The Electric Vehicle industry is slowing down due to several macroeconomic conditions including high interest rates and low consumer spending. However, 2024 will see an improvement in the economy, and we could see demand pick up pace. Despite the slowdown, we have seen several companies report impressive delivery numbers, and this shows that quality EVs continue to sell, no matter the economic situation. But this is a highly competitive industry, and not all companies are meant to succeed. This has led to this list of EV stocks to sell.

Before you lose all your money, it is time to consider these three EV stocks to sell that are set to hit rock bottom in 2024.

Fisker (FSR)

Fisker (NYSE:FSR) is one of the top EV stocks to avoid and should never be a part of your portfolio. The company has not been able to deliver on its promises and has seen several problems with Fisker Ocean. It has recently come into trouble with the National Traffic Highway Safety Administration over braking issues. This is a serious issue and not something that car owners would take lightly.

Fisker produced 10,000 cars last year and only delivered 4,700. It has not provided any numbers for 2024 yet. It also has a massive inventory of unsold cars from 2023 and has had to cut back on the production goals in early December. This shows that the company doesn’t believe it will be able to meet the production targets.

The management provided business updates recently and has announced a Dealership Partner model with 100 dealers, but further details are awaited. Through the new dealer initiative, the company plans to sell the inventory of 2023 before the end of this quarter. 

However, I am uncertain whether it will be able to clear the inventory when there is no demand for its cars. The overall EV demand is slow and on top of that, the demand for Fisker Ocean is minimal. If the vehicles are paid for, they might sell, but it is hard to expect new orders to come in. It aims to collect $290 million by selling the inventory which will provide enough cash to continue operations.

In my opinion, these are ambitious goals, and we have already seen the company over-promise and under-deliver, so it is hard to believe that these goals will turn into a reality. FSR, a penny stock trading at $0.89 is one of the top EV stocks to sell.

Lucid (LCID)

Another stock to steer clear of in 2024 is Lucid (NASDAQ:LCID). I have already written about this in the past and I am saying this again, get rid of Lucid right away. LCID stock is already down 64% year to date, trading at $3 today, and there are little hopes of it rising.

The company failed to meet the guidance and has been burning more cash than it is generating. It used $2 billion in the first three quarters of 2023 and only had $4.5 billion at the end of the third quarter. However, it struggles to make the projected number of vehicles each quarter, and profitability is miles away. 

Lucid aims to launch the Lucid Gravity by the end of the year, but considering the growing competition in the industry, the company may not receive the response it expects. Consumers already have a wide variety of options to choose from and the market is focusing on delivery numbers. Lucid is already late to the EV race, and with the amount of cash it is currently burning, it might not be able to survive for long. 

The only reason Lucid has survived this long is due to the investment from the Saudi Arabian sovereign fund. With a 60% ownership stake in Lucid, Saudi Arabia aims to transition into clean energy and will open a factory for Lucid where vehicles will be produced and it has already placed an order for 100,000 cars.

But Reuters recently pointed out that Lucid could run into trouble due to the supply chain issues in Saudi Arabia since the country has already tried to attract automotive talent in the past but has failed. If the county’s EV dreams crash, Lucid will lose everything. 

Rivian (RIVN)

Rivian (NASDAQ:RIVN) is another unproven EV company that might not survive for long. The company has gained a lot of enthusiasm and interest due to its Amazon (NASDAQ:AMZN) partnership, but we are yet to see the numbers.

Rivian has only generated $3.8 billion in revenue and lost $5.6 billion which shows that turning profitable or even reaching a breakeven may not happen anytime soon. RIVN stock was as high as $28 in July and has been losing value since then. 

The cost of production is high, and while the losses are reducing, it will still not be able to report impressive numbers in the coming quarter. It may have enough cash for now, but the long-term picture looks blurry.

It has significant debt which leads to a high interest expense. While it produced 57,232 vehicles last year and delivered 50,122 which shows that there is demand for its vehicles but the cost of production is very high. The company will also be providing vehicles to AT&T (NYSE:T) , and this is a strong move but it is too soon to hail this move. 

Even if the company leverages production, I believe it will continue losing money throughout the year. Investors do not have the patience to sit and wait for it to report a profit. While the stock is trading at $16 today, sell it and take whatever money you can. I believe it is too risky to hold on to Rivian stock. 

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.