Stocks to sell

3 Careening EV Stocks to Sell as Supply Outweighs Demand

The EV sector has some of the most popular and exciting stocks for explosive future growth. However, the massive attention means more players working to get a piece, creating one of the most competitive markets.

While some producers and manufacturers prosper, setting themselves up for success, others are buckling under the pressure. These three EV stocks have dim prospects as operational costs cut into their profitability, driving them into desperation.

We’ll detail the statistics from recent reports, price activity from this year, and company actions that heed caution. Investors should consider selling before it’s too late. 

Mullen Automotive (MULN) 

An angled shot of the Mullen (MULN) Five on display with a screen behind it.

Source: Ringo Chiu /

Mullen Automotive (NASDAQ:MULN) set out to be at the forefront of large EV models, including vans, SUVs, and trucks. It owns two state-of-the-art facilities in the U.S. with over 800,000 square feet of manufacturing space. This infrastructure is meant to fuel its mass production of consumer and commercial vehicles. 

While the company’s capacity and niche mission shows promise, its stock performance tells the real story. Mullen is cheap at less than $4, but this is due to numerous reverse stock splits in the last year.

After so much dilution, Mullen failed to meet the Nasdaq listing requirements earlier this year. However, the company was able to regain compliance at the beginning of March. Mullen announced its savings plan in early April to combat the possibility of such desperate actions.

Mullen’s savings plan involves reducing operating expenses by $170 million over the next year compared to last year’s spending. Of course, fewer expenses mean a smaller delivery target. Mullen’s goal for April is 100 commercial EVs, a modest number considering its production capacity. Yet, it does little to compete with the massive output from its major competitors so far this year.

Overall, Mullen is not poised for a comeback. The company has been on a slow but sure decline lately, and EV investors could certainly put their money elsewhere. 

ChargePoint Holdings (CHPT)

CHPT a chargepoint charging station

Source: Michael Vi /

ChargePoint Holdings (NYSE:CHPT) peaked in February of this year but has since failed to meet the high expectations many investors held in the stock’s potential. This comes as demand for EV charging networks and products fell around 80% over the last year with little hope for a rebound soon. 

Aside from the steadily declining price, the company released a rather unfavorable fourth quarter and fiscal year report last month. Despite a slight boost in revenue, the company suffered from a huge 12% drop in profit margin and a $113,000 decrease in net income from the previous year. 

The guidance for the coming fiscal year also did not incite much hope in investors. Sales forecasts for the first quarter represent a steep decline from the first quarter of fiscal 2024. Needless to say, many analysts are dropping their price targets for ChargePoint as a result.

ChargePoint will need to make huge leaps to get back on the road to profitability and with the projected sales volumes and guidance for this year, is unlikely to do so. Investors should consider selling before the price drops lower, with no signs of rebounding anytime soon.

Canoo (GOEV)

Canoo (GOEV) logo displayed on smartphone screen as well as in background on yellow wall


Canoo (NASDAQ:GOEV) is trying to trailblaze its own unique path in the competitive EV market with the most advanced, high-end EVs. However, the stock has been on a never-ending decline since its peak in early 2021. 

Canoo received orders from some major companies, including Walmart and KingBee, but continues to dilute shareholders to fund the fulfillment of these orders and continue operations. Canoo generated revenue for the first time last year but reported a $302.6 million net loss for the whole year.

While this was an improvement from 2022, Canoo still saw a gross margin of $-1.488 million. In addition to a shaky financial situation, Canoo has diluted shares to the point where shares outstanding have doubled since its IPO.

Canoo has consistently diluted its shares to save its unprofitable operations but the price continues to drop and investors should sell sooner rather than later.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Joel Lim 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 Publishing Guidelines.

Joel Lim is a finance freelance writer who writes content for several companies like LTSE and Realtor, along with financial publications, including Mises Institute and Foundation for Economic Education.

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