To compile this list, we focused on companies within the EV industry, sourced from ETFs trading below $10 as of April 16. From this group, we identified 10 stocks most preferred by institutional investors, including those priced under $1. The leading EV penny stocks are ranked in ascending order based on hedge fund sentiment, derived from Insider Monkey’s database of 1,009 hedge funds as of Q4 2024.
The 25% tax imposed in February on cars imported from Canada and Mexico and a larger levy imposed in March on all auto imports is anticipated to trigger a significant boost in EV prices. The impact on affordability and market dynamics is probably substantial, given that about 40% of US EV sales are imported from nations like Mexico, Korea, and Japan.
Approximately two-thirds of the electric vehicles sold in the US last year were manufactured domestically, but, like all contemporary cars, the necessary parts and components are procured from various countries worldwide. The ongoing, intense trade conflict with China, the leading global supplier of materials for EV batteries, will further complicate the market.
Additionally, there is substantial speculation that the new administration may undo the electric vehicle sales incentives established during the Biden administration, casting a shadow over the outlook for EV sales in the second quarter and beyond.
On April 16, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) confirmed the termination of its strategic partnership with technology firm Xingji Meizu Group. The termination paves the way for the transfer of digital and other assets from the joint venture, which should allow Polestar to resume sales, customer service, and distribution in the Chinese market.
Number of Hedge Fund Holders: 10
Consequently, the remainder of 2025 is expected to be a tumultuous period for electric vehicle sales in the United States, even with the launch of new products and appealing incentives. Should the new automobile tariffs remain in place, they will create a significant obstacle for numerous automakers, mainly because of the tariffs applied to steel and, crucially for EVs, aluminium.
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) remains committed to pursuing growth opportunities in the Chinese EV market as part of its long-term strategy for growth and innovation. The company is also pushing on its aggressive growth strategy that entails having five performance EVs by 2026. It’s on course to start production of Polestar 4 in South Korea in the second half of the year. It has also established a new production facility in Charleston, South Carolina.
The global electric vehicle (EV) market is on a roll despite the ever-growing tariff turmoil triggered by US President Donald Trump. That was clear as EV sales increased by 29% in the first quarter, to 4.1 million on the sale of 1.7 million units in March.
A pristine electric vehicle parked in front of a modern Gothenburg skyline.
China, which continues to lead the world in EV adoption, reported a 36% year-over-year raise in EV sales in Q1, with sales in March alone topping 1 million units, a record last seen in August 2024. Due to the minimal cross-border EV sales, China is unlikely to experience significant impacts from the US-China tariff dispute. While North American EV sales were up by 16% in the first quarter, adding to the 7.3% elevate in 2024, the market’s long-term outlook remains unclear. That’s in part to Trump’s imposition of substantial tariffs on auto parts and other equipment that automakers need to ramp up the development of EVs.
Share Price as of April 16 2025: $1.03
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