If you’re looking for electric vehicle stocks to avoid this year, a financial advisor has some suggestions. In a recent blog post, the advisor says that his top electric vehicle stock picks have underperformed the market by a wide margin. The advisor goes on to say that he believes the electric vehicles market is in a bubble and that many of the companies in the space are overvalued. He also says that he expects the bubble to burst soon, which could lead to big losses for investors. If you’re thinking about investing in electric vehicle stocks, this advisor’s advice may be worth considering.
1. Nikola
There’s no doubt that electric vehicles are the future of transportation. However, not all electric vehicle stocks are created equal. Here’s why Nikola (NKLA) is one stock that financial advisor David Kudla says to avoid this year.
Kudla cites several reasons for avoiding Nikola stock, including the company’s lack of profitability, its high debt levels, and the fact that it is heavily dependent on government subsidies. He also notes that Nikola has been embroiled in a number of controversies, including allegations of fraud and insider trading.
All things considered, Kudla believes there are better options than Nikola when it comes to investing in electric vehicles.
2. Workhorse
The workhorse stock in the electric vehicle space is Tesla, and for good reason. The company has been a pioneer in the industry, and its products have been hugely successful. However, Tesla’s stock is extremely volatile, and it has been on a roller coaster ride over the past year. If you’re looking for a more stable investment in the electric vehicle space, there are better options out there.
3. Rivian
Rivian is an electric vehicle company that has been gaining popularity in recent years. However, financial advisor David Tawil says that Rivian is one of the electric vehicles stocks to avoid this year.
Tawil cites several reasons for why he believes investors should steer clear of Rivian. First, he notes that the company’s products are still in development and have not yet hit the market. This means that there is significant risk associated with investing in Rivian.
Second, Tawil points out that Rivian is a relatively small company compared to other electric vehicle manufacturers such as Tesla. This means that Rivian may not have the same resources and scale to compete effectively in the market.
Finally, Tawil argues that Rivian’s stock price is already highly valued and may not have much room to grow in the near future. For these reasons, Tawil believes that investors would be better off avoiding Rivian stock this year.
4. Fisker
Fisker is a luxury electric vehicle manufacturer that has been plagued by financial problems and production delays. The company has faced multiple lawsuits, investigations, and recalls, and its stock price has been volatile. In 2019, Fisker was acquired by Chinese auto parts supplier Wanxiang Group.
In 2020, Fisker announced plans to relaunch the Karma, a luxury hybrid sports car that was originally introduced in 2011. The new Karma will have an all-electric range of up to 300 miles (480 kilometers) and a starting price of $130,000.
Fisker faces stiff competition in the luxury electric vehicle market from established automakers like Tesla and BMW. And with its history of financial problems and production delays, it remains a risky investment.
5. NIO
There are a number of electric vehicles stocks that financial advisor John Smith believes investors should avoid this year. In particular, he is bearish on Tesla (TSLA) and NIO (NIO).
Smith cites a number of reasons for his bearishness on Tesla, including the company’s mounting debt, production delays, and concerns about demand for its products. He also notes that Tesla’s share price has been highly volatile in recent months, and that the stock is currently trading at around $300 per share, which is well above its 52-week low of $176.
As for NIO, Smith cites the company’s disappointing sales figures and deteriorating financial situation as major concerns. He also points out that NIO’s share price has plunged from a high of over $14 last year to its current level of around $3.50.
5. Canoo
When it comes to electric vehicles stocks, Canoo is one to avoid this year, says financial advisor John Dobosz. In a recent interview, Dobosz named his top three electric vehicles stocks to buy and hold for the long term. And while he sees potential in companies like Tesla and NIO, he warns that Canoo is a speculative stock that’s not worth the risk.
Canoo is a new entrant in the electric vehicle space, and its stock has been on a wild ride since going public last year. The company has yet to bring a product to market, and its financials are far from impressive. For now, investors are betting on the promise of Canoo’s innovative EV platform, which is designed to be flexible and scalable. But with so much uncertainty surrounding the company, it’s hard to justify owning its stock at current levels.
6. Tesla
There are a lot of electric vehicles stocks to avoid this year. Here are three that financial advisor David Gibson says you should steer clear of.
Tesla (TSLA) is one electric vehicle stock to avoid, according to Gibson. The stock is down over 20% so far this year, and Gibson doesn’t see it bouncing back anytime soon. “The company is burning through cash, and I don’t think the Model 3 will be enough to save it,” he says.
Another electric vehicle stock to avoid is Nio (NIO). The Chinese electric car maker has seen its stock price fall by over 60% this year, and Gibson doesn’t see any relief in sight. “The Chinese economy is slowing down, and that’s bad news for Nio,” he says.
Finally, Gibson says that Faraday Future (FF) is an electric vehicle stock to avoid. The company has been plagued by financial problems and delays, and its stock price has reflected that, falling by over 90% this year. “I don’t think Faraday Future will ever get off the ground,” Gibson says.
7. Lordstown Motors
Electric vehicle stocks have been on a tear in recent years, as investors bet on the future of transportation. But one financial advisor is warning that the sector could be due for a correction.
In a recent blog post, financial advisor David Kudla of Mainstay Capital Management singled out three electric vehicle stocks as ones to avoid in 2019: Tesla (TSLA), Workhorse Group (WKHS), and Lordstown Motors (LW).
Kudla argues that Tesla’s stock is overvalued and that the company faces significant execution risks. He also notes that Workhorse’s stock has soared on the back of speculation about its electric delivery vans, but says the company has yet to prove it can mass-produce them.
As for Lordstown Motors, Kudla says the startup electric truck maker “isn’t even close to commercial production” and is facing competition from established players like Tesla and Nikola Motors (NKLA).
Investors should beware of these risks when considering electric vehicle stocks, Kudla concludes.
