Trouble at Tesla: 3 More EV Stocks to Sell Before They Short-Circuit

InvestorPlace04-11

Time to steer clear of these three EV stocks. ChargePoint (CHPT): Faces significant challenges and financial instability. Mullen Automotive (MULN): A meme stock with dismal performance and financial ...

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The risks are too high for them to be worth it.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","BK4527":"明星科技股","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","BK4542":"充电桩","BK4588":"碎股","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","QQQ":"纳指100ETF","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","BK4574":"无人驾驶","LU1861558580.USD":"日兴方舟颠覆性创新基金B","SQQQ":"纳指三倍做空ETF","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","TQQQ":"纳指三倍做多ETF","BK4551":"寇图资本持仓","CHPT":"ChargePoint Holdings Inc.","LU1548497426.USD":"安联环球人工智能AT Acc","BK4581":"高盛持仓","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","FFIE":"Faraday Future","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","QID":"纳指两倍做空ETF","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0056508442.USD":"贝莱德世界科技基金A2","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","BK4592":"伊斯兰概念","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4585":"ETF&股票定投概念","MULN":"Mullen Automotive","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC",".IXIC":"NASDAQ Composite","LU2063271972.USD":"富兰克林创新领域基金","QLD":"纳指两倍做多ETF","PSQ":"纳指反向ETF","LU0097036916.USD":"贝莱德美国增长A2 USD","TSLA":"特斯拉"},"translate_title":"特斯拉的麻烦：在短路前再卖出3只电动汽车股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TSLL":1,"TSLA":1,"CHPT":1,"FFIE":1,"MULN":1,".IXIC":0.7,"PSQ":0.6,"QID":0.6,"QLD":0.6,"QQQ":0.6,"SQQQ":0.6,"TQQQ":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"Time to steer clear of these three EV stocks.\nChargePoint (CHPT): Faces significant challenges and financial instability.\nMullen Automotive (MULN): A meme stock with dismal performance and financial health.\nFaraday Future (FFIE): High bankruptcy risk and financial distress make it a risky bet.\n\n\n\n\n\n \n\nSource: abolukbas / Shutterstock.com\n\n\n\nThere are some EV stocks to sell for this April. Sometimes, it’s best to ditch companies that are underperformers, instead of hanging on for a chance to recover. The EV market has seen significant volatility in recent months, with many high-profile companies struggling to maintain momentum. Investors may want to consider selling off positions in EV startups or established automakers that have failed to keep pace with industry leaders.\nTesla (NASDAQ:TSLA) is one of those companies that has faced difficulties recently, and some other EV stocks have also followed suit. Tesla’s stock fell after it missed first-quarter delivery estimates, selling under 387,000 vehicles, marking a 20% decrease from the prior quarter and an 8.5% year-over-year drop, its first since early 2020. \nThis shortfall from Wall Street’s expectation of 457,000 deliveries was described as an “unmitigated disaster” by analysts.\nThe three EV stocks to sell in this article show some troubling signs that they could repeat TSLA’s fiasco. So here are the companies to avoid.\nChargePoint (CHPT)\nSource: Michael Vi / Shutterstock.comAmidst a challenging year for ChargePoint (NYSE:CHPT), workforce reductions and infrastructure gaps have contributed to a significant stock price decline — the worst has yet to come for the company.\nIn fiscal year 2024, CHPT reported a revenue increase to $506.6 million, marking an 8% growth from the previous year. However, this period also saw challenges including a decrease in networked charging systems revenue by 1% to $360.8 million and a significant increase in net loss to $457.6 million from $345.1 million in the prior year. \nThe gross margin dropped to 6% from 18% due to various factors, including restructuring costs. Looking ahead, CHPT anticipates revenue between $100 million and $110 million for Q1 fiscal 2025, representing a projected decrease compared to the same period last year. \nThe company is expected to remain unprofitable for the next couple of years as the best-case scenario, per analyst projections. There are better options out there for investors to take advantage of.\nMullen Automotive (MULN)\nSource: Robert Way / Shutterstock.comMullen Automotive (NASDAQ:MULN), often buoyed by social media hype, has seen its stock plummet despite briefly regaining Nasdaq compliance.\nMULN is a meme stock rather than a serious invest that is bullish on the long-term prospects of the industry. It could already be dead in the water, as its stock price has fallen 99.83% over the past year alone.\nFinancially, MULN recorded its first revenue from vehicle sales in 2023, delivering 35 vehicles and generating $366,000 in revenue. However, the company faced significant non-cash write-downs due to decreased market values, including a $64 million goodwill impairment charge and write-downs of other assets.\nThere’s not much sense in holding on to a company that is struggling this much, and its prospects for recovery are limited, having delivered just 35 vehicles. Although it may trade as cheap as lottery tickets, its negative free cash flow of $226.48 million for the past twelve months means it must institute a capital raise, either thru debt or equity, thus making it riskier still to hold on to.\nFaraday Future (FFIE)\nSource: T. Schneider / Shutterstock.comFaraday Future (NASDAQ:FFIE) is concentrating on reducing operational costs and achieving cash flow breakeven. A focus on cost reduction — specifically in the Bill of Materials — has led to significant savings, such as an approximately $50,000 reduction in costs for a key vehicle component.\nHowever, and despite these efforts, this probably will not be enough for Faraday to turn its fortunes around. Faraday has displayed signs of financial distress, as indicated by an Altman Z-Score of -12.52, suggesting a high risk of bankruptcy.\nThese problems are underscored by its negative cash flow of 290.29 million, and analysts predict that it won’t break even in the foreseeable future. Like Mullen, it must raise funds either through debt, equity, or both. Its tiny stock price and market capitalization may offput creditors to lending it funds.\nFaraday simply poses too much risk for a relatively small upside, so this fits into the basket for there being better opportunities elsewhere.\nOn the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.\nMatthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSubmit\n\n\n\n\n\n\n\nArticle printed from InvestorPlace Media, https://investorplace.com/2024/04/trouble-at-tesla-3-more-ev-stocks-to-sell-before-they-short-circuit/.\n©2024 InvestorPlace Media, LLC","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2426741094"}