There’s a long-term shift in the automotive industry toward electric vehicles. However, not all players in the industry will be winners. In fact, there are quite a few EV stocks to sell, as the industry is full of companies that came public over the past few years with little track record of success or commercial demand.

Indeed, the flood of SPACs has arguably left the market with far more EV stocks than needed. The industry is likely to consolidate around a few well-capitalized innovators, such as Tesla (NASDAQ:TSLA), along with a variety of legacy automakers that are rolling out their own EV prototypes. These companies don’t make lists of EV stocks to sell.

Meanwhile, many of the newer firms don’t have much funding and struggle to find successful market fit with their products. All this adds up to a situation where investors should be cautious. That’s especially true with these three EV stocks to sell.

Workhorse (WKHS)

Workhorse (NASDAQ:WKHS) was one of the early entrants in the electric vehicle SPAC derby. WKHS stock started trading around $10 in 2020 and shot up to $40 at its peak in 2021.

However, a scandal including allegations of fake preorders, vehicles that failed to meet performance requirements hit the company and caused a shakeup in the C-suite.

It is unclear what bull case remains for Workhorse. The company hasn’t reached any reasonable commercial traction. Revenues of $3.4 million last quarter fell a shocking $7 million short of expectations.

Shares are struggling to remain above the $1 mark, which could indicate a potential threat of delisting in the future. And the company continues to lose large amounts of money and could need to raise more cash.

WKHS stock has already lost half its remaining value since the end of February. Sometimes, that might be a sign that selling is reaching a climax and the trend will change directions. There’s not been much demonstration that Workhorse will ever manage to come up with a viable product or business model.

Fisker (FSR)

Fisker (NYSE:FSR) is one of the more popular EV stocks out there today. Unlike many of the EV SPACs that have already fallen by the wayside, Fisker still retains a respectable $1.8 billion market capitalization.

This is likely because there has been more buzz around Fisker’s vehicles. Pre-order figures have been fine enough. And the company’s contracted manufacturing model should cause it to preserve its capital for longer than many of its EV rivals.

That said, it’s important to remember that Fisker is the second company launched by founder Henrik Fisker. The first version of Fisker went bankrupt in 2014 after selling just 2,000 of its previous generation of electric vehicles.

There is good reason for skepticism around this iteration of Fisker as well. The company is still starting commercial revenue generation, meanwhile it has been losing massive sums of money, with operating costs topping $700 million last year.

Meanwhile, the company is only projecting a midpoint 10% gross margin for vehicles sold in 2023, which is a rather scant profit to support Fisker’s ambitions.

Perhaps the strongest bullish trading argument for FSR stock is that a stunning 35% of the float has been sold short. In the event Fisker announces any positive news, shares could rebound.

Bears have been right about Fisker for a long time, and their high level of confidence here seems warranted. Management needs to change the narrative, otherwise shares seem likely to drift under the $5 mark in the coming weeks.

Envirotech Vehicles (EVTV)

Envirotech Vehicles (NASDAQ:EVTV) is a small company seeking to commercialize all-electric electric vehicles and drivetrains for medium- and heavy-duty vehicles. The company claims to be North America’s only producer of all-electric zero-emission Class 3, 4, 5, and 6 vehicles. The firm also states that it has more than 30 years of industry experience.

Despite this track record, Envirotech has struggled to gain any market adoption. The firm used to be named Adomani and traded under the ticker symbol “ADOM”. Adomani had little success; it ultimately changed its name to Envirotech. After a time on the pink sheets, the company recently performed a reverse split in concert with its return to the NASDAQ market.

Generally, investors should be skeptical of companies that change their names and ticker symbols while failing to generate much revenue or commercial success. And we don’t have recent financial statements, as the company was recently unable to file its annual report on time.

Regardless, it appears Envirotech is generating less than $10 million in annual revenues and has struggled with profitability. As such, traders should avoid EVTV stock unless there is much more clarity around its financial condition and forward prospects.

On the date of publication, Ian Bezek 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.