Electric vehicle stocks have bled many investors dry over the past few years. The incredible post-pandemic electric vehicle boom saw many EV stocks rise significantly. However, a decline started in 2022 has continued to drag on for certain electric vehicle makers.

The biggest broad-based threat EV stocks currently face is interest rates. Indeed, EVs are big-ticket purchases and often require purchases to borrow to afford the price tags associated with many top models. So, a rise in interest rates has unsurprisingly caused sales volumes to drop significantly due to high rates discouraging customers. Additionally, price cuts have become more rampant, as EV makers struggle to retain the market share they already have.

Moreover, many EV companies have sought out dilution (issuing more shares), since the cost of borrowing money has increased. A good portion of the debt raised in this sector previously was borrowed at floating rates, meaning most companies are now paying sky-high interest rates on this capital. All these factors combined make many EV stocks very unattractive right now, especially startups that are unlikely to turn profitable anytime soon.

With that in mind, here are three EV stocks to sell before they (likely) die.

Fisker (FSRN)

Fisker (OTCMKTS:FSRN) reported dismal results this past earnings season, with the company’s fourth quarter earnings per share coming in at -$1.33, missing estimates by a whopping $1.20, driven by revenue of just $200 million, which fell $110 million short of expectations. While Fisker produced 10,193 Oceans in 2023, the company only delivered 4,900 across 12 countries. That was well below its own guidance. Unsurprisingly, the company’s margins continue to be downright terrible.

Fisker is now slashing 15% of its workforce and pivoting to a new dealer model. I think the company’s management team is getting desperate now, as the stock is no longer traded on a major exchange. The company expects to deliver just 20,000 to 22,000 Oceans globally in 2024. Meanwhile, Fisker is bleeding cash and diluting shareholders into oblivion. Its convertible notes will likely convert into equity, further eroding ownership for anyone foolish enough to still be holding this stock.

In my view, Fisker’s chances of long-term survival are slim. Even if the EV maker manages to stay afloat, massive dilution means shareholders will ultimately be left holding the bag. I recommend avoiding FSR stock like the plague.

Faraday Future (FFIE)

Faraday Future (NASDAQ:FFIE) is an electric vehicle startup that has struggled to bring its flagship FF91 luxury EV to market. That flagship “luxury” EV costs $309k, which is often compared to the Tesla Model S P100D. However, EV buyers can purchase around six of Tesla’s highest-cost vehicles for $309k, and a few more if you buy an older model.

While the company finally began limited production and deliveries in 2023, I believe FFIE stock is a clear sell. Faraday Future reported a staggering net loss of $432 million for 2023. More worrisome is the fact that the company had just $2 million in cash at the end of 2023.

To fund these massive losses, Faraday Future has been significantly diluting existing shareholders. The company’s share count exploded from just 1 million shares in 2021 to over 10 million by the end of 2023. That’s an unacceptable level of dilution that has decimated existing shareholders. Notably, FFIE stock is also currently under the Nasdaq listing requirement (must trade above $1 per share) as of writing, so we’ll likely see a reverse split and even more dilution in the quarters ahead.

Even if Faraday Future manages to ramp up production (which I’m highly skeptical about given their track record of delays and mismanagement), there will likely be very little value left for equity holders after years of rampant share issuance. Run!

Rivian Automotive (RIVN)

Rivian Automotive (NASDAQ:RIVN) manufactures electric adventure vehicles like the R1T pickup truck and R1S SUV. While Rivian has made impressive strides, becoming the fifth best-selling EV maker in the U.S. with a 5.1% market share in Q1 2024, I remain skeptical about its long-term survival prospects.

The company is still hemorrhaging cash at an alarming rate. Rivian reported an earnings per share loss of -$1.24 this past quarter, which missed estimates by 7 cents, contributing to this cash burn. Although revenue surged 82.15% year-over-year to $1.20 billion (beating by $34.96 million), Rivian is not expected to turn a profit until 2029 even if it meets lofty growth expectations.

The EV sector is becoming increasingly competitive and crowded. Accordingly, I believe Rivian will struggle mightily to achieve sustainable profitability. The company has done a good job building its brand, conducting over 28,000 demo drives in Q1, a 90% increase.

However, given the company’s brutal cash burn and speculative path to profitability, I would steer clear of RIVN stock at all costs.

On the date of publication, Omor Ibne Ehsan 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.