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Best Penny Stocks To Buy? 4 EV Stocks To Watch Thanks To TSLA Stock

There are plenty of catalysts to follow along with in the stock market today. One of them involves the electric vehicle industry. Thanks, in part, to the latest from Tesla (NASDAQ: TSLA), EV stocks are gaining ground.

Why Is TSLA Stock Up Today?

Shares of the outspoken Elon Musk’s EV company, Tesla, jumped on Friday after speculation rose regarding a House vote on a compromise spending bill for the Inflation Reduction Act. It includes over $360 billion in climate change initiatives. It also considers a tax incentive to use toward pre-owned electric vehicles. The obvious incentives could benefit electric vehicle companies and the related ecosystem.

There’s also a tax credit for new EVs despite a shortage in inventories this year. Since TSLA stock is the forerunner of the industry, it has dictated the pace. Today, that pace is heavily leaning bullish as shares reach intraday highs on Friday afternoon.

EV Penny Stocks To Watch

The trend is widespread whether you’re talking about Chinese EV stock or North American companies. Since speculation arose based on the outcome of the Inflation Reduction Act, it could rest with the ultimate outcome. Knowing this, we look at a handful of EV penny stocks to watch before next week.

  • Faraday Future (NASDAQ: FFIE)
  • Volta Inc. (NYSE: VLTA)
  • Velodyne Lidar Inc. (NASDAQ: VLDR)
  • Snow Lake Lithium (NASDAQ: LITM)

Faraday Future (NASDAQ: FFIE)

Faraday Future calls itself an “intelligent electric mobility company,” and for months, it has pushed back the production of its flagship FF 91 platform. This is one of the reasons for so much negativity until recently.

Earlier in 2022, the company said the platform’s official launch would come this quarter. News headlines have alluded to more stalling in production. Earlier this quarter, Faraday said it is negotiating with potential investors for a financing deal to capitalize and fund production activities through the end of the year. What transpired from there was a deal for up to $600 million in debt financing with one of the company’s large shareholders.

Helping boost sentient further, Faraday introduced its FFieFactory California name to accompany the new facility that will lead FF 91 EV production. Dr. Carsten Breitfeld, Global CEO of Faraday Future, explained in an August update, “Main body lines, e-coat systems and paint ovens and conveyance are all in place for start of production and we continue to build production-intent vehicles that will be used for further testing and validation.”

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Volta Inc. (NYSE: VLTA)

This article doesn’t only focus on EV manufacturers. We’re looking into the entire ecosystem, and that includes charging companies. The “gas stations” of the new climate-friendly industry, companies like Volta are looking to capitalize on a pending surge in new EVs that hit the streets in the future. Specifically, it is creating an EV charging network that also leverages the charging stations as advertising billboards to sell to businesses. For example, Michelin recently partnered with Volta to bring its “Motion For Life” campaign to Volta’s media network.

Volta’s latest earnings report shed some light on how far the company has come in the last year. It grew revenue 121% year-over-year to $15.3 million. Its media revenue increased 73% to $11.2 million during the same period. Its charging stall base has also climbed nearly 50% as the company looks to create a blueprint for urban markets like Hoboken, New Jersey.

Vince Cubbage, Interim CEO, said earlier this week that “By building not just a network of chargers, but a dual energy and digital advertising platform, we believe Volta can scale revenue even faster than the EV adoption curve – offering the quickest path to profitability and the highest revenue per station.”

Velodyne Lidar Inc. (NASDAQ: VLDR)

Like Volta, Velodyne is part of the EV ecosystem. But in this case, it isn’t solely EV-focused, though things like lidar technology are frequently paired with the industry. The company has built a portfolio of lidar technologies it deploys for robotics, intelligent infrastructure, and autonomous vehicles.

One of the recent catalysts helping propel VLDR stock other than legal news is earnings. The company reported Q2 results earlier this week, beating EPS and sales estimates. There are also potential catalysts on the horizon, as outlined by Velodyne CEO Dr. Ted Tewksbury.

“With our growth strategy defined and well underway, we are executing on several initiatives to expand gross margin and reduce costs. These actions are necessary to align our expense structure with current revenue expectations over the next 4 to 6 quarters. In parallel, we are investing selectively in strategic products that will be key to our long-term objectives.”

Later this month, the company will participate in the Needham Virtual Semiconductor and SemiCap 1×1 Conference. So if VLDR stock is on your list, keep August 25th in mind.

Snow Lake Lithium (NASDAQ: LITM)

How can you put a list of EV stock together without one raw materials company? Snow Lake Lithium is a lithium miner focused on renewable and sustainable lithium production. Its Snow Lake Lithium Project covers over 55,000 acres and has only been 1% explored. According to the company, it contains an intensified-to-date 11.1 million metric tonnes of indicated and inferred resources.

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A recent court win has put LITM stock on the radar. Philip Gross, CEO, and Chairman of Snow Lake, explained, “With resolution to this matter, we are now able to continue to focus our efforts on accomplishing our mission to become the world’s first fully electric and sustainable lithium mine and an integral component of the North American EV ecosystem…In addition, we are excited to report that our environmental baseline, metallurgy and lithium hydroxide scoping study remain underway and are progressing in accordance with our previously disclosed timeline of key milestones.”

With a rising interest in EV stocks, LITM could be on the list of penny stocks to watch heading into next week.

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