As we see governments making huge investments to achieve their clean energy goals, everyone is talking about a greener future. Electric vehicle (EV) companies are set to benefit, with several subsidies and tax credits available for them. However, it is also important to keep in mind that there is a looming fear of recession. EV stocks are down today and it could be due to several macroeconomic factors. This is also a good time to rebalance your portfolio by considering which EV stocks to sell now.

This is the time to trim your position in overvalued EV stocks that do not have the potential to survive in the case of a recession. Here are the three overvalued EV stocks to sell now before it is too late.

Lordstown Motors (RIDE)

At the top of my list is Lordstown Motors (NASDAQ:RIDE). I mentioned the risks of touching RIDE in April and it has been on a downward spiral since then. The first reason to avoid this stock is its massive loss. The company reported a net loss of $171 million, which is significantly up from the $104 million in the previous quarter. 

The company does have a no-debt balance sheet which can offer high liquidity to management. However, unless there is enough cash flow from operations, the no-debt balance sheet is not going to help the company much. RIDE is trading at $0.29 today and I do not see any upside potential from here. It is down 85.7% in the past year and 77.7% in the past six months. Another reason to avoid the stock is that is has delayed production and delivery of its Endurance pickup because of quality issues. 

Lordstown Motors had only completed 40 trucks which is lower than expectations. In the recent company filing, management stated that they have not found a partner for Endurance and if they fail to do so, they will have to cease production soon. If that happens, it could be the end of the road for Lordstown Motors. 

Foxconn’s decision to cancel its investment agreement could be the last blow for the EV maker. Foxconn has decided to retract the $170 million investment in the company and if the management is unable to resolve this issue, it could end up bankrupt. Raising cash is a huge problem for the company and its future looks bleak. Therefore, it is best to cut down your losses and sell RIDE stock. 

Lucid Group (LCID)

I’m sorry to say, but it is time to get rid of Lucid Group (NASDAQ:LCID) before it dies. Lucid makes a luxury electric vehicle known as Lucid Air, which was recognized as the luxury car of the year. However, since it is a luxury car, there are not a lot of buyers due to the higher price range. Even Tesla (NASDAQ:TSLA) had to consider price cuts to remain relevant in the current market climate.

The only thing keeping the business going is the investment from the Saudi Arabian Public Investment Fund (PIF) that is helping with production plans. Lucid is currently making the car in Arizona but will start rolling out Saudi-made sedans in September of this year. The competition in the market is growing and if there are any delays, LCID stock will pay for it. In the first quarter, the company managed to produce only 2,300 cars and deliver 1,400. 

LCID stock is trading at $7.59 today and is down 59% in the last year and the financials show us the reason behind the drop. The company recently reported first-quarter results, which reflected a revenue of $149.4 million and a net loss of $779 million. 

If the company did not have Saudi backing, it would have packed up the business long back. It can still survive as long as there is financial support but investors may not have the patience to wait for a profit. You will not be able to see any profit on your investment for a long time to come. If consumers have to wait too long for a sedan, they are going to start looking at other options in the market — of which there are many. 

Fisker (FSR)

EV maker Fisker (NYSE:FSR) hasn’t had a smooth ride lately. The company took a long time to begin production and it could finally have an EV that promises high quality. It outsourced production of the Ocean SUV to Magna International (NYSE:MGA) which has a strong track record of vehicle production, but that won’t help Fisker. The company delivered its first Ocean SUV this month. Investors are looking at the numbers and view this partnership as a solid move but it is not helping with the production or revenue numbers. 

FSR stock is trading at $6.49 today and is down over 41% in the last year and I do not think it will rise anytime soon. In a period of high inflation, it is risky to bet on a luxury car. That is where Fisker will lose against its competitors. The company has received European approval but is still awaiting U.S. approval. That said, it doesn’t even have a solid financial situation. In the recent quarterly results, the company reported a loss of 38 cents, much wider than analyst expectations. It also cut production guidelines from 42,500 EVs for the year to between 32,000 to 36,000 vehicles in the year.

The company has ambitious production plans but I think it is too risky right now. It is also burning more cash than investors would expect and meeting the new production target also looks risky to me. FSR is one of the top EV stocks to sell now. 

On the date of publication, Vandita Jadeja did not hold (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.