To capitalize on the industry’s tremendous growth potential, EV startups have sprung up in droves.

Identifying the top electric car startups could result in multi-bagger profits for investors in the future. Consider Chinese EV companies like Nio, which have achieved a price return of more than 150% over the last three years.

Others may have similar potential, especially as the EV market is expected to rise by 17.1% to $691.5 billion by 2028.

That being said, here are three electric vehicle startups to watch this year.

Motors Atlis

Atlis Motors (NASDAQ: AMV) made headlines last month when its stock increased 200% in value during a trading session on January 11.

This EV startup’s shareholders were reminded of the company’s Nasdaq debut last year, when it climbed more than 500% in after-hours trading.

Last month, the EV truck and battery maker’s stock rose when it reported it had received two gigatonnes of preliminary orders.

Furthermore, the company revealed a 15-fold increase in daily battery output in late January since the start of mass production testing in November of last year.

Following its aggressive execution plan, the company has rapidly grown production in its Arizona facility to meet increased demand for its batteries.

According to Atlis CEO Mark Hanchett, the company has grown from producing 30 battery cells per week to producing hundreds of them on a weekly basis.

As a result, if it maintains its current growth rate, AMV stock could swiftly turn around.

REE Automotive

REE Automotive (NYSE: REE), based in Israel, supplies bespoke EV platforms for a variety of vehicles, including cars, delivery vans, buses, and trucks.

What distinguishes its strategy is that instead of needing to create a full vehicle from scratch, companies can use REE’s modular platform technology and apply their own “skin” to it.

The problem with this EV startup is that most EV manufacturers do not need to outsource production.

Furthermore, emerging EV manufacturers are struggling for exposure in a crowded market, putting REE stock in jeopardy.

The stock is down more than 90% year to date, and the company estimates operating expenses to range between $100 million and $120 million for the year.

Furthermore, cash equivalents have fallen from $295 million when the company went public to about $80 million at the end of the year.

Canoo

Canoo (NASDAQ: GOEV) is another EV company that went public through a SPAC. It had made unrealistic revenue predictions for its subscription and engineering services.

But, it has yet to generate any major revenues, and its balance sheet remains in disarray, casting doubt on its capacity to survive this year.

Canoo’s current liabilities significantly outnumber its current assets. It has only $40.4 million in cash on hand, but current obligations are $183 million.

Furthermore, its negative free cash flows and zero dollars in sales don’t help matters.

In addition, a slew of executives has left the company, further undermining its bull case.

Indeed, Canoo’s prospects are bleak, putting it in an unreasonable position to raise capital for survival.

As a result, it should probably be considered bankrupt.

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