The Electric Vehicle boom has already begun.
Tesla became the world's most valuable car company in just 1 year by embracing EV technology and focusing solely on the production of renewable energy vehicles.
Ever since Tesla stock soared over 700% in 2020, investors are scrambling to find the next Tesla amongst the small cap stock community.
The truth is there aren't many cheap EV stocks under $10 because many of them soared past $10 recently to new highs.
EV stocks like Arcimoto (NASDAQ: FUV), Workhorse (NASDAQ: WKHS), and others left the penny stock realm lat year but luckily there are still a few plays left.
All of the EV stocks in this article are listed on the NASDAQ or NYSE in America so you can buy them on stock trading apps like Robinhood or Webull.
Cheap EV Stocks Under $10
- Electrameccanica (NASDAQ: SOLO)
- Ideanomics (NASDAQ: IDEX)
- Kandi Technologies (NASDAQ: KNDI)
- Ayro (NASDAQ: AYRO)
1. Electrameccanica (NASDAQ: SOLO)
Electrameccanica is my favorite cheap EV stock play under $10 because the SOLO 3-wheeled vehicle is an absolute game changer.
The SOLO EV is the perfect commuter car and costs just $18,500 with a $250 reservation.
The company currently has $2.4 billion in preorders and also plans to produce 2 other EV vehicles including the Tofino and Roadster.
Now, I know what you're thinking about the looks of this vehicle. Many people say it's ugly or doesn't look great.
However, the SOLO has gotten a lot of positive reviews and people who test drive it actually enjoy driving a smaller, more economical vehicle.
Watch this SOLO EV test drive and interview with Electrameccanica's CEO:
The SOLO is perfect for commuting to work/school and running errands.
As more consumers look for cheap EV cars, I think the single seater vehicle will become more popular.
First off, it's a lot cheaper than other EVs like a Tesla.
Secondly, it's small and easy to park.
Thirdly, it looks cool and I'm always up for new innovative products that disrupt the status quo.
The company plans to deliver its first batch of SOLOs this year. They are also looking to build a SOLO factory but haven't decided on the exact location yet.
With just a market cap of $700 million, I think SOLO stock is way too cheap considering there are over $2 billion in preorders alone.
SOLO Stock Rating: Strong Buy
2. Ideanomics (NASDAQ: SOLO)
Ideanomics has picked up a lot of steam lately after the company acquired WAVE, a wireless EV charging company.
Ideanomics doesn't really produce its own EVs but serves as a holdings company that invests in EV technology & software.
The company also acquired a 24% stake in e-tractor company, Soletrac.
As Ideanomics continues to build stakes and acquire more EV players, investors could see a big return on their investment.
IDEX Stock Rating: Buy
3. Kandi Technologies (NASDAQ: KNDI)
Kandi is a Chinese EV maker & battery swap company that sells the cheapest EVs in America, the K23 and K27.
Kandi is currently selling its cheap EVs in America and signed an agreement to sell 3,000 K23 to a rideshare partner in China.
What does this mean for KINDI stock?
Kandi should benefit from consumers looking for the cheapest 4-wheeled EV available as similar to how Toyota & Honda made a fortune selling lower priced sedans in America.
KNDI Stock Rating: Buy
4. Ayro (NASDAQ: AYRO)
Ayro is another small cap EV stock that trades under $10 with lots of upside.
The company produces light, short haul EVs for commercial use and places like college campuses, work facilities.
Ayro recently completed the expansion of its Austin production facility and currently has a backlog of just under $700,000 as of Q3 2020.
Ayro is more of a speculative play considering there are no consumer EVs but they should benefit from the overall growth in EV vehicle purchases.
Ayro stock currently trades under $8 with a $200 million market cap, which seems like a lot for a company with such a small backlog.
I prefer stocks like Electrameccacina or Ideanomics much more but investors may buy up Ayro and wait patiently for its growth plans to bear fruit.
AYRO Stock Rating: Hold
Is it a Good Time to Buy These Stocks?
Cheap EV stocks under $10 offer some of the best value buys for investors who want to ride the EV boom.
If you're looking for a cheap EV play then do more research on the stocks I listed above.
These EV stocks won't get much institutional attention until they hit $15+ because they are currently under the radar.
I think Electrameccanica (SOLO) and Kandi (KNDI) could soar in the future because they produce small, cheap EVs that can be sold to the masses.
Many people are struggling from the COVID-19 recession and won't look to spend top dollar on their first EV.
Where to Buy These Cheap EV Stocks
Our recommended stock trading app is Webull. You get 2 free stocks when you open a brokerage account and deposit $100 (Worth up to $1,850).
Full disclosure: I own shares of Electrameccanica (NASDAQ: SOLO)