Throughout the pandemic, EV stocks soared on the belief that a paradigm shift was underway in the automotive space. Though that continues to hold true, it’s apt at this time to contemplate which EV stocks might be ripe for selling. A myriad of headwinds, including the economic slowdown, supply-chain constraints, and the dwindling geo-political situation, was to blame for EV stocks’ downfall last year. The EV sphere is typically considered riskier than other sectors, which led to a precipitous drop in EV stocks in 2022.

Moreover, as the sector recovers, the competition in the space is heating up, which bodes unfavorably for EV stocks. EV pioneer Tesla (NASDAQ:TSLA) is shoring up its position by slashing vehicle prices, while traditional automotive players are moving into EVs in a major way. However, EV stocks were exposed amidst the trying conditions over the past several months. Hence, with that said, let’s look at seven EV stocks to sell now.

FSR Fisker $5.02
HYLN Hyliion $1.55
RIDE Lordstown Motors $0.54
WKHS Workhorse $1.07
RIVN Rivian $13.38
GOEV Canoo $0.68
NKLA Nikola $0.82

Fisker (FSR)

EV upstart Fisker (NYSE:FSR) had set out to make waves in the EV realm offering a sustainable alternative to rival Tesla at various price points. Though it remains on track to deliver its flagship Ocean EV at competitive prices, it seems its profitability could take a major hit.

The setback stems from its primary supplier in Magna International grappling with supply-chain bottlenecks that could potentially delay production and increase the cost of production. Unfortunately, the company could not pass the additional expense on to customers on its waiting list.

However, it has completed mileage testing and is awaiting the Environmental Protection Agency’s certificate to begin production on April 20. Nevertheless, it appears Fisker is lagging behind in the EV race and will have lost potential consumers to the competition once it starts production again.

Hyliion Holdings (HYLN)

Hyliion Holdings (NYSE:HYLN) is an up-and-coming designer of electrified powertrain solutions for the commercial vehicle sector. It was among an exhaustive list of EV companies that went public during the bull market surge from 2020 to 2021. However, like many of its peers, it has yet to deliver meaningful results, pointing to a rough outlook ahead.

For one, revenue growth has been sluggish for a company with a market cap of under $290 million. It continues to report hybrid revenue, but the pace remains slow, with the production of its Hypertruck ERX slated for a late 2023 launch. It recently received an order of just 10 ERX trucks from transportation firm DSV, which is minuscule compared to its lofty market cap.

Moreover, the firm is facing high cash burn rates. With just $119 million in at the conclusion of the fourth quarter, and cash burn at $30 million per quarter, Hyliion’s liquidity position is mighty concerning. and burning roughly $30 million per quarter, Hyliion might need to sell its short-term investments by the end of 2023 to meet cash demands.

Lordstown Motors (RIDE)

Lordstown Motors (NASDAQ:RIDE) is another ailing EV maker struggling to gain ahold in the vehicle sphere. Its stock trades under 60 cents, having traded at over $10 in 2020. It recently wrapped up a deplorable quarter, reporting a loss of $104 million. Moreover, operating losses for the full year came in at a worrying $387.3 million. At the conclusion of the fourth quarter, it had only $221.7 million cash on hand.

The company’s biggest problem at this time is production. It paused production and deliveries of its Endurance pickup truck over quality concerns in February. Moreover, it had to recall 19 vehicles from the market, citing performance and quality issues. From its initial batch of 500 vehicles, the firm has sold just five of them.

Workhorse Group (WKHS)

Workhorse Group (NASDAQ:WKHS) has long been one of the losers in the EV sphere. It has been around for over a decade and delivered fewer than 100 of its flagship EV trucks. Moreover, unlike most of its peers in the EV space, it hasn’t recruited any huge customers or partners so far

It recently posted its fourth quarter results, which missed analyst estimates on both lines by a hefty margin. Its loss per share of 24 cents missed estimates by seven cents, with a 272% drop in sales year-over-year to $3.45 million.

As we advance, its outlook for 2023 remains highly uncertain, given its production issues and dwindling liquidity position. It has just under $100 million in the bank. Despite its mounting losses, it’s foraying into new competitive avenues, such as the EV charging space with its Stables and Stalls initiative.

Rivian Automotive (RIVN)

Amazon-backed EV player Rivian (NASDAQ:RIVN) is not as cash-starved as the other companies discussed in this article. In fact, it has a robust backlog of 114,000 vehicles which extends into 2024. How quickly it can fulfill its existing orders is critical to its bull case.

However, another consideration is that the EV company has stopped disclosing net reservation numbers. The metric refers to the total number of reservations a company has received for a particular product minus any refunds or cancellations. It’s arguably a more pertinent measure of gauging demand rather than looking at purely its backlog.

Rivian expects to deliver 10,000 fewer vehicles than market expectations due to supply chain disruptions, particularly for semiconductor chips. Moreover, one also has to factor in its recalls after it retracted nearly all of its vehicles in October last year. Also, the firm is unlikely to be profitable until 2027, further limiting its attractiveness.

Canoo (GOEV)

Canoo’s (NASDAQ:GOEV) downward trajectory has been nothing short of spectacular, with its share price dropping more than 80% in the past year. Unlike its peers, who have been gaining in 2023, its shares have been down more than 40% since the start of the year. Its plans for an electric van and a pick-up truck have stalled as its stock languishes in the penny stock territory.

In a desperate bid to stay afloat, the company has announced a discounted stock sale to institutional investors, looking to raise $52.5 million. Its cash reserves are at an alarming $40.3 million, while its debt load stands at a whopping $75.6 million. Compounding these woes, Canoo has faced a wave of executive departures and a looming threat of delisting from Nasdaq if its share price fails to recover.

Nikola (NKLA)

Nikola (NASDAQ:NKLA) is yet another EV stock that has faltered in the post-pandemic market. In fact, given its cash burn of over $150 million each quarter, it is flirting with bankruptcy, potentially running out of funds before its annual stockholder meeting in June.

It recently reported its fourth-quarter results, which showed a massive non-GAAP loss of $180.6 million, representing a 90% increase from the prior-year quarter. Moreover, it projects revenues of $140 million to $200 million this year, missing the $300 million mark by a mile.

Furthermore, the company is raising funds for its $100 million equity offering to stay afloat. Given its downtrodden financial situation, it is unlikely to be given another bailout by the stock market. Despite its horrible liquidity position, it partnered with ailing EV player Romeo. The merger couldn’t have come at a more inopportune time; given the macro and secular headwinds, Nikola faces significant limits on its ability to scale the production of its battery-electric trucks.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.


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