This hasn’t been a good year for EV stocks. 

While the future is certainly electric, EV makers have had a difficult time dealing with the China lockdown and supply chain issues. The EV bubble may not burst anytime soon but a lot of companies could end up losing money. 

Many EV stocks have taken a beating in this period and some of the top companies have seen their stock valuations drop significantly.

There are plenty of EV companies in the industry and while the market is slowly recovering, some EV stocks are best avoided. These companies may not rise to the levels they did in 2020.

These companies may not generate any returns for you this year and are too risky to touch now. Let’s take a look at them. 

Fisker (FSR)

I have been writing about Fisker (NYSE:FSR) since 2021 and have patiently waited for it to deliver positive news.

The EV maker promised to deliver a sustainable EV that could compete with Tesla (NASDAQ:TSLA) but it has taken too long for the company to complete testing. Its supplier Magna International (NYSE:MGA) is dealing with supply chain issues that have led to a delay in production.

It could also mean that the cost of production will increase and if Fisker wants to deliver the Ocean at an affordable price point, it will have to compromise on the profit.

The company has completed mileage testing and is waiting for the certificate from Environmental Protection Agency before it begins production on April 20.

It looks like Fisker is too late in the EV race and by the time it begins full production and delivery, it might have lost consumers to another EV maker. 

FSR stock is trading at $5.51 today, down from $12 about a year back. The stock is down 55% in the year and 20% year to date. It started trading in 2020 in the $9 range but it is trading even lower today.

With no positive news coming from the company, I believe the stock does not have much upside nor the potential to grow in the coming months. This is one of the EV stocks that is best avoided.

Lucid (LCID)

Another EV stock to avoid is Lucid (NASDAQ:LCID). It went public in 2021 and has only seen the stock price fall since then.

LCID stock trades below $10 today and the drop is mainly due to the production delays. The stock was once as high as $55 in 2021 but has only dropped since then.

Its journey from $55 to $8 hasn’t been smooth, and it has also left investors disappointed. The company has had several unprofitable quarters and the trend could continue in this quarter as well.

With the rising cost of living, it is getting harder and harder for the company to market its luxury cars.

Lucid Air was named the 2022 MotorTrend Car of the Year and showed massive potential but the constant delays in production has done more harm to the company.

It also cut down on the production target this year and aims to build 10,000 to 14,000 EVs. Most recently, it announced job cuts to reduce the losses. My InvestorPlace colleague David Moadel believes that the layoffs will not save the stock. 

Even in 2022, I wrote about that the stock looked overvalued. My primary concern then was the production delays and missed targets.

They remain the same.

LCID stock may show a bounce back but it will have to show production numbers and reach new highs to regain investor trust. For now, the stock is best avoided.

Lordstown Motors (RIDE)

The only reason anyone would consider Lordstown Motors (NASDAQ:RIDE) is its no-debt balance sheet which offers high liquidity to management even during market turmoil, but if you look at the business, there are several red flags.

RIDE stock is trading below $1 today and there is not much upside potential. The stock was at $10 in 2020 and has gone below $1 today and it hasn’t had a smooth ride.

In the recent quarter, the company reported a loss of $104 million and a full-year operating loss of $387.3 million. It only has $221.7 million cash on hand which means it will have to look for ways to raise money. 

The company’s problem is production. It has paused the production and delivery of the Endurance pickup due to quality concerns and the company also recalled the EV pickups that had made it into the market.

It is only close to completing 40 Endurance trucks which is much lower than the market expectations. At the current pace, it is hard for Lordstown to meet investor expectations or attract consumers.

Even if the company continues production, it will be hard to find a strategic partner or gain an investment. For Lordstown, this could be the end of the road. 

On the date of publication, Vandita Jadeja 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 InvestorPlace.com Publishing Guidelines.