Stocks to sell

The Best Time to Sell These 3 EV Stocks is Now

While we eagerly wait for the electric vehicle delivery numbers and quarterly results, it is important to keep in mind that several companies will disappoint. There is a positive outlook towards EV stocks and governments across the world are offering incentives to increase the adoption of EVs but there is still a long way to go. EVs haven’t become mainstream yet but the competition is rising and this means there will be several companies that will be thrown out of the industry even before they grab any market share. The industry is moving at a steady pace and while some of the top EV companies are reporting strong numbers and stellar revenue, many others are struggling. If you want to cut your losses, here are the top three EV stocks to sell before they die. 

Fisker (FSR)

The Fisker logo hangs on display at the November 2011 International Auto Show.

Source: Eric Broder Van Dyke /

Fisker (NYSE:FSR) took forever to start production and it is now working on ramping up the production in the fourth quarter. It recently announced that it had produced 5,000 EVs and this did give a boost to the stock. By December, the company plans to deliver 300 SUVs each day but until September, it had only delivered 775 SUVs. Although it has ambitious plans, it is hard to believe that it will be able to deliver 300 SUVs a day in two months. I think that the company is overpromising and only taking time. When it comes to Fisker, I always say, believe it when you see it. 

Earlier in the year, the company projected a production of 36,000 units for the year and then revised it to 20,000. It is now again aiming to ramp up the production, but it still is overpromising. Throughout the long term, the company might be able to meet the targets, but investors should wait and watch.

The company has also launched new features to beat the competition in the industry and aims to push the range limit. It aims to do this while keeping the prices low. Fisker is also aiming to launch new models by 2026 and has announced plans to increase the deliveries of SUVs.

However, we must remember that there are several macroeconomic concerns including high interest rates, changing consumer preferences, and lower consumer spending. FSR stock hasn’t hit $10 in the past 12 months. It is trading at $5.92 today. It is down 16% in the year and I am not saying the stock will not recover, but it will take time and you never know how much it delivers on its promises. 

Lucid Motors (LCID)

Closeup of the Lucid logo seen at a Lucid showroom in Millbrae, California. LCID stock.

Source: Tada Images / Shutterstock

I am going to say this again, get rid of Lucid Group (NASDAQ:LCID) as soon as you can. The company recently announced the third quarter delivery numbers and they were disappointing. It produced 1,550 vehicles and delivered 1,457. It has another 700 vehicles that are on the way to Saudi Arabia for assembly.

The management could not meet the projection of 2,000 vehicles. It delivered only 1,404 vehicles in the second quarter and reported a loss of $764 million. It might report a higher loss in the third quarter and this will be disappointing for investors. 

There isn’t much working in favor of the company and LCID stock has been struggling for a long time now. The stock has dropped 26% since January and is trading at $4.53 right now. This is also its 52-week low and I do not think that it can rise anytime soon. It is also heavily dependent on Saudi Arabia which is not a good sign. LCID is one of the top EV stocks to sell. 

Stocks do show volatility but with LCID, the performance has only been disappointing. It has been struggling since the beginning of the year and the drop in consumer spending has also affected sales. Lucid produces expensive cars and now is not the time for consumers to spend their money on such high-priced cars. The company is struggling with cash burn and might take a lot of time to recover. If you haven’t invested in the stock, stay away from it but if you own it, get rid of it to trim your losses. 

Mullen Automotive (MULN)

Mullen Automotive (MULN) brand logo. American automotive and electric vehicle manufacturer

Source: Robert Way /

I doubt that Mullen Automotive (NASDAQ:MULN) can live up to the ambitious plans it has been laying out. The automaker wants to deliver 160 Mullen Class 3 EV trucks by the end of this year and it has only started production in August. To date, it has only managed to deliver 10 vehicles. It has a contract with Randy Marion Automotive Group (RMA) for the delivery of 1,000 vehicles and the automaker will deliver another 150 by the end of 2023. It has low revenue and is burning cash heavily.

The company’s projections do not match up to the production numbers and I feel that the stock is trading below $1 for a reason. It is also struggling to maintain the Nasdaq listing.

It had to work to regain compliance with the listing requirements in September since it could not maintain the minimum bid price of $1. Today, MULN stock is exchanging hands for 34 cents and is down almost 100% year to date. 

Surprisingly, its 52-week high is $137 and it hasn’t been able to hit $3 since July. The stock is steadily dropping and I do not see any hope right now. Depending on the rate at which you bought the stock, you might not be able to make any money off it. However, it is best to stay away from Mullen Automotive adn the rest of these EV stocks to sell for the near future. 

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 Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.