7 EV Penny Stocks That Are Better Buys Than Mullen


  • With Mullen Automotive (MULN) looking highly questionable, investors should seek better electric vehicle (EV) penny stocks to buy instead.
  • Arrival (ARVL): This startup recently locked down a deal that could help it conquer U.S. markets.
  • Canoo (GOEV): After surviving a difficult year, Canoo looks ready to rebound.
  • Read more on these overlooked penny stocks with substantial upside!
Solid State Battery for EV Electric Vehicle, new research and development batteries with solid electrolyte energy storage for automotive car industry, cathode. 3d illustration
Source: Just_Super / Shutterstock.com

For anyone seeking exposure to the electric vehicle (EV) market, it’s hard to miss the constant headlines about Mullen Automotive (NASDAQ:MULN). The micro-cap penny stock has generated plenty of controversy while declining steadily so far this year. Despite rising late last week, MULN stock remains firmly in the red for the past five days — even after announcing a new deal and making notable advancements in EV battery development. Mullen can’t seem to stay in the green for any length of time, making it a clear loser among EV penny stocks.

InvestorPlace’s Louis Navellier recently laid out the bear case against MULN stock:

“Speaking of Mullen Automotive’s shares, they’re still worth far less than $1 apiece. Last year, the Nasdaq exchange issued a noncompliance warning to Mullen Automotive. This occurred because the company’s stock had closed below $1 for 30 consecutive business days. So, now Mullen’s investors have to worry about both dilution and delisting risks.”

With all of Mullen’s problems, there has never been a better time for investors to focus on other companies in this space. The EV market is still booming, with revenue expected to reach $61.18 billion this year. More than that, recent data indicates that the market could expand at a compound annual growth rate (CAGR) of about 23% between 2023 and 2027.

That means there’s ample opportunity for investors seeking exposure to the sector, especially through newer small-cap companies. Let’s take a look at the EV plays with more to offer than Mullen and MULN stock.

EV Penny Stocks: Arrival (ARVL)

Person holding cellphone with webpage of electric vehicle manufacturer Arrival Ltd (ARVL) on screen in front of logo. Focus on center of phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

Not every company can say they held an “extraordinary shareholder meeting.” But as InvestorPlace‘s Shrey Dua reports, that’s exactly what happened with Arrival (NASDAQ:ARVL) earlier this month.

This meeting resulted in a number of resolutions, including an important share consolidation, sending ARVL stock up in the process. Additionally, the company confirmed plans to merge with special purpose acquisition company (SPAC) Kensington Capital Acquisition V (NYSE:KCGI), providing another positive growth catalyst. The SPAC merger could help the company further its plans for expansion into U.S. markets.

Of course, Arrival did announce plans for a reverse stock split. It’s true that this doesn’t usually indicate the company in question is strong. In this case, though, the move does allow ARVL stock to remain on the Nasdaq. That gives Arrival a chance to turn around and keep growing.

In the meantime, short interest in Arrival is somewhat high and could lead to a sudden surge. For a company that has fallen as far as it has, Arrival may still have the opportunity to run this year.

Canoo (GOEV)

Canoo (GOEV) logo displayed on smartphone screen as well as in background on yellow wall
Source: shutterstock.com/rafapress

Like Arrival, Canoo (NASDAQ:GOEV) has garnered plenty of negative attention as shares have fallen. But if any name on this list appears to be making a turnaround, it’s this electric van startup. GOEV stock is up almost 30% for the past month and, while it has been trending downward since February, the stock seems intent on rallying.

Canoo is taking steps toward making that happen. Earlier this month, the company announced that it closed a deal to acquire a new manufacturing facility in Oklahoma. This will allow Canoo to continue scaling operations and slowly trek toward profitability.

Despite falling in 2022, the company also reported several important partnerships. A year ago, NASA selected Canoo’s vans for use in its Artemis lunar exploration launches. A few months later, Walmart (NYSE:WMT) purchased 4,500 vans for its e-commerce business. Walmart expects to begin using these new EVs in 2023.

If that happens, it should provide an excellent catalyst for GOEV stock. With its new U.S. facility, the company should also be better equipped than ever to meet demand.

EV Penny Stocks: Fisker (FSR)

Mobile phone with company logo of US electric vehicle manufacturer Fisker Inc. on screen in front of webpage
Source: T. Schneider / Shutterstock.com

Trading for just over $6 as of this writing, Fisker (NYSE:FSR) isn’t technically a penny stock anymore. Recently, the EV producer shot up in price after announcing plans to start deliveries in Europe on May 5. While it has been a difficult month for the company, FSR stock has been rising fairly steadily this week. Its current trajectory also hints at a continued climb.

Back in February, Fisker announced a partnership with leading EV charging company ChargePoint (NYSE:CHPT). As InvestorPlace contributor David Moadel notes, that could boost both companies in the long run as market conditions improve.

