount of volatility to go with a steady uptrend. Electric Vehicle Penny Stock #4. ElectraMeccanica (NASDAQ: SOLO) If you\u2019re into EV plays, you likely know SOLO. ElectraMeccanica is a Canadian company working on a few EV lines. You may have seen its funky one-seat three-wheeler. SOLO\u2019s another stock that\u2019s been trading above $5 \u2026 And now it\u2019s on a downtrend. I caught it at the start of its post-March recovery. Again I was conservative and went for a\u00a0small gain.* https:\/\/www.youtube.com\/watch?vyUqDAsriiN8 It was a sympathy play as Nikola Corporation (NASDAQ: NKLA) was spiking. And it\u2019s had some big gains since then. Electric Vehicle Penny Stock #5. Ideanomics (NASDAQ: IDEX) Ideanomics is another EV support company, specializing in fintech. It provides financial technologies and services to help with EV adoption. It had its worst year yet in 2019. It was already trending down when the March bear market descended. Then it had its coming-out party in June, as the rest of the EV sector exploded. It climbed almost $3 in the month before settling down in the following months. https:\/\/twitter.com\/timothysykes\/status\/1273330141691875329 Now it\u2019s hanging around in the $2s and $3s. Electric Vehicle Penny Stock #6. Kandi Technologies Group (NASDAQ: KNDI) This Chinese EV company makes EV products and parts. It also makes off-road vehicles like go-karts and all-terrain vehicles. It\u2019s had a ton of volatility throughout its history. So no big surprise that it ran on the 2020 EV excitement. At the end of July 2020, it went supernova. News about its entry into the U.S. market caused it to spike from the high $3s to almost $15 in a single day! I missed my entry after its first halt. Then it got halted again. Too volatile for me\u2026 It\u2019s now graduated from the penny stock ranks and hasn\u2019t been below $5 since \u2026 It\u2019s been chopping around in the $6s and $7s. Electric Vehicle Penny Stock #7. Medigus (NASDAQ: MDGS) Medigus is a medical device company before anything else. It signed an agreement with privately-held EV company EMuze in November \u2026 and now it\u2019s part of the EV sector. Its new venture into EV \u2018micro-mobility\u2019 vehicles is pretty specialized. But it still benefits from EV sympathy plays. It was also carrying a fair bit of volatility before this November 2020 announcement. Look at that set of green days in late April 2020. MDGS was one of the plays I ended up with instead of KNDI in July. https:\/\/twitter.com\/timothysykes\/status\/1288567044569432065 It\u2019s been trending down for the last month. But we know it can run on news. Remember, former runners can run again. I\u2019ll watch to see what happens the next time news hits. See the Stocks on My Radar In a hot market, there are so many plays. You won\u2019t catch them all. That\u2019s OK. But you won\u2019t catch any if you aren\u2019t prepared... The more you watch these stocks, the more you\u2019ll understand how they behave. A good stock screener like StocksToTrade can help you spot plays and see the action play out on the chart. It even has a\u00a0paper trading function so you can try new setups without using real money. You can get a 14-day trial for only $7. Or get STT plus the game-changing Breaking News Chat for $17. (Quick disclaimer: I proudly helped design and develop StocksToTrade and I\u2019m an investor in it.) Smart preparation starts with your watchlists. I maintain several watchlists every day... \tSign up for my no-cost weekly watchlist here. \tGet my top penny stocks to watch here. \tFind out which higher-priced stocks I\u2019m watching and why here. \tLove sectors? Check out the top biotech penny stocks on my list. Never follow my picks. Use these lists to make your own watchlists. There\u2019s a lot you can learn about the process. Conclusion This watchlist should give you some ideas on what I look for in electric vehicle penny stocks. I want to see stocks with a\u00a0history of running on news. All these stocks have run for one, two, three days when a real news catalyst comes in. And since they\u2019re in a hot sector, they don\u2019t always need news to run. Sometimes EV stocks will run when Tesla is running. Sometimes they run for no reason at all. In my Trading Challenge, I teach my students to think for themselves so they can react to the market, not try to predict it. We study how the market\u2019s moving, along with the charts and so much more. And we do it every day. I share my trades and watchlists to help traders like you learn the process. The Challenge isn\u2019t about \u2018hot\u2019 stock picks. I never recommend anyone follows alerts \u2014 mine or anyone else\u2019s. Ready to learn to find your own trades and think for yourself in the markets? Apply for the Challenge here. But be ready to work. What do you think about electric vehicle penny stocks? Which EV stocks are on your watchlist? Let me know in the comments \u2014 I love hearing from my readers!