When investors think about penny stocks in 2023, one name is often at the top of the list. Mullen Automotive (NASDAQ:MULN) can’t stop making headlines, and they aren’t even all negative. However, no amount of positive updates has been able to keep it in the green for long. These days, investors are lucky if MULN stock stays elevated for more than a few hours at a time. Late in March 2023, shares reached a 52-week low as they dipped below the $0.9 price point. A stock can’t fall much further than that, but MULN keeps coming dangerously close. While Mullen saw shares rise yesterday on news that it had secured new funding, they have lost momentum today. As far as EV penny stocks go, it has repeatedly proven to be a loser that can barely rally in the face of good news. As InvestorPlace reports:
“At this point, it doesn’t seem likely that anything short of a Tesla (NASDAQ:TSLA) acquisition could boost MULN stock permanently. The company has done nothing but gradually trend downward for months with occasional superficial surges. Some overly optimistic traders may overhype the recent delivery news, but it is dangerous to buy into it.”
Simply put, Mullen is a name to avoid if you’re looking for EV stocks at low price points. However, there are other companies that don’t make as many headlines but are more deserving of investor attention. Competition in the EV market continues to rise, but for investors, that can mean exciting opportunities for investors who can stomach some risk. That’s not to say that every EV penny stock is a buy. Companies like Nikola (NASDAQ:NKLA) belong in the same category as Mullen as they continue trending downward and attracting bearish energy. But some microcap companies are making impressive headways in the space and helping shape the next leg of the EV race.
Let’s take a closer look at some of the best EV penny stocks to buy for investors seeking opportunities outside of Mullen.
EV Penny Stocks to Buy: Arrival (ARVL)
This company has certainly seen some turbulent market conditions, and they aren’t over yet. But Arrival (NASDAQ:ARVL) recently reported some news that may help usher in a turnaround. The British EV startup surged 40% yesterday on news of a merger. Specifically, shareholders voted to confirm Arrival merging with special purpose acquisition company (SPAC) Kensington Capital Acquisition V. While ARVL stock has come down since then, it’s clear that the company is working hard to reverse course and give investors renewed cause for optimism in 2023.
Today brought more news as Arrival confirmed its plans for a 1-for-50 stock reverse split. These decisions don’t always signal that a company is strong. However, in Arrival’s case, it is necessary, as it allows the company to continue trading on the Nasdaq. This means that ARVL stock still has a fighting chance to recover some of the ground it has lost in recent months. Additionally, the company has benefitted from high short interest and could easily find itself at the top of the r/WallStreetBets radar.
Tritium DCFC ()
If you’re looking for a play on the booming EV charging sector, Tritium DCFC (NASDAQ:DCFC) should be near the top of your list. Based in Australia, the company isn’t too well known in the U.S., but that doesn’t mean it isn’t worth watching. The firm produces DC fast charging technology, helping revolutionize the field through both hardware and software. InvestorPlace contributor Alex Sirois recently named it undervalued among penny stocks to buy for 2023. In his words:
“Now is a good time to buy DCFC stock, as Tritium DCFC recently released record earnings that forecast an even stronger 2023. The firm reported $102 million in sales in 2022, at the high end of guidance. Additionally, $73 million of those sales occurred in the second half of the year, so it’s fair to say that the company has very strong momentum.”
Tritium may be a microcap penny stock, but its influence is slowly growing. In January 2023, the firm announced a new deal with BP (NYSE:BP), described as the largest order in its history. Partnering with a European oil giant allows the small company to extend its reach into European and U.S. markets. If it continues inking these deals, Tritium could soon compete with its much larger EV-charging peers and demonstrate impressive gains.
EV Penny Stocks to Buy: Canoo (GOEV)
Like Arrival, Canoo (NASDAQ:GOEV) is an EV startup that has struggled over the past year. But it has also reported some highly positive developments recently. Yesterday, GOEV stock shot up on the news that the company had successfully secured a manufacturing facility in Oklahoma City, Oklahoma. A statement released by Canoo said it plans to significantly expand production at this new hub and employ more than 500 workers.
The company also reported that it plans to sell more shares to raise the cash it needs to continue scaling operations. Both updates helped GOEV stock rise yesterday, and it is still trending upward today.
Lots of experts have soured on Canoo since 2022 due to its frequent rapid declines. However, last year also saw Walmart (NYSE:WMT) order 4,500 Canoo vans, and NASA contracted the EV producer to provide vans for Artemis lunar exploration launches. The company kicked off 2023 by announcing a distribution deal with a prominent Saudi Arabian company. Canoo has been down but never out, and it certainly isn’t now. The company is focused on growth and seems to be taking the necessary steps to make it happen.
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On the date of publication, Samuel O’Brient did not have (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.