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7 Electric Vehicle Stocks to Sell Now

  • These electric vehicle stocks to sell have shed a ton of value offering little upside ahead.
  • ElectraMeccanica Vehicles (SOLO): Three-wheeled designs are unlikely to gain much traction.
  • Canoo (GOEV):  Existing shareholders are being squeezed out amidst shareholder dilution.
  • Lucid Group (LCID): Stock is down by double-digit margins with the firm failing to surpass expectations.
  • Hyzon Motors (HYZN): Sham company with unreliable financial information.
  • Cenntro Electric (NASDAQ:CENN): Continues to burn through cash at an accelerated pace.
  • Nikola (NKLA): Partnership with Romeo Power further adds to its bear case.
  • Rivian Automotive’s (RIVN): Scandal-ridden Rivian has a questionable future ahead.
electric vehicle stocks to sell now - 7 Electric Vehicle Stocks to Sell Now

Source: Shutterstock

It may be time to consider which electric vehicle stocks to sell as the outlook for EV firms continues to weaken. While 2020 provided much cause for optimism regarding this sector, last year’s horror show quickly dampened enthusiasm.

Moreover, even though EV stocks offer incredible long-term investment opportunities and appear to be a great area to focus on, the sector has become remarkably competitive.

Many legacy automakers have entered EV production, so more traditional businesses offer the same products. This increased competition has raised further concerns for EV firms, complicating their long-term trajectory. Having said that, here are seven electric vehicle stocks to sell at this time.

SOLO ElectraMeccanica Vehicles $0.64
GOEV Canoo $1.26
LCID Lucid Group $6.24
HYZN Hyzon Motors $1.51
CENN Cenntro Electric $0.40
NKLA Nikola $2.21
RIVN Rivian Automotive  $17.34

ElectraMeccanica Vehicles (SOLO)

The Solo vehicle from Electra Meccanica Vehicles (SOLO) drives through Vancouver
Source: Luis War / Shutterstock.com

ElectraMeccanica Vehicles (NASDAQ:SOLO) may have lofty aims when it comes to EVs, but the reality is far from encouraging. Its vehicles are unlikely to gain much traction due to their unappealing, three-wheeled designs compared to the market’s more stylish and sophisticated alternatives. Despite its grand ambitions, it will be challenging for SOLO to find favor among the EV giants, making it among the electric vehicle stocks to sell before they fall further.

Unfortunately, the success of ElectraMeccanica Vehicles is hindered by the many issues already plaguing other EV makers. Despite their advantages, EVs have always been expensive and scarce, costing much more than traditional petrol-powered cars.

Range anxiety is also a massive challenge as consumer hesitancy over traveling far from reliable charging stations proves difficult to mitigate. Considering all these limitations, it’s unlikely  SOLO’s three-wheeled design would gain traction.

This is especially sobering when considering that the company will likely burn through its financial reserves even at an even greater rate.

Canoo (GOEV)

Person holding mobile phone with website of US electric vehicle manufacturer Canoo Inc. on screen in front of logo. Focus on center of phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

Shares of Canoo (NASDAQ:GOEV) have tanked this year, with many investors questioning the company’s long-term viability.

Despite the setback and reduced confidence in the stock market, Canoo has made significant strides this year. The electric delivery vehicle maker signed major deals with retail giants such as Walmart, proving that the business can still attract some attention, even during these challenging times.

The situation at Canoo is becoming increasingly dire as the company relies more and more on shareholder dilution to raise cash. Existing shareholders are being squeezed out as new stock is issued, diluting their ownership stake. The financial health of Canoo is a major concern that is likely to complicate the firm’s long-term positioning.

Lucid Group (LCID)

Closeup of the Lucid logo seen at a Lucid showroom in Millbrae, California. LCID stock.
Source: Tada Images / Shutterstock

Lucid Group (NASDAQ:LCID) has been making exciting strides in the premium EV market until recently when its production targets took a significant hit.

The company has endured further turbulence after failing to reach expected quarterly results and noting a drop in vehicle reservations. These disappointing developments have thrown the company’s prospects into doubt, leaving many industry watchers questioning Lucid’s positioning going forward.

