3 EV Stocks You Should Avoid Despite Positive Industry Trends

As the possibility of a recession continues to loom, the automobile industry is becoming increasingly worried about a period of strain. In times of economic uncertainty, consumers often reduce their spending on high-priced items like cars, which can lead to a decline in the demand for automobiles. This, in turn, could put significant pressure on the industry.

Given the current market uncertainties, it could be wise to opt for a bearish stance on the fundamentally weak stocks Rivian Automotive, Inc. (RIVN – Get Rating), Lucid Group, Inc. (LCID – Get Rating), and ChargePoint Holdings, Inc. (CHPT – Get Rating).

The global auto industry is undergoing a profound transformation with implications for the energy sector as electrification is set to reduce the need for five million barrels of oil a day by 2030. The International Energy Agency (IEA) recently reported that Electric Vehicle (EV) sales are expected to leap 35% this year to reach 14 million.

Moreover, with increasing concerns about climate change, Americans are seen hoping to zero-emissions vehicle transition through EVs, thereby removing a major source of carbon emissions from their day-to-day life. According to a survey, over half of consumers intend to buy an EV within the next five years.

However, the stakes are running high in the EV space as Tesla, Inc. (TSLAslashed prices to spur demand as competition escalates, leading some companies to forecast a coming price war in the marketplace. Ford Motor Company’s (F) Chief Executive Officer Jim Farley said these price cuts could start a…

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