Embattled EV player Faraday Future (NASDAQ:FFIE) is in the news following a brief surge in its stock price during the recent meme stock frenzy. However, FFIE stock is now back in familiar territory, eroding shareholder value with potential bankruptcy looming. It has just $3 million in unrestricted cash, prompting its management to withdraw production target guidance for the year. Clearly, it’s a sell now, but let’s not overlook other EV penny stocks to sell ripe for offloading.

The first is ChargePoint (NYSE:CHPT), an EV charging stock that’s marked by hefty cash burn and growing losses amidst a broader-market slowdown. Then there’s Mullen Automotive (NASDAQ:MULN), another EV upstart that’s buckling under the pressure or rising costs. Finally, we have Canoo (NASDAQ:GOEV), which is burning through cash at a rapid clip, posting colossal losses each quarter.  These EV penny stocks are doomed for failure, offering hardly any upside ahead.

EV Penny Stocks to Sell: ChargePoint (CHPT)

ChargePoint is a prominent name in the EV charging market and is facing major financial hurdles. Its enduring cash burn, marked by consistent quarterly losses, has led to a sharp drop in its stock price. To put things in perspective, CHPT stock has lost over 80% in the past year and roughly 23% year-to-date (YTD). Despite growth prospects, CHPT’s financial stability is incredibly shaky, reflecting broader concerns in the EV space.

The company has missed top-line estimates in four out of the past five quarters while posting negative revenue growth in the last three. Revenues in its most recent quarter fell 18% on a year-over-year (YOY) basis to $107 million, with a 34% drop in network charging systems revenue. Moreover, its non-GAAP adjusted EBITDA loss is at a hefty $36.5 million.

In reversing its fortunes, the firm is implementing belt-tightening measures to curb costs and optimize its business model. These actions involve workforce reductions and restructuring plans. However, the effectiveness of these measures is uncertain, casting a shadow over its future financial health.

Mullen Automotive (MULN)

Mullen Automotive is another EV meme stock, like Faraday, that’s been drawing the Reddit crowd lately. However, for the most part, its investors have been licking their wounds from its deplorable financial positioning.

We’ve seen two reverse stock splits from the company in the past year, including a worrying 1-for-100 split in December last year. These measures aimed to nudge its price above the $1 threshold, but despite its best efforts, its share price has plummeted by 99% over the past 12 months.

In recent news, the company plans to venture into commercial EVs, expanding its distribution network into Eastern Europe and securing a deal to supply 40 vehicles to a Swiss company. However, its financial positioning remains grim, with it posting just $33,000 in sales against a staggering $177.3 million loss in the second-quarter (Q2). It has just $22.3 million left in its cash till, roughly 86% lower than in September last year.  Hence, it finds itself in a precarious situation, making it incredibly tough to sustain its operations.

Canoo (GOEV)

Canoo burst onto the scene during the EV SPAC boom back in 2021. Its business model showed incredible promise, with an attractive subscription-based business model and uniquely designed modular vehicles emphasizing flexibility and utility. Many felt its innovative approach would set it apart in the crowded EV market.

However, despite its bright beginnings, its financial trajectory has been troubling. Last year, the firm raked in just $886,000 in sales, overshadowed by a massive operating loss of $302 million. Though its loss is an improvement, its management doubts its ability to continue. It has just $9.6 million in its cash till, a far cry from its lofty $702 million balance in 2020.If it survives, its shareholders are likely to face further dilution as it stabilizes its finances. Hence, Canoo faces the harsh realities of financial instability, adding major uncertainty around a potential comeback scenario.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Muslim Farooque did not have (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