The future of Lucid is currently a bleak one, providing little hope for the once soaring LCID stock. Due to the developments this year, it has already plummeted from its $40 level to single digits, and this might be just the beginning of its downfall.

The expectations of the company remain lofty despite these recent losses, however, if it does not begin meeting or surpassing these expectations in the coming quarters, its valuation will drop even further as investors lose faith. This could spell disaster for Lucid in its current state.

Hyzon Motors (HYZN)

Illustration of blue electric vehicle (EV) charging with dark black background
Source: shutterstock.com/DigitalPen

Hyzon Motors’ (NASDAQ:HYZN) steep valuation and uncertain fundamentals might be reason enough to warn investors away. They certainly make it one of the electric vehicle stocks to sell soon.

Earlier this year, Hyzon made headlines when the SEC began investigating the company for fraud and other regulatory violations. Soon after, Hyzon issued a statement claiming that their prior financial reports had inaccuracies and “should no longer be relied upon.”

These issues raise red flags about the legitimacy of Hyzon’s operations, further demonstrating why it may be wise to steer clear of investing in the stock.

Despite several optimistic investors buying up HYZN stock, the reality is that a $26.8 million operating loss in the first quarter of 2022 appears to be a sign that things have only gotten worse since then.

With such gloomy figures, it isn’t easy to paint a positive outcome for those hoping to make money on the investment, even more so considering the minuscule $356,000 revenue reported during that period.

Cenntro Electric (CENN)

Cenntro (CENN) Logistrar 260 (LS260) electric van presented at the Hannover IAA Transportation Motor Show. Germany
Source: VanderWolf Images / Shutterstock.com

Cenntro Electric (NASDAQ:CENN) is the latest entrant in the ever-growing electric vehicle market. Its story, however, has been far from inspiring since its listing with Naked Brands last year.

Cenntro stock has dropped more than 92% since this time last year, raising questions about its shaky financial performance. To make matters worse, the cash burn of this fledgling firm has exploded to an alarming level.

Cenntro has exposed itself to multiple risks, including tariffs, supply chain hiccups and Covid-related disruptions.  Without any tax credits from the Inflation Reduction Act, their prognosis looks difficult despite how enthused they might be about entering this new market.

Nikola (NKLA)

Image of NKLA logo on phone screen
Source: Stephanie L Sanchez / Shutterstock.com

Nikola (NASDAQ:NKLA) has been the most recent in a long line of penny stocks that have taken a massive beating of late.

Despite having plans to launch a battery electric truck next year, the company’s financial positioning and current economic outlook make it seem like an impossible goal.

Coupled with its dismal performance in its most recent quarter with a hefty $237 million in negative free cash flows, it appears that Nikola will not be able to achieve its ambitious goals anytime soon.

Nikola’s seemingly never-ending list of financial catastrophes took an even darker turn after it partnered with ailing Romeo Power. The merger came at an inopportune time; with the U.S. facing an economic downturn and limited resources, Nikola faces significant limits on its ability to scale the production of its battery-electric trucks.

The smart move is undoubtedly to search for more practical investments and leave Nikola behind. As such, it’s one of the most prudent penny stocks to offload in this tight market.

Rivian Automotive (RIVN)

rivn stock sign outside the company's HQ in Silicon Valley
Source: Michael Vi / Shutterstock

Rivian Automotive (NASDAQ:RIVN) has been hit hard by the current economic situation, like many companies in its niche.

Unfortunately, factors like rising interest rates and a product recall have seriously affected its stocks and its long-term prospects. Even more concerning is that recent reports suggest multiple safety violations within the company’s Illinois factory, a serious issue for a business striving to increase production.

All eyes are now on Rivian to see if stringent measures can be taken to ensure employee safety as they work towards their ambitious goals.

Rivian’s journey in the EV market has been troubled from the start, with trust in the company waning due to numerous uncertainties. However, there have been some shining moments of hope, such as Rivian’s high-profile partnerships, but it’s unclear whether or not these will amount to anything.

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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.


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