3 Electric Vehicle Stocks to Sell Now

Although the electrification of transportation may very well be the future, not every sector player will rise to meet the challenge, thus boding poorly for certain electric vehicle stocks to sell now. Whether Wall Street has trouble believing in their viability or their business plans don’t align with fundamental realities, these companies might not have the substance to cross the finish line.

To be fair, not all electric vehicle stocks to sell are in trouble solely because of their own doing. For instance, the rising rate of inflation means that the purchasing power of the U.S. dollar has declined precipitously, leaving little room for many consumers to be able to make the pivot to electrify their rides.

While sector proponents often point to skyrocketing gasoline prices as an upside catalyst for EVs, the problem is that everyone now desires them; thus, prices have naturally risen. Currently, the average transaction price for a new EV is slightly over $60,000. This is simply not realistic for most households, thus driving the case for specific electric vehicle stocks to sell.

Finally, with so many competitors saturating the market, not everyone can be a winner. Here are the electric vehicle stocks to sell now.

Electric Vehicle Stocks to Sell Now: Canoo (GOEV)

When Canoo (NASDAQ:GOEV) first launched its initial public offering (IPO) – through a reverse merger with a special purpose acquisition company (SPAC), by the way – the company generated some positive feedback. Though opinions will certainly vary about its uniquely shaped EV, Canoo billed it as a lifestyle platform for young people.

Further, the EV manufacturer’s skateboard platform theoretically enables it to develop myriad different vehicle styles. This empowers the company to adjust to consumer whims relatively quickly, providing a significant edge over legacy competitors.

However, Canoo started to court some troubles over the last several months, perhaps most notably as a subject of a Securities and Exchange Commission investigation. As I’ve personally experienced, Canoo loyalists will argue up and down about the organization’s virtues.

Here’s my problem. No matter what the bulls have said, GOEV shares have continued to plummet. Further, the acceleration of pain is incredibly problematic, making it one of the electric vehicle stocks to sell now.

Kandi Technologies Group (KNDI)

On paper, Kandi Technologies Group (NASDAQ:KNDI) doesn’t seem like a candidate for electric vehicle stocks to sell but rather, one of the sector players to buy. Remember what I said about the average transaction price for new EVs hitting 60K? Well, Kandi belongs on the lower end of that spectrum, which specializes in ultracompact EVs that are wallet-friendly.

How friendly, you might ask? Kandi’s K23 model features a no-haggle price of $22,499. The company also offers off-road EVs that start at $30,499, which isn’t that bad considering the new economic paradigm. Nevertheless, I’m going to have to stick KNDI on this list of electric vehicle stocks to sell.

The problem is that while Kandi is aggressively attempting to court the U.S. market, Americans have consistently demonstrated that they don’t like small cars. And Kandi EVs aren’t just small – they’re practically microscopic.

Perhaps horrendous gasoline prices will change their minds – I’m open to that possibility. But based on longstanding consumer trends, I don’t think that’s a likely scenario.

Electric Vehicle Stocks to Sell Now: Workhorse Group (WKHS)

Last year, investors were abuzz with anticipation as the U.S. Postal Service was set to announce which company would win the contract for replacing the federal agency’s aging long life vehicle (LLV) fleet. Workhorse (NASDAQ:WKHS) stood out among the three finalist companies because it offered the only fully electric solution.

However, I was one of the few that warned investors that Workhorse wasn’t a shoo-in for the Postal Service contract, noting challenges with the electric platform that could hinder mail carriers in their critical role. It turned out that the Postal Service also had concerns about Workhorse’s proposal. Following its rejection, the company issued a legal challenge which it later dropped.

Frankly, without that contract, it’s difficult to see where WKHS goes from here. While other EV firms are making progress with production and deliveries, Workhorse is falling behind. Further, Gurufocus.com labels WKHS as a possible value trap, in my opinion rightly so. This is one of the electric vehicle stocks to sell, really for your own good.

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On the date of publication, Josh Enomoto 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.