Stocks to buy

3 EV Stocks to Ignore Before They Fall Even Further

Demand for EVs remains robust based on delivery numbers by some of the leading firms in the sector.  Further, the expectation of rate cuts later this year promises to boost the sagging industry. 

Yet that does not imply that investors should throw their hard-earned capital at EV stocks indiscriminately. In fact, there continues to be a glut of junk stocks available throughout the EV sector. 

The automotive industry is one that is known for tight margins and difficult to secure profitability. The introduction of electric drive chain trains into that equation increases risk.

Beyond that simple truth, the special purpose acquisition companies (SPAC) that fueled the boom bringing many EV firms public continue to fail. The remnants of that boom linger and represent some of the weakest investments. Let’s take a look at three EV stocks that investors must avoid.

Arrival (ARVLF)

Source: Ronald Rampsch /

It wasn’t long ago that Arrival (OTCMKTS:ARVLF) stock traded on the Nasdaq exchange. It now trades over-the-counter. The company is a prime example of the SPAC companies that continue to fall like flies. 

Arrival is very clearly in trouble given that the company failed to post financial results on time. It then failed to submit a remediation package to the Nasdaq leading to its delisting. The company is currently considering a sale of its assets which is another way of saying that it is approaching bankruptcy.

The overarching premise of Arrival, and the reason it became so valuable, was its manufacturing approach. The company intended to leverage what it referred to as ‘microfactories’ to substantially increase production efficiency.

However, the company was never capable of getting production humming as it had hoped. Ultimately, the company was incapable of producing even a single production-level vehicle for any of its partners. It goes without saying that its promise of highly efficient microfactories was little more than a pipe dream. It should only fall further in value as a result.

ChargePoint (CHPT)

Source: Michael Vi /

ChargePoint (NYSE:CHPT) has gone from the clear leader in the EV charging space to highly maligned stock today. The company had a strong lead just a few years ago and a massive advantage in the size of its network relative to its competitors. Its rapid decline is the primary reason for investors to avoid the stock at all costs.

The company announced that it was going to fire 12% of its workforce back in early January. Of course, it referred to that decision as a ‘strategic reorganization’ but it’s nothing more than an admission that the company is failing.

It should be no surprise then that the financial picture is bleak at ChargePoint. Revenues declined by 12% during the most recent quarter. Losses ballooned from $84.5 million to $158.2 million. 

The company is also now facing a class action lawsuit for investors who lost more than $100,000 after investing in CHPT stock. Executives are charged with failing to disclose materially relevant information which is a violation of federal securities law. 

Workhorse Group (WKHS)

Source: Photo from

Workhorse Group (NASDAQ:WKHS) is another once-promising EV stock that is rapidly approaching dissolution. The company produces vans and drones and was once a prime candidate to win substantial business from the U.S. Postal Service. It ultimately failed to land that contract and has continued to slide ever since.

These days the company continues to avoid bankruptcy by producing four vans per week while relying on the promise of a combination of government handouts. Those handouts include grants and subsidies that ostensibly make it investment worthy. 

Yet, the company is nowhere near profitability. The minimal sales that it does garner are far outweighed by the costs associated with those sales. The $8 million in sales the company managed to capture in the first nine months of 2023 led to a gross loss of $11 million. That is simply the difference between the sales and the total cost of sales. The company’s net loss was much larger at $78.6 million.

There is no rational reason for investors to consider placing their capital into Workhorse at this time and there likely never will be.

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.