It’s another bad week for electric vehicle stocks. While Tesla shares have jumped, other smaller companies in the industry dropped. Fisker stock price retreated by over 15% on Tuesday and moved to its lowest level on record. It has crashed by more than 90% from the highest point of all time.

Fisker shares collapsed for three main reasons. First, the company’s revenues came short of estimates as it faced challenges on logistics. The main challenge was that it took longer than expected to ship vehicles from Belgium to the United States.

Second, the company delayed its 10-Q filing with the SEC citing material weakness in its internal controls. The 10-Q report has all the important information about a company’s finances. Finally, the firm lowered its delivery estimates for the year.

Meanwhile, Workhorse (WKHS) stock price crashed hard after the company published weak results. The penny stock fell to a record low of $0.3969, about 85% below the highest point this year. This crash has brought its total market cap to $86 million. 

Workhorse’s revenue came in at $3 million, a big increase from $1.5 million in the same quarter in 2022. This growth was not organic though. Instead, it was due to a reversal of $2.4 million sales allowance for the sale of W4 CC vehicles.

Workhorse’s cost of sales was $6.6 million while its net loss jumped to over $30.6 million. Therefore, there is a likelihood that the company will need additional capital since it has just $38.6 million in cash. It plans to raise some of this cash by selling its aero business.

It is quite risky to buy Workhorse stock because of the murky path towards profitability in the long term. Also, as noted, there’s a risk that the company will need to raise capital soon.

These results are making it challenging to recommend investing in electric vehicle stocks. The next one to watch will be Nio, a leading Chinese EV company that will publish its results on Thursday. Analysts expect that the company’s revenue came in at $2.88 billion in the third quarter.

Nio is facing numerous challenges, which explains why its stock has plunged to the lowest level since May. The biggest issue is that the Chinese market is highly competitive, with companies like Byd leading the charge. Nio stock has fallen by over 54% from its highest point in August.

Meanwhile, VinFast (VFS) stock price has plunged to an all-time low. After peaking at $92.92 in August, it is about to become a penny stock. VinFast challenges are that it needs more money to scale its operations and that it has a small market share in the United States.

Other EV stocks worth avoiding are Faraday Future, Mullen Automotive, Canoo, and Arrival. 

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