You don’t have to look far nowadays to find overhyped EV stocks.

Stakes are high in the electric vehicle space. Established automakers such as General Motors (NYSE:GM) and Toyota Motor (NYSE:TM) are aggressively competing with a growing number of specialized start-ups.

We’re even seeing some companies in the EV sector, such as Tesla (NASDAQ:TSLA), cut prices to spur demand as competition intensifies, leading some companies to forecast a coming price war in the marketplace.

With the global market for electric vehicles expected to exceed $850 billion by 2027, the number of companies racing to produce new brands and models is likely to only grow in the coming years.

Yet there are already many electric vehicle makers who are falling behind and whose stocks have collapsed. Here are three overhyped EV stocks to avoid at all costs.

Rivian (RIVN)

Electric vehicle maker Rivian Automotive (NASDAQ:RIVN) came out of the gate so quickly when it had its market debut in November 2021.

The company’s market capitalization briefly surpassed that of the Ford Motor Co. (NYSE:F). Boy have things changed. RIVN stock is now 89% below its closing price on the first day it traded.

In the past 12 months, the company’s share price has declined 63%, including a 19% pullback so far in 2023. The company and its stock are definitely on the downslope.

RIVN stock has gotten knocked lower by a recent analyst downgrade at investment bank Piper Sandler (NYSE:PIPR). The analyst lowered its rating on the shares to “hold” and dropped the price target by 76%, from $63 to $15 per share.

Piper Sandler raised concerns about cost management and debt servicing at the electric vehicle start-up.

Other issues weighing on Rivian stock include missed production and delivery targets, and a debt load that stands at $1.23 billion, raising doubts about its long-term viability.

Fisker (FSR)

Fisker (NYSE:FSR) is an electric vehicle maker named after the company’s founder, Henrik Fisker. It aims to produce a fully electric SUV called the “Fisker Ocean.” Things have not been going well for the company or its shareholders.

Fisker has said it plans to deliver 5,000 Ocean EVs before September this year, but has provided no firm dates for those deliveries. Fisker is also apparently waiting on some remaining approvals from the U.S. government, notably the Environmental Protection Agency.

Delays and a general lack of clarity have led to FSR stock tanking since the company went public in 2020. The share price has dropped 58% over the last 12 months, including a 28% plunge this year.

It’s also worth noting that a previous automotive company run by Henrik Fisker went bankrupt and the current incarnation of Fisker had, until 2021, been developing solid-state batteries but could not produce a workable battery. These facts have made many people on Wall Street skeptical of Fisker and its future prospects.

Nio (NIO)

Expectations that Nio (NYSE:NIO) will come to dominate the electric vehicle market in China and rival Tesla for global supremacy in the EV market are fading fast.

Production problems, disappointing delivery figures, vehicle crashes, and lawsuits have conspired to hurt sentiment towards Nio.

As a result, the company’s share price has fallen 50% in the past 12 months and now trades under $10. In the last six months, NIO stock has slumped 20%.

Other Chinese automakers are making strides in challenging Nio in the domestic Chinese market. These include Li Auto (NASDAQ:LI) and BYD Company.

Nio is expanding into the European market, but has run into problems that have included a trademark infringement lawsuit from rival Volkswagen (ETR:VOW3) and intense competition on the continent. It all adds up to poor execution and dwindling sentiment that makes NIO stock one to avoid at all costs.

On the date of publication, Joel Baglole held a long position in GM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.