The Electric Vehicle industry is nothing like it was in 2022. This year has been difficult and many EV makers are glad that it is coming to an end. With high-interest rates, rising inflation, and low consumer spending, the demand for EVs has dropped. Several EV makers had to trim their production targets and restrict spending. There are several concerns about the market weakening at the start of 2024 due to limited consumer spending. The economy will improve in the future and we might see EV demand pick up but for now, here are three beaten-down EV stocks to sell which show no future. 

EV stocks to sell: Fisker (FSR)

Investors had high hopes with Fisker (NYSE:FSR), but the company hasn’t been able to deliver yet. FSR stock has had a difficult year, and despite gaining in the past week, it is still far from the market expectations. FSR stock is down 74% year-to-date and is trading at $1.78 today.

The company has had to face several difficulties and it also delayed the release of its third-quarter report. When it comes to EVs, the one thing investors want to see is the delivery numbers. This is where Fisker has been lagging. It started with ambitious plans to scale up the volume but has been unable to do so. The company also shared that there were material weaknesses in its financial controls and this could be the reason behind the delayed financial reporting.

Fisker delivered just 1,100 EVs in the third quarter, and while the management says that it has ramped up the pace of deliveries, we are yet to see it in action. Despite producing 4,725 vehicles, it delivered only 1,100 which is a sign that there is not enough demand for its cars. 

Even if there is an improvement in deliveries, it will only be incremental, and we may not be able to see a significant impact on the revenue. It has a long way to become profitable, and scaling up production is easier said than done. Let Fisker prove itself before you bet your money on it. 

If you own FSR stock, sell it while you can and trim your losses. If you are considering investing in the stock, this is one of the top EV stocks to avoid.

Lucid (LCID)

Lucid (NASDAQ:LCID) is a luxury EV maker that aims to cater to a premium clientele, and I think it is overhyped. The company hasn’t been able to deliver or thrive in the competitive EV industry. Lucid faces massive competition from some of the well-established players in the industry and it has limited scope for global expansion. 

One big reason to sell the stock is that the company is heavily dependent on investment from Saudi Arabia. To cover for the massive losses, the company had to turn towards equity markets and raise more capital. Due to this, Lucid remains one of the electric vehicle stocks to avoid.

It is burning more cash than it is generating and this is a big sign to stay away from the company. It had to raise capital from Saudi Arabia’s Public Investment Fund to survive. This isn’t the right way to conduct business. LCID stock is exchanging hands at $4.36 today and is down 29% year-to-date. It is down 57% in the year and has been only moving downwards since July.

Another reason to avoid this stock is the demand. Lucid manufactures high-end luxury cars which could start from $80,000. But with low consumer spending and the slowing demand, it is hard to expect that consumers will want to invest in a Lucid car. The demand doesn’t seem to pick up and in the third quarter, it delivered less than 1,500 cars. Management has also lowered the full-year guidance on the shipments. 

The company needs to sell more to earn revenue and reduce cash burn but this cannot be achieved overnight. For now, if you own the stock, sell it before it crashes and avoid investing in the company until you see the numbers improve. 

Nikola (NKLA)

Next on my list of the EV stocks to sell is Nikola (NASDAQ:NKLA). The company built a prototype vehicle but is far from commercial production. It does have a factory but not enough funds to start attempting to produce vehicles.

Besides the competition in the industry, Nikola also has massive losses, a poor balance sheet, and a bad business reputation. The company has had a rough ride. NKLA stock was once trading as high as $65 in June 2020 and is at $1 today. 

In the third quarter, the company began the manufacturing of its hydrogen fuel cell electric trucks and is looking to pivot from the battery electric semis it used to produce. It had to recall around 200 such trucks recently and the rectification of the safety issue in these trucks cost a whopping $62 million. For a company that is already making operating losses, this expense isn’t good news.  

Its financials may have improved as compared to the first quarter of the year, but it will need a lot of money to succeed. First of all, it needs the infrastructure to be able to manufacture trucks, and it will then need to ensure that there is enough demand in the market.

The company will have to maintain a certain standard to ensure that there are no issues and that consumers are satisfied with what they are receiving. These risks should be at the top of your mind before you invest in Nikola.

On the date of publication, Vandita Jadeja 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.