3 EV Stocks in Serious Trouble

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  • Here are three EV stocks in serious trouble.
  • Lordstown Motors (RIDE): The company sold only three electric pick-up trucks in Q4.
  • Nikola (NKLA): This electric vehicle maker’s founder has been convicted on multiple fraud charges.
  • Canoo (GOEV): The company has warned that it is running out of cash due to several production setbacks.
EV stocks to sell - 3 EV Stocks in Serious Trouble

Source: shutterstock.com/Nixx Photography

A shakeout is taking place in the electric-vehicle sector. As established automakers such as Toyota (NYSE:TM) and Ford (NYSE:F) ramp up production of their electric cars, trucks and SUVs, a number of smaller start-ups are struggling mightily, and their stocks are tanking as a result. Among pure electric-vehicle companies, the wheat is being separated from the chaff. While the share prices of companies such as Tesla (NASDAQ:TSLA) and Lucid Group (NASDAQ:LCID) have soared this year, other EV makers’ stocks slid into penny-stock territory. It’s a worrisome trend, but it is part of the natural evolution of the electric-vehicle industry. It’s also a trend that looks likely to continue. Here are three EV stocks to sell.

RIDE Lordstown Motors 53 cents
NKLA Nikola $1.03
GOEV Canoo 60 cents

Lordstown Motors (RIDE)

Person holding smartphone with logo of US automotive company Lordstown Motors Corporation (RIDE) on screen in front of website. Focus on phone display. Unmodified photo.

Source: T. Schneider / Shutterstock.com

Things are not looking good for troubled electric-vehicle maker Lordstown Motors (NASDAQ:RIDE). The company’s share price has plunged 80% in the last 12 months, including a 48% decline so far this year.

The drop of RIDE stock comes as rival Tesla’s share price has gained 5o% to start 2023. Even worse, Lordstown Motors’ shares are now trading in deep penny-stock  territory at less than 60 cents per share. Two years ago, the company’s stock was trading above $25.

The extreme selloff  of RIDE stock comes as the company endures one setback after another, raising concerns about its ability to continue as a going concern. To say Lordstown Motors is struggling right now is an understatement.

The company’s recently released fourth-quarter results showed that it sold just three of its Endurance electric pickup trucks during the period, generating only $194,000 of revenue. Analysts had, on average, expected its top line to come in at $7 million in Q4.

Lordstown most recently announced that it was suspending production and deliveries of its Endurance truck due to quality problems.

Nikola (NKLA)

Image of NKLA logo on phone screen

Source: Stephanie L Sanchez / Shutterstock.com

Another EV penny stock that has been sinking is Nikola (NASDAQ:NKLA). The company hyped its first electric vehicle, a battery-powered semitruck called the “Nikola Tre.” However, a series of production setbacks have delayed the deliveries of the EVs on several occasions. Other problems include an investigation by the Securities and Exchange Commission (SEC) into securities fraud allegations at the company, and founder Trevor Milton, who is no longer with the firm, being found guilty on three counts of fraud last October.

These issues have weighed heavily on NKLA stock. In the last 12 months, the company’s share price has fallen 87%, including a 52% decline so far this year. As with Lordstown Motors, there are serious concerns about Nikola’s ability to stay in business.

The company recently announced that it would raise $100 million through a secondary stock offering, a development that has further pressured its share price. Nikola reported having $123 million of cash as of March 28.

Canoo (GOEV)

Person holding mobile phone with website of US electric vehicle manufacturer Canoo Inc. (GOEV) on screen in front of logo. Focus on center of phone display. Unmodified photo.

Source: T. Schneider / Shutterstock.com

It might be difficult to imagine an electric vehicle start-up in worse shape than Lordstown Motors and Nikola. But Canoo (NASDAQ:GOEV) is doing even worse.

Canoo’s share price has decreased 88% in the last year, including a 50% plunge so far in 2023. GOEV stock is now over  90% below where it was trading at when it made its market debut. Despite announcing plans to develop an electric van and pick-up truck, Canoo has made little progress, and its stock has suffered as a result.

In February of this year, Canoo announced plans to sell discounted shares to institutional investors in an effort to immediately raise $52.5 million. The company announced last November that it was running out of cash, with only $6.8 million of funds on hand.

Canoo has also been hit by a wave of executive departures, and GOEV stock could be delisted by the Nasdaq exchange if it can’t get its share price up. As with the other names on this list, Canoo may declare bankruptcy.

On the date of publication, Joel Baglole 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 InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/04/3-ev-stocks-in-serious-trouble/.

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