11 Small Cap EV Stocks to Invest In

4. SolarEdge Technologies, Inc. (NASDAQ:SEDG)

Number of Hedge Fund Holders: 24

SolarEdge Technologies, Inc. (NASDAQ:SEDG) is making efforts to solidify its position in the EV landscape by building on its strong foundation in solar energy solutions. While the company is known primarily for its optimized inverter systems that significantly improve the efficiency of solar photovoltaic installations, it has expanded its offerings to include EV charging stations and battery storage systems.

The charging solutions are designed to work with solar energy systems, allowing users to recharge their electric vehicles using clean, renewable energy. The integration improves convenience for users and aligns with broader sustainability goals. It ranks 4th on our list of best EV stocks to invest in.

In addition to hardware, SolarEdge (NASDAQ:SEDG) provides comprehensive monitoring and management software for both solar setups and EV charging stations. The software allows users to optimize energy usage and keep track of system performance in real-time, which is increasingly valuable as energy efficiency becomes more crucial in today’s market.

In a significant move to advance its position in the EV sector, the company completed the acquisition of Wevo Energy Ltd. in April. It is a software startup that specializes in optimizing EV charging for locations with high volumes of chargers, such as apartment complexes and public charging stations.

Wevo’s solution has already been implemented across approximately 1,000 sites in Europe, Asia, and North America, facilitating over 215,000 charging sessions. The acquisition advances the company’s capabilities in EV charging management and positions it to tap into the rapidly growing demand for efficient charging solutions.

On September 19, Mizuho lowered the price target on SolarEdge (NASDAQ:SEDG) to $35 from $40 and kept an Outperform rating. Despite the adjustments, the outlook for the company remains positive.

Mizuho noted that the company’s revenue growth and anticipated margin recovery following a period of channel destocking should provide solid support for the stock. The firm believes that its revenue targets may be conservative, with expectations of positive free cash flow by the second quarter of 2025. Concerns about inventory levels have also been described as exaggerated, suggesting that the market may be overlooking the underlying strengths of the business.