Electric vehicle stocks went into a deep correction last year, and many believe the sector had it coming. Most EV stocks had been trading at bloated valuations, and the bubble burst was always on the cards last year. Moreover, it allowed investors to step back and look at the best investments in the sphere. The EV stocks discussed in the article are arguably those at the bottom of the barrel.

The success of the EV sector has been heavily documented and is a reality that cannot be denied. In fact, analysts have predicted that EVs will account for over 60% of vehicles sold globally by 2030, with a significant increase in market penetration from 14.7% in 2022 to 44.8% by 2023. However, investors must do their due diligence and wager on EV stocks with brighter prospects. Having said that, let’s look at three of the worst EV stocks to bet on now.

Lordstown Motors (RIDE)

Lordstown Motors (NASDAQ:RIDE) is another EV stock that attracted the bulls in 2021. However, its stock cratered last year, shedding over 50% of its value amidst incredibly challenging market conditions.

Lordstown Motors is facing a grim future as the company recently started deliveries of its flagship Endurance truck. A lousy review from Road and Track Magazine in November only exacerbated its troubles, casting further doubt on the long-term viability of Endurance. Perhaps even more concerning is Lordstown’s severe cash problem, which will hurt them even more once it ramps up production.

Nevertheless, on the bright side, it has started production, with the first batch of 500 units departing the Foxconn plant for delivery. Its management expects production volumes to rise slowly and accelerate once the company works towards overcoming its supply chain bottlenecks.

Mullen Automotive (MULN)

Mullen Automotive (NASDAQ:MULN) has been unable to break out of its current slump despite the social media chatter about the stock. Despite bullish headlines throughout 2022 and its meme stock status, Mullen hasn’t been able to regain investor trust. Consequently, its stock is down over 90% for the year and will likely dilute shares further in order to sustain its business.

Mullen has yet to weather the bearish sentiment, with its cash reserves insufficient to start product production and deliveries. There was plenty of talk about the firm’s solid-state battery technology, but its announcements need more credibility. It had just $54 million in its cash till against a cash burn from its operations of over $18 million in its most recent quarter. These events have forced the company to dilute its shares, painting a remarkably bleak future for investors.

Faraday Future (FFIE)

Faraday Future’s (NASDAQ:FFIE) foray into the EV market has come at a hefty cost. The company’s hybrid approach has caused substantial operational cash burn, which stands at over $300 million year-to-date. The firm has lofty plans to enter into the luxury EV niche, such as the FF 91, and plans to eventually offer an FF 81 and FF 71 for the rapidly growing mass market. However, the lack of financial discipline will lead to its downfall.

Its cash equivalents stand at a measly $32 million while burning $120 million for the year. As a result, the company had to resort to issuing new common shares and debt weighing down its financial flexibility. The last few days have been especially difficult for investors as the stocks trade below the standard $1 listing requirement, and management released a bankruptcy warning alongside its third-quarter earnings report. With the business’s immediate future in question, investors should jump ship now before it’s too late.

On the date of publication, Muslim Farooque 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.