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3 EV Stocks to Sell in June Before They Dive
FFIEFaraday Future(FFIE) Investor Place·2024-06-14 11:30

Industry Overview - The electric vehicle (EV) industry continues to depend on subsidies and tax incentives to boost adoption, as high battery costs keep EV prices above those of average gasoline-powered cars [1] - Recent data from the NY Fed indicates rising delinquencies across all debt types, with auto-loan delinquencies at 8% and credit card delinquency rates at a 13-year high [1] Employment and Economic Sentiment - A decline of 625,000 full-time jobs in May, along with downward revisions in job reports, suggests a contraction in the economy, raising concerns for EV stock investments [2] Lucid Group (LCID) - Lucid Group's entry-level luxury sedan, the Lucid Air, is priced at approximately 71,000,higherthancompetitorsliketheBMWi5[3]−InQ12024,Lucid′sEVdeliveriesincreasedby4071,000, higher than competitors like the BMW i5 [3] - In Q1 2024, Lucid's EV deliveries increased by 40% year-over-year, totaling 1,967 cars, but the company reported a net loss of 680.8 million, an improvement from a 779.5millionlossinthepreviousyear[3][4]−Thecompanyendedthequarterwith779.5 million loss in the previous year [3][4] - The company ended the quarter with 2.16 billion in cash reserves after a 1billionfinancinground,butitstotalrevenueof1 billion financing round, but its total revenue of 172 million fell short of the projected 182million[4]−Year−to−date,LCIDstockhasdecreasedby36182 million [4] - Year-to-date, LCID stock has decreased by 36%, nearing its 52-week low of 2.29 [4] Mullen Automotive (MULN) - Mullen Automotive focuses on utility vehicles, offering products like the Mullen One delivery van with a range of 110 miles and the Mullen Campus priced at 24,000[5]−ThedemandforEVutilityvehiclesisquestionedduetolowerrangesandarecentdropindieselfuelprices,whichhasaffectedmarketprospects[5]−Mullenreportedanetlossof24,000 [5] - The demand for EV utility vehicles is questioned due to lower ranges and a recent drop in diesel fuel prices, which has affected market prospects [5] - Mullen reported a net loss of 193.9 million in fiscal Q2 ending March 2024, with only 362 vehicles delivered worth 16.3million,leadingtoa7816.3 million, leading to a 78% decline in MULN stock year-to-date [6] Faraday Future Intelligent Electric (FFIE) - Faraday Future's FF 91, launched after five years of delays, is priced at 309,000, with a cheaper model at 249,000,positioningitinthesupercarcategory[7]−Thecompanyreportedrevenueof249,000, positioning it in the supercar category [7] - The company reported revenue of 784,000 in Q4 2023, with a comprehensive loss of 429.38million,leadingtoa99429.38 million, leading to a 99% drop in FFIE shares over the past year [7][8] - Despite reducing operating losses from 437.1 million in Q4 2022 to 286millioninQ42023,thecompany′sfinancialviabilityremainsuncertain,with286 million in Q4 2023, the company's financial viability remains uncertain, with 530.5 million in assets against $302.3 million in liabilities [8]