SOLO - EV Penny Stocks in Focus After Biden's $174 bln Electric Vehicle Plan

Best Electric Vehicle Penny Stocks to Watch Right Now

Electric vehicle penny stocks are shooting up today on some exciting news from the Biden administration. Before we get into it, let’s talk about what EV penny stocks are doing outside of this news. While giants like Tesla Inc. ( NASDAQ: TSLA ) remain at the forefront of the EV market, many smaller companies have come to light.

Now, we know that the future will put a major emphasis on renewable energy. And this is illustrated by the largest car manufacturers in the world like Ford, Audi, Volvo, and Mercedes, all working to produce new electric vehicles. And while you may think that only EV penny stocks are benefitting, there are plenty of penny stocks to watch that don’t manufacture electric vehicles.

This includes those working on the materials that go into batteries, mining penny stocks , and alternative electrified methods of transportation. Because of this, the industry has become extremely broad in the past few years.

Today, President Biden announced a $174 billion electric vehicle plan, which could include billions in subsidies for those manufacturing EVs.

“We’ve got to take over the world market — that’s what this is about — being the best in the world and exporting these.”

President Joe Biden

Biden is referring to China, which is becoming a major producer of EVs right now. And, with unemployment only dropping slightly in the past month or so, the potential for the electric vehicle market could mean hundreds of thousands of new jobs for the U.S. economy.

Part of Biden’s plan includes cost-sharing benefits for new battery production facilities in the U.S. And, it also includes over $100 billion in consumer rebates for those who purchase these vehicles. So, with an EV movement on the horizon, let’s take a look at three electric vehicle penny stocks to watch right now.

3 EV Penny Stocks to Watch

1. ElectraMeccanica Vehicles Corp. ( NASDAQ: SOLO )
2. United States Antimony Corp. ( NYSE: UAMY )
3. Aqua Metals Inc. ( NASDAQ: AQMS )

1. ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO)

If you’re looking for a pure-play EV manufacturer, ElectraMeccanica Vehicles could be one to watch. The Canadian designer and manufacturer of electric vehicles produces innovative and purpose-built cars for urban driving, commuting, and delivery. Its flagship vehicle is known as the SOLO, which is a three-wheeled automobile, that the company states could revolutionize the auto industry.

It’s worth noting that its subsidiary, InterMeccanica, has been building specialty vehicles for more than 60 years. But, its foray into the EV market is still relatively new. At the end of last week, SOLO reported its Q1 2021 financials along with some exciting company updates. This includes it breaking ground on an engineering technical center in Mesa, AZ. When this facility is finished, it should be able to produce roughly 20,000 SOLOs per year.

“In the first quarter of 2021, we continued making progress on several major initiatives, including finalizing customer-ready designs, increasing production throughput, optimizing logistics and supply chain management and taking additional steps towards realizing our U.S. assembly facility and engineering technical center.

With the addition of our new COO Kevin Pavlov, we have begun to lay the groundwork for scaled operations for the coming years with a continued focus on enhancing profitability and efficiency.”

CEO of SOLO, Paul Rivera

So, as an EV manufacturer and pure-play EV penny stock, SOLO could be worth watching in the coming months.

2. United States Antimony Corp. (NYSE: UAMY)

Up by around 7% at EOD are shares of the mining stock , UAMY. While the rest of the market took a dive by around 3 PM EST, shares of UAMY continued to push up. This is likely due to the announcement made by Biden and the role that United States Antimony Corp. has in the EV market.

For some context, the company is a vertically interrogated producer and operator of precious metal resources. This includes zeolite and antimony. Both of these metals are used heavily in the production of most batteries we use daily, including those put in electric vehicles.

While not much news has come out of UAMY in the past few months, this makes sense given the nature of its operations. However, in February, the company announced the closing of a sizable $14.3 million registered direct offering.

The goal with this is to use these funds to improve the infrastructure at its Mexico and Montana-based antimony installations. Additionally, it will be able to fund large studies at its Los Juarez property.

Lastly, the funds will go toward the retirement of certain debt obligations it has right now. This offering could not come at a better time as UAMY will need all the resources it can to meet future antimony needs. So with all of this in the works, it looks like UAMY is showing its potential as an ancillary EV penny stock. Whether it deserves a place in your portfolio, however, remains up to you.

3. Aqua Metals Inc. (NASDAQ: AQMS)

AQMS is another decent gainer of the day, pulling in around 5.4% by EOD. Aqua Metals is a metal recycler, working to integrate its hydrometallurgical AquaRefining technology into the mainstream. This is a process that can be done at room temperature with only water.

It emits less pollution than typical metal recycling and therefore is considered a cleaner option. These recycling machines can be used for a broad range of metals, including those that are put into batteries for EVs and other uses.

A few weeks ago, Aqua Metals announced its Q1 2021 financial results as well as some corporate updates. In the results, the company stated that it invested around $1.5 million into LiNiCo, a lithium-ion battery recycling innovator.

This is a big deal, especially considering today’s news. And, the company also announced that commenced upon a triple-net-lease-to-buy agreement for a McCarran, Nevada-based AquaRefinery with LiNiCo.

“We have had a very good start to 2021 and have taken several positive steps forward in the evolution of Aqua Metals. Most significantly, we are in advanced discussions with several strong candidates to license and implement our proprietary technology.”

Steve Cotton, CEO of Aqua Metals

All of this news is important for investors to consider as it makes Aqua Metals a larger player in the EV marketplace. Considering this, will AQMS be on your penny stocks watchlist?

Will EV Penny Stocks Continue to See Momentum?

As the EV market continues to expand, we’re likely to see greater momentum with EV penny stocks. While these companies can be quite volatile, this is par for the course with the whole list of penny stocks .

So, as an investor, you need to ask yourself what type of volatility you’re comfortable with. This ensures that there will be no surprises as it pertains to price action with your portfolio. So what do you think, will EV penny stocks continue to see momentum?