Electric vehicle (EV) stocks have been in the spotlight lately. But that’s especially the case for smaller companies like Mullen Automotive (NASDAQ:MULN) and Cenntro Electric (NASDAQ:CENN). As of this writing, CENN stock is up nearly 3% while MULN stock is declining more than 8% on the day. That’s even as the S&P 500 and Nasdaq are up about 2% and 3%, respectively.
That said, MULN stock almost tripled from its low on Oct. 18 to the high seen this week, climbing 190%. The gains for CENN stock have been much less pronounced. However, the latter EV penny stock is more in focus today. Cenntro recently “commenced shipments of the Logistar 200” to Europe.
Cenntro’s vehicle is specifically designed for the European market. According to CEO Peter Wang, Cenntro also plans to “continue to ramp up sales, production, vehicle distribution and service infrastructure for the LS200 and [its] full EV portfolio.”
Earlier this week, MULN stock was also in focus on some exciting EV news. Specifically, Mullen had “secured exclusive sales, distribution and branding rights” to the I-GO, a compact urban delivery EV. First deliveries of the I-GO are set for December in Germany. On top of this news, Mullen also recently completed its acquisition of Electric Last Mile Solutions (OTCMKTS:ELMSQ).
When it comes to EV stocks, CENN stock and MULN stock aren’t usually go-to names. Instead, the likes of Tesla (NASDAQ:TSLA), Lucid (NASDAQ:LCID) and Ford (NYSE:F) typically dominate investors’ lists. However, Mullen and Cenntro do offer a different approach to investing in this space.
Which Is Better, CENN Stock or MULN Stock?
With CENN stock trading at nearly $1 and with MULN stock trading at about half that, both names are obviously highly speculative. Both also offer market capitalizations in the $250 million range — quite small compared to most automakers. Both are early in their paths as EV producers as well, though Cenntro is now shipping vehicles.
That said, these companies each continue to operate at a loss. In a bear market and potential global recession, that raises serious concerns. Investors looking to take a position in either one must remember that they would be taking a risk by doing so.
CENN stock and MULN stock trade below $1 for a reason. But is one better than the other?
Mullen may have a bit more trouble on the competition front, given that it’s working on a crossover SUV. That has it competing against the big automakers for market share. However, recent acquisitions do set the company up for production in commercial EV trucking.
When it comes to Cenntro, the company is certified in more than 32 countries and has already made 3,600-plus deliveries. Its various vehicles may also help carve out a niche commercial role rather than compete with giants like Tesla or Ford in the consumer market. While headquartered in New Jersey, the company is already doing business in Europe as well. Europe has aggressive “green goals” and EV plans, which is a boon for Cenntro.
So, take your pick. But above all else — and at the risk of sounding like a broken record — remember that these are both speculative holdings.
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On the date of publication, Bret Kenwell did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.