The electric vehicle (EV) industry is evolving, and it’s important to choose wisely when investing in companies, especially when it comes to EV penny stocks, which are stocks trading for $5 or less.
While a low price alone doesn’t disqualify a stock, the EV transition is facing challenges such as affordability and range anxiety. Despite these obstacles, the sector is still worth considering for investors due to significant investments made to advance the technology.
However, caution is advised when selecting EV penny stocks, as many startups went public during a time of low interest rates. These companies will likely require substantial capital before achieving profitability.
One EV penny stock to avoid is Mullen Automotive (MULN), which has faced challenges in the market. On the other hand, ZEEKR Intelligent Technology (NYSE: ZK), a subsidiary of Geely Automotive (OTCMKTS: GELYY), has shown promise with strong vehicle delivery numbers and a focus on innovation.
Investors considering ZK stock should assess their risk tolerance and wait for the company to report its earnings before making a decision. It’s important to be cautious when investing in penny stocks, as they are often targeted by scam artists and market manipulators.
Overall, the future of EVs is promising, but investors should conduct thorough research and consider the risks before investing in any company in the sector.