It’s the best and it’s the worst of times for the electric vehicle (or EV) space, which perhaps may make now the right time to consider which EV stocks to sell.

How can the circumstances for this nascent industry be so contrary? While sales continue to rise at a record 295,000 EVs sold during the June quarter, the auto sector also appears to have overestimated the speed with which EVs would be adopted.

EV sales growth is cooling, with EV inventory piling up on dealer lots. This does not necessarily mean the “EV megatrend” is going anywhere. Recent polls signal that interest in going electric remains high among U.S. car buyers.

Still, it may mean more headwinds in the near-term for early-stage electric vehicle makers and established automakers branching out into the space. Underwhelming revenue numbers are expected, thanks to demand being lower than anticipated, and net losses/ cash burn being higher than expected.

With this, you may want to steer clear/sell these seven EV stocks to sell. The combination of fading “EV mania,” coupled with the prospect of worsening results, likely means further declines ahead.

Ford (F)

Ford’s (NYSE:F) labor issues are the main driver moving shares higher and lower. However, even if the company and its Detroit automaker peers finalize a deal with the United Auto Workers in the coming weeks, concerns regarding Ford’s EV unit could have negative implications for the stock.

Ford’s Model E drummed up initial success in 2022, but sales in 2023 have started falling short of expectations. During July, battery electric vehicle sales fell 18% compared to the prior year’s quarter.

F trades at a premium to rival General Motors (NYSE:GM). F shares trade for 5.9 times earnings, and GM stock trades for 4.3 times earnings. Further disappointment with Ford’s EV endeavors could narrow this valuation gap, and not in a good way.

Faraday Future (FFIE)

Down significantly on a split-adjusted basis since its public market debut in 2021, it may at first seem like there’s little downside remaining with Faraday Future (NASDAQ:FFIE).

However, a look at recent headlines underscores why FFIE remains one of the top EV stocks to sell. The EV startup recently executed a reverse stock split, primarily to facilitate further rounds of funding. These additional funding rounds will undoubtedly result in additional shareholder dilution.

If Faraday takes this cash and burns through it with minimal progress in EV production, the stock will likely continue to its sharp decline. When coupled with the aforementioned EV industry headwinds, the company’s poor track record will lead to such a scenario playing out. Faraday has a future, if it manages to keep raising more money. However, this leaves FFIE shares poised to experience future losses rather than future gains.

Lucid Group (LCID)

Lucid Group (NASDAQ:LCID) has lost its place as a top early-stage EV contender over the past year. The company’s lackluster production and delivery numbers have knocked Lucid down to “EV also-ran” status.

Sure, LCID has one major factor on its side: the backing of Saudi Arabia’s Public Investment Fund (or PIF). The sovereign wealth fund owns a majority of Lucid’s outstanding shares, and is likely willing to provide additional capital. Unfortunately, money alone likely will not solve the biggest issue – Lucid’s inability to build a following.

As Louis Navellier and the InvestorPlace Research Team wrote last month, there is little to indicate that interest/demand in Lucid’s EV offerings will improve, if you own LCID stock, sell. Shares have more room to drop from here.

Mullen Automotive (MULN)

Like FFIE, Mullen Automotive (NASDAQ:MULN) has been caught in a spiral of high cash burn and high shareholder dilution, destroying shareholder value.

The next big drop for MULN stock may be just around the corner, making it one of the EV stocks to sell. As Samuel O’Brient reported last week, shares are at risk of soon losing their Nasdaq market listing. The company failed to get back into compliance by the fifth of September.

Getting delisted from the Nasdaq, and forced to drop into the over-the-counter (or OTC) market, could hurt MULN in two ways. First, fewer retail investors have access to OTC stocks. This will likely place more pressure on shares. Second, a delist could limit its ability to tap into the convertible financing it has been long dependent on to stay afloat.

Nio (NIO)

Although Nio (NYSE:NIO) has pulled back in recent weeks after spiking at the start of last month, shares in the China-based EV maker remain elevated compared to prior months.

However, this last resurgence in bullish sentiment for NIO stock could continue to recede. Yes, the company has managed to somewhat live up to past expectations. Earlier this year, the company guided for a big increase in deliveries during the second half of 2023, and that’s what played out during July and August.

Still, this may not necessarily translate into better financial results for the company. As you may recall, Nio finally entered the Chinese EV price war in June. This may be helping to boost sales, but could come at the cost of margins. Reporting a big jump in net losses last quarter, if the same thing happens for this quarter, another NIO sell-off may be in store.

VinFast Auto (VFS)

VinFast Auto (NASDAQ:VFS) only debuted a month ago, but it has already become one of the EV stocks to sell. Shares in the Vietnamese EV startup spiked significantly higher in the days following the company’s IPO on August 15th.

Going public via a special purpose acquisition company (or SPAC) merger, with the deal executed at the former SPAC’s original price of $10 per share, VFS stock zoomed from $22 per share, to as much as $93 per share. Since then, however, the stock has coughed back the bulk of these gains.

A continued decline could happen, as the initial “EV hype” surrounding VinFast calms down, and the company’s fundamentals come back into focus. Given VinFast reported revenue of $633.7 million last year, and remains well in the red in terms of profitability, the EV maker’s underlying value is likely far below the stock’s current market cap (around $68 billion).

Workhorse Group (WKHS)

Best known for its failed effort to nab the U.S. Postal Service’s new electric mail truck contract a few years back, Workhorse Group (NASDAQ:WKHS) has been stuck in “also-ran” territory ever since.

That hasn’t stopped some speculators from dabbling in WKHS stock, in the hopes that the EV maker’s other efforts, such as in the commercial drone space, will ultimately pay off. However, much like the other “also-rans,” Workhorse has done little but make insufficient progress, all while burning through hundreds of millions in cash.

Worse yet, as a Seeking Alpha commentator argued last month, just like FFIE and MULN, WKHS has been engaging in heavy shareholder dilution. This is likely to continue, following shareholder approval of plans to increase the authorized share count. As continued dilution will water down the stock to an even lower price than today (75 cents per share), consider it best to stay away.

On the date of publication, Thomas Niel did not hold (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.