雅虎香港財經 3 Electric Vehicle Stocks to Sell Now
The current market downturn has exposed multiple electric vehicle stocks to sell. The EV market has seen massive volatility, but most companies are still hanging tough despite market headwinds. However, a few EV companies are buckling under the pressures exerted by current macroeconomic conditions.
The automotive market is undergoing multiple changes, especially with the economy on the verge of recession. Moreover, the current market downturn makes it relatively easy to identify EV companies struggling more than others.
Investors should know the risks of investing in EV stocks. Most of them have been growth stocks over the past couple of years, an area that has fallen out of favor with investors. Given the current market scenario, the situation is unlikely to change for the foreseeable future.
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Having said that, here are three electric vehicle stocks to sell that you shouldn’t touch with a 10-foot pole despite the massive price correction.
Rivian Automotive (RIVN)
Source: Michael Vi / Shutterstock
EV start-up Rivian Automotive (NASDAQ:RIVN) has had it incredibly tough over the past few months. It had to cut its 2022 production target by 50% and later recalled 12,212 of its EVs, nearly all of its deliveries so far. RIVN stock remains a speculative bet with multiple risks associated with its business case.
The story-based stock is trading at over 16.5 times forward sales estimates. With production delays and its recent product recall, such an excessive valuation is alarming. Investors have gotten used to production delays with EV stocks, but a product recall is likely to cause long-term damage to Rivian’s long-term brand equity.
Though its stock is down over 70% year to date, it’s not worth investing in at current prices. It’s an EV start-up plagued with the same problems that most of its peers have faced before. However, its stock price paints a completely different story altogether.
Nikola (NKLA)
Source: Stephanie L Sanchez / Shutterstock.com
Nikola (NASDAQ:NKLA) is an up-and-coming EV business specializing in producing hydrogen fuel cells EVs.
It’s still in its early stages in producing the clean-energy heavy-duty trucking sector, an industry poised for long-term growth. However, with several newsworthy scandals in the past and its quixotic ambitions, NKLA stock is a stock to avoid.
In commercializing its hydrogen fuel car trucks, the firm plans to build a nationwide hydrogen infrastructure. It has partnered with TC Energy to build hydrogen stations called “hydrogen hubs.”
The development of a wide-scale hydrogen infrastructure will likely cost billions of dollars to roll out. Nikola has roughly $315.7 million in its cash till, and it will need a truckload of more cash for its ideas to come to fruition. Considering how it won’t be releasing its first trucks until 2024, it’s tough to foresee a scenario where it could achieve these objectives over the next several years.
Hyzon Motors (HYZN)
Source: Paul Craft / Shutterstock
Hyzon Motors (NASDAQ:HYZN) is a budding fuel-cell EV maker that has been at the center of multiple scandals of late.
Its shares tanked last year after a short-seller report purported that it was operating a fraudulent business. The allegations resulted in multiple lawsuits and the firm withdrawing its previously issued financial statements and guidance.
To make matters worse, its board of directors called for a reassessment of the company’s global strategies. Hyzon identified operation efficiencies in its European operations, which will adversely impact production and sales.
Hence, with strategies and financials null and void, HYZN stock is in for a rocky road ahead. It looks like the next broken SPAC deal, and investors should sell their existing positions in the stock.
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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