Penny stocks offer investors the chance to bank on the next big thing for a low price. Always on the lookout for potential plays, today’s offering is a company already taking the booming EV industry by storm. For $3.90 per share, could Arcimoto (NASDAQ:FUV) be the next name in the burgeoning electric car market?
Penny Stocks to Watch: Arcimoto Inc
The electric car industry is only beginning to see sales figures soar. While Tesla (NASDAQ:TSLA) has been around for years, its cars have been, for most of that time, a specialty. Not the norm. But recently the entire auto market has shifted to battery-powered, zero-emission cars.
The once highly exclusive Tesla now has a mass-marketed Model 3 selling in its droves in Europe, for example. Highly revered brands like Mercedes Benz and Audi are also joining the movement for fear of being left behind altogether. EV isn’t just in, it’s the evolution.
So with that in mind, is it too soon to consider penny stocks in specialty electric vehicles? Take for example a three-wheeled city utility vehicle? Or is it the right time?
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Arcimoto
Well, it seems it is the latter if we look at Arcimoto’s list of 3,018 pre-orders. The company has developed the “world’s first fun utility vehicle” and it is, of course, entirely electric-powered.
Arcimoto has developed three types of “affordable, practical, and joyful pure electric vehicles for everyday commuters and fleets.” They are the Fun Utility Vehicle (FUV), the Rapid Responder, and the Deliverator.
Let’s be aware here, though, that these vehicles have not yet hit the retail market. So we can’t be entirely sure how the response will be. Pre-orders suggest demand will be there but as the company is only “on the cusp of production start” we can’t expect sales until next quarter.
Penny Stocks to Watch
Therefore, its recent earnings report shows a lot of money going out, and very little coming in by comparison. In 2018, the company’s net loss was $11.1 million, while revenue was only $94,996 USD. But a company has to spend money to make money, and this penny stock could offer great potential for its current low price.
When these machines go on sale, investors will be able to know the true potential. But by then it could be too late—trading volume is increasing on this penny stock and interest is spiking.
Featured Image: DepositPhotos © kristt
