The Electric Vehicle industry has had a rough year. Amid high inflation, supply chain issues, and low consumer spending, the demand for EVs saw a significant drop. Several EV makers have cut their production targets and are reducing their investment in EVs. While the demand for EVs will eventually pick up, several companies could be out of business by then. If you want to trim your losses, now is the time to consider selling these three EV stocks and never touching them again. 

Fisker (FSR)

Fisker (NYSE:FSR) is all talk and no action. While the EV industry has grown over the past two years, we have only seen Fisker overpromise and underdeliver. FSR stock was as high as $28 in early 2021 but has lost most of its value and is trading at $1.62 today. It is down 76% year to date and down over 60% in the past month. The main reason behind the drop is the inability to meet production timelines and investor expectations. Fisker’s management has made several claims about increasing production to meet the targets, but they were just claims. 

The company also cut the production outlook recently due to a liquidity crunch. It has a high cash burn which is causing all the trouble, and the management is doing everything to keep the cash for working capital. I do not expect to see any changes in the company in 2024 due to the low revenue and high cash burn. While it is working on a new distribution strategy and also managed to sell 100 cars in a day, it is far from sustainable. 

In the third quarter, the company manufactured 4,725 cars and delivered only 1,097. This also highlights the fact that there may not be adequate demand for Fisker Ocean, and if there is no demand, no EV manufacturer can survive. It further added that it aims to deliver 300 SUVs daily by the end of this year, and there is no update if it is on track. Additionally, the company also reported a net loss of $91 million in the third quarter which was more than Wall Street expected. I think FSR is one of the top EV stocks to avoid. 

Lucid (LCID)

Another EV stock to avoid at all costs is Lucid (NASDAQ:LCID). The company has disappointed investors in the recent quarterly results and despite a few positive news, the stock hasn’t bounced back. LCID stock hit a new all-time low this month and is trading at $4.58 and there is little hope for revival. The company launched a new vehicle model, Gravity which couldn’t catch the investor’s interest due to high cash burn, delivery issues, and lack of progress. It sells premium cars that are priced higher than several other EVs available in the market today. 

Until now, Lucid had only one vehicle, Lucid Air, and with the launch of Gravity, it aims to offer a wider choice to consumers, but I am unsure whether it will be able to meet the production demands. The company has consistently disappointed the market, and this year has been specifically rough. In the third quarter, it reported deliveries of only 1,457 vehicles and a production of 1,550 vehicles. 

The losses were lower than expected but the management lowered its guidance for the year. One major red flag for me is the company’s heavy dependence on Saudi Arabian investment. To cover the losses, the company regularly turns towards the equity markets and raises more capital. This isn’t the right way of doing business. It is burning more cash than it is generating with each car. 

If something goes wrong and the Saudi Arabia Public Investment Fund stops its investment in the company, Lucid could be in serious trouble. The future doesn’t look bright for Lucid, and I do not think it will be able to report better delivery or production numbers in the coming quarter.  

Polestar Automotive (PSNY)

As compared to the other two EV makers in the list here, Polestar Automotive (NASDAQ:PSNY) has a global presence and sells across 27 markets. It is also finding trouble to hit the delivery targets and I do not think it has the potential to soar in the coming quarters. The company has already lowered the guidance twice this year and aims to deliver 60,000 vehicles, down from the previous target of 80,000. The company is having trouble with cash and might have to raise money to remain afloat. 

The third quarter results were disappointing with an operating loss of $735 million over the past nine months, up from the prior loss of $709 million in the same timeframe last year. Its Q3 revenue came in at $613 million, and the net loss stood at $155 million. PSNY stock is down 58% year to date and is trading at $2.24 right now. 

Polestar has a new model, Polestar 4 under production and it aims to expand the product line up. However, I am unsure whether it will be able to turn profitable anytime soon. The market is already crowded with several players, and Polestar doesn’t have anything that sets its vehicles apart from the rest. 

While my InvestorPlace colleague Faisal Humayun is bullish on Polestar, I do not think that the new models and cost-cutting measures will do much good for the company. It is best to stay as far away from the stock as possible. There are several other EV stocks to consider instead of PSNY. 

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.