While we are anticipating the electric vehicle market to pick up in the coming months, be aware that every company is not going to pick up with it. With inflation in control and Fed rate cuts to follow, we can see a higher consumer spending and this could lead to an improvement in the demand for EVs. However, some EV makers are already doomed, and there isn’t much they can do to improve the odds.

These stocks are on a downward spiral and may not pick up anytime soon. If you want to trim your losses, now is the best time to consider these electric vehicle stocks to sell.

Lucid (LCID)

EV-maker Lucid (NASDAQ:LCID) has had a rough ride. The company hasn’t been able to deliver on its promises, and the delivery numbers are disappointing. In 2023, the company delivered only 6,001 vehicles and the company has already slashed vehicles prices three times in the last seven months. It is trying to increase deliveries by cutting prices, but that hasn’t worked in favor of the company. In December, the company built only 2,391 Air Sedans and delivered 1,734.

Lucid aims to produce 9000 vehicles and this means the deliveries will be lower than that. Earlier, it predicted that it would ship 90,000 cars. The competition in the industry is growing, and Lucid is much behind the EV race.

LCID stock is down 23% year to date and is trading at $3 today. It has been on a downward spree over the past year, and there is little hope of revival. Amidst waning EV demand, Lucid will find it tough to keep fighting in the EV race.

Saudi Arabia is Lucid’s last lifeline which controls more than 60% of the company’s outstanding common stock. The company might stay afloat as long as Saudi Arabia keeps putting in money. The government has agreed to purchase 100,000 Lucid vehicles in the next ten years to drive an EV revolution. However, Lucid should be able to produce enough to meet the demand. Another agreement for the purchase of aluminium panels has led to an upward movement in the stock, but this is temporary.

Several analysts have been trimming their forecast for the stock. Lucid’s survival is risky and you should sell the stock before you lose all your money.

Rivian (RIVN)

I have never been in favor of investing in Rivian (NASDAQ:RIVN), and while many were recommending the stock, I advised people to steer clear of it. The company’s guidance and results do not match. After the recent disappointing results, Rivian isn’t going anywhere. The company is aiming to cut costs and plans to do the same through layoffs which is not the right way forward.

While the revenue surpassed expectations in the fourth quarter, the deliveries in the quarter stood at 13,972 vehicles which is a 10% drop from the third quarter. The management is aiming to produce 57,000 units this year which is in line with the production it achieved in 2023.

I believe Rivian has been surviving due to Amazon (NASDAQ:AMZN), and it is fulfilling the initial order of 100,000 custom-designed electric delivery vans. Post results, the stock hit an all-time low of $10.05 and is trading at $11.14 today. The stock has been steadily dropping since December, and there is little hope it will rally.

Rivian is in a much better position than Lucid, but there is no driving force, and the lacklustre guidance isn’t surprising either. Do not be lured by a short-lived rebound in the stock, and sell it while you can.

While the company had a decent Q4, the guidance for 2024 is disappointing, and I do not think there is enough demand for Rivian vehicles in the industry either. For an early-stage EV maker, Rivian is losing a lot of time and money in trying to increase production, and the market has become highly competitive today. If it takes a few more years to hit a breakeven point, it might have already lost the EV race to several other automakers. Avoid RIVN at all costs.

Fisker (FSR)

Like the other two EV companies, there isn’t much to like about Fisker (NYSE:FSR). Known for overpromising and under-delivering, Fisker is one company that is going nowhere. While it can make a good product, it has not been able to sell it. Fisker has made massive losses and cut back on production in 2023. The company is set to report results tomorrow, and I do not have any hopes. Rather, the stock could drop further if the results are disappointing.

It has recently received a delisting notice from the New York Stock Exchange since its average closing price has been lower than $1 for the past 30 days. While it will not be delisted immediately, but, it will regain compliance in the coming months if the stock closes on the last day of a month with a price of at least $1.

This is a problem, and one can never know how long it will last. The most worrying thing about Fisker is that you can never know how far it will drop. A penny stock today, FSR is trading at $0.68 and has been on a free fall.

In the third quarter, it produced 4,725 cars and delivered 1,097 which shows that there is no demand in the industry. While the overall EV industry is slowing, companies like Fisker have a tough time surviving. You may not be able to recover your investment, and FSR is one of the top electric vehicle stocks to sell and take home whatever you can.

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.