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3 electric car companies that are falling apart

Jamie Cameron
14. 3. 2024
4 min read

The downturn in electric vehicles (EVs) may be an opportunity for bold investors, but not all companies are built the same. The EV market is a wild race and not all stocks have a chance to survive. Here are three stocks you'd be better off avoiding.

So given the uncertain outlook and the risk these companies pose, it's important to carefully assess your investment strategies and avoid taking unnecessary risks.

Lucid Group $LCID-2.4%

Lucid Group, a well-known manufacturer luxury electric vehicles, has yet to a long way to go to profitability. Analysts don't expect the company to reach profitability before 2029, which means investors should be patient. With cash losses reaching $653.8 million in the fourth quarter of 2023 and annual losses of $2.8 billion the path to profitability for Lucid is narrow. Even Lucid's projected production through 2024, just 9,000 vehicles, highlights that the company still has a long way to go.

LCID
$2.43 -$0.06 -2.41%
Fair Price: $5.50
Bdnihf: 49.05%
Undervalued
Overvalued
Dostupné pouze členům Bulios Black

Compared tocompetitors that burn less cash and have introduced competitive vehicles more quickly, it faces Lucid serious challenges. With each vehicle sold, the company loses more and more cash, suggesting that despite potential order growth, the losses could be even greater. In order to achieve profitability, Lucid must find ways to increase its margins and reduce losses.

LCID
$2.43 -$0.06 -2.41%
1 Day
-0.02%
5 Days
-3.63%
1 Month
-5.62%
6 Months
-46.83%
YTD
-23.13%
1 Year
-61.61%
5 Years
-67.75%
Max.
-67.75%

While some investors see the potential in the stock price decline, others are concerned about Insufficient the company's financial background and unsustainable trajectory. Lucid also faces Pressure from a market struggling to find a balance between demand and price, which may mean further difficulties on the road to profitability.

Faraday Future $FFIE-10.0%

Faraday Future, another electric vehicle company, faces its own challenges. S the FF 91 luxury SUV.priced at $309,000, the company is trying to appeal to only a narrow segment of the market, which can be difficult in a competitive environment. Comparison with competitors Tesla Model Xwhich starts at $80,000, shows the challenges the FF 91 faces in attracting customers.

The company's financial results Faraday Future are also cause for concern. With near zero revenue and an uncertain path to profitability, the company still appears to be in a pre-profit phase. For investors, this means it is difficult to gauge the future performance of the company and thus the risk associated with investing in $FFIE-10.0%. With buyback cycles and share dilution in 2024, investing in Faraday Future may be too risky.

FFIE
$0.07 $0.008 -10.00%
1 Day
-0.1%
5 Days
-14.11%
1 Month
-39.89%
6 Months
-98.6%
YTD
-72.85%
1 Year
-99.88%
5 Years
-99.99%
Max.
-99.99%

While some investors may see potential in the company's brand and technology, others may be concerned about its uncertain future development and ability to compete in the EV space. With the rapid evolution of the industry, it is therefore crucial for Faraday Future to to find a stable path to success and gain investor confidence.

Hyliion Holdings $HYLN-7.0%

Hyliion Holdings, a company engaged in alternative fuels for electric vehicles, is trying to overcome its own obstacles. With a gradual reduction in cash losses and a planned improvement in 2024, the company has hope for a better future. However, analysts predict that losses in 2025 will almost triple by 2025.suggesting that the path to profitability for Hyliion is not without its challenges.

The company's strategic shift Hyliion to the production of alternative fuels may be the key to long-term sustainability, but it also carries its own risks. With the need to invest in new technology and infrastructure, the company must deal withfinancial costs and uncertainty about future success. In parallel, Hyliion is trying to adapt to rapidly changing trends in the electric vehicle industry, which may involve changes in strategy.

HYLN
$1.32 -$0.10 -7.04%
1 Day
-0.07%
5 Days
+2.75%
1 Month
+73.15%
6 Months
+49.6%
YTD
+120.57%
1 Year
-21.76%
5 Years
-80.72%
Max.
-80.72%

With continued development and ambitions to change the alternative fuel industry, this company may be on the road to success. However, with the risks associated with changing strategy and increasing losses in the near future, it is important for investors to carefully consider to invest in this stock and carefully monitor developments Hyliion.

Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

Source.


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