Some analysts are highly bullish on FSR stock as well. Late in March, Citi analyst Itay Michaeli issued a bullish take on the EV stock and a 90-day upside catalyst watch:

“The next few months are key. If Fisker delivers on all/most near term milestones…we think the narrative can rapidly change from one of heavy skepticism today to one that embraces the Ocean’s compelling EV specs/price-points, the asset-light model and the company’s growth objectives.”

Fisker recently completed testing on its Ocean SUV, lending support to Michaeli’s bullish thesis.

Hyliion (HYLN)

A 3D rendering of a green truck in front of a blue sky.
Source: Shutterstock

A little-known company often overshadowed by other EV penny stocks, Hyliion (NYSE:HYLN) operates in an interesting portion of the sector. The company produces electric powertrain systems aimed at ultimately replacing diesel rigs.

Like other names on this list, it has been a difficult year for the company. However, Hyliion did make one highly strategic acquisition in 2022. The company acquired the KARNO — a “hydrogen and fuel agnostic capable generator” — from General Electric (NYSE:GE). InvestorPlace’s Shrey Dua reports:

“KARNO could be more efficient than hydrogen fuel cells. For Hyliion, a company known for its electrification of commercial vehicles, the generator is capable of lowering fuel costs and improving driving range. It should also enhance the vehicle’s comfort, in terms of noise, vibration, and repair frequency, compared to traditional internal combustion engines.”

Hyllion will need time to implement this promising technology. However, once it does, the company will be well-positioned to conquer a promising portion of the commercial EV market in 2023. In turn, that will give HYLN stock ample room to run.

EV Penny Stocks: Innoviz Technologies (INVZ)

LiDAR sensors show car sensing traffic around it. LAZR
Source: Shutterstock

It’s easy to dismiss a company like Innoviz Technologies (NASDAQ:INVZ). With a market capitalization of around $330 million, it hovers just above micro-cap range. After declining 35% year-to-date (YTD), INVZ doesn’t appear promising at first glance either. But if investors are willing to look more deeply, they’ll see a company with plenty of potential in a booming market.

An innovator in lidar technology and 3D-environment perception, Innoviz is one of the companies helping make EVs safer. As automakers redouble their focus on the driverless race, demand for this type of technology will only increase. Recent data indicates that the lidar market is expected to reach $4.83 billion by 2030.

Innoviz enjoys partnerships with BMW (OTCMKTS:BMWYY) and Nvidia (NASDAQ:NVDA), being part of the latter’s DRIVE ecosystem. The company boasts an impressive project pipeline and order book. For investors seeking exposure to this key component of the EV market, INVZ stock is a great opportunity if you can be patient and stomach a little risk.

Lion Electric Company (LEV)

EV stocks: Electric vehicle logo painted on a blue street
Source: Shutterstock

Like Hyliion, Lion Electric (NYSE:LEV) operates in a niche area of EV production. The company deals in electric buses and trucks.

While LEV stock doesn’t usually get much attention, Lion did see a significant catalyst in October 2022 when the White House announced a powerful incentive for school districts to replace older buses with electric ones. A piece of the cool $1 billion in awards from the government is exactly what Lion Electric needs to start making real progress.

The good news doesn’t stop there, either. InvestorPlace contributor Ian Cooper reports:

“Even better for Lion Electric, only about 1% of all school buses are all-electric as of 2021. As that ramps higher, Lion Electric could see a ‘lion’s share’ of those investments. The company also just completed the production of its first lithium-ion battery pack.”

Demand for school buses isn’t going anywhere and more and more districts are going to embrace electric transportation as the EV boom continues. That puts Lion Electric in an excellent position to continue cornering a market not many other companies have ventured into.

LEV stock is up 12% for the past month, demonstrating the type of growth investors want to see.

EV Penny Stocks: Proterra (PTRA)

Photo of charging port on electric vehicle (EV) plugged into and being charged
Source: shutterstock.com/Nixx Photography

For a micro-cap company that trades for around $1 per share, Proterra (NASDAQ:PTRA) offers investors exposure to multiple markets within the EV sector. Its holdings include EV batteries, charging infrastructure, electric buses and even drivetrains. It’s that dynamic reach that earns the company a spot on this list.

While the past year hasn’t been great for Proterra, experts still see plenty of growth potential here. As InvestorPlace contributor Larry Ramer notes, the company’s “third-quarter financial results and 2022 guidance indicate that it’s growing and should succeed over the longer term.”

It’s also worth noting that, while PTRA stock has fallen substantially so far in 2023, the company has reported growth in both its electric bus and EV charging operations. It delivered 60 buses and reported an increase of 700% in DC fast charger deliveries for its fiscal third quarter.

InvestorPlace contributor Larry Ramer predicts that this company’s charging technology could lead to 10x growth by 2030. All told, the combo of PTRA’s low price point and reach across EV subsectors could make for some enticing opportunities.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Samuel O’Brient 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.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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