Magna International Stock (NYSE:MGA), Trade Ideas

Magna International

Magna International prides itself on a highly entrepreneurial culture and a corporate constitution that outlines distribution of profits to various stakeholders. This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contract vehicle assembly. In 2023, 48% of Magna's $42.8 billion of revenue came from North America while Europe accounted for approximately 38% and Asia the remainder. The firm's top six customers constituted 76% of revenue with the top three being GM, Mercedes, and BMW. GM was the largest contributor at 14%.

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Magna International shares dip in premarket trading following Q1 results, including $316 million charges related to Fisker, despite beating revenue expectations and reporting increased adjusted EBIT.

What&#39;s Going On With Magna Shares After Incurring $316M Charges Related To Fisker In Q1?

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Serve Robotics announces an expanded agreement with Magna International to manufacture delivery robots. With Magna&#39;s support, Serve aims to deploy 2,000 robots on Uber Eats across various U.S. markets, enhancing logistics efficiency. 

Uber-Backed Serve Robotics Expands Production Partnership With Automotive Supplier Magna

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Magna International Inc  (NYSE: MGA) reported mixed fourth-quarter results on Friday.

These Analysts Slash Their Forecasts On Magna International After Q4 Results

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Morgan Stanley analyst Adam Jonas maintains Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) with a Overweight and lowers the price target from $65 to $60.

Morgan Stanley Maintains Overweight on Magna International, Lowers Price Target to $60

Raymond James analyst Michael Glen maintains Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) with a Market Perform and lowers the price target from $60 to $57.

Raymond James Maintains Market Perform on Magna International, Lowers Price Target to $57

Barclays analyst Dan Levy maintains Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) with a Equal-Weight and lowers the price target from $62 to $60.

Barclays Maintains Equal-Weight on Magna International, Lowers Price Target to $60

Goldman Sachs analyst Mark Delaney maintains Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) with a Neutral and lowers the price target from $56 to $48.

Goldman Sachs Maintains Neutral on Magna International, Lowers Price Target to $48

Wells Fargo analyst Colin Langan maintains Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) with a Equal-Weight and lowers the price target from $52 to $49.

Wells Fargo Maintains Equal-Weight on Magna International, Lowers Price Target to $49

Magna International, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) shares fall in the premarket session&nbsp;<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">after reporting first-quarter results.</a>
The company reported adjusted earnings per share of $1.08,<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/g38607477/magna-announces-first-quarter-2024-results" rel="noreferrer noopener">&nbsp;missing the street view of $1.25.</a>
The company recorded asset impairments and restructuring <a href="https://www.benzinga.com/news/24/05/38573262/cash-strapped-fiskers-ceo-lists-luxurious-hollywood-mansion-for-more-than-companys-worth-as-bankrupt" target="_blank" rel="noreferrer noopener">totaling $316 million related to </a>Fisker Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FSRN#OTC">FSRN</a>).
Lower volumes in the Complete Vehicles segment and the net weakening of foreign currencies against the U.S. dollar affected quarterly performance.
However, quarterly revenues of $10.970 billion beat the street view of $10.953 billion. Sales increased 3%&nbsp;year over year, compared to a 2% rise in global light vehicle&nbsp;production.
Magna International gained from 2% and 11% higher production in North America and China, respectively, partially offset by 2% lower production in Europe.&nbsp;
In addition to higher global production, the company&#8217;s sales benefitted from launching new programs and acquiring Veoneer Active Safety.
Adjusted EBIT increased to $469 million in the quarter compared to $449 million in the first quarter of 2023.
Dividend:&nbsp;The company declared a first-quarter dividend of $0.475 per common share, payable on May 31 to shareholders of record as of the close of business on May 17.
Outlook Lowered:&nbsp;Magna International expects 2024 sales of $42.6 billion-$44.2 billion (prior $43.8 billion-$45.4 billion)&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">vs $44.443 billion estimate.&nbsp;</a>The company sees adjusted net income of $1.5 billion-$1.7 billion (prior view: $1.6 billion-$1.8 billion).
Price Action: MGA shares are trading lower by 3.45% to $46.75 premarket at the last check Friday.
Photo via Shutterstock

What's Going On With Magna Shares After Incurring $316M Charges Related To Fisker In Q1?

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Magna International shares are trading lower after the company cut its 2024 outlook.

Updated 2024 Outlook &nbsp; &nbsp; Current(2) &nbsp;Previous Segment Sales &nbsp;Body Exteriors &amp; Structures &nbsp; Power &amp; Vision &nbsp; &nbsp; &nbsp; &nbsp; Seating Systems &nbsp; Complete Vehicles &nbsp; &nbsp; $17.3 - $17.9 billion $15.4 - $15.8 billion $5.4 - $5.7 billion $5.0 - $5.3 billion &nbsp; $17.4 - $18.0 billion $15.8 - $16.2 billion $5.5 - $5.8 billion $5.6 - $5.9 billion Total Sales &nbsp; $42.6 - $44.2 billion &nbsp;$43.8 - $45.4 billion &nbsp; &nbsp; &nbsp; Adjusted EBIT Margin(3) &nbsp; 5.4% - 6.0% &nbsp;5.4% - 6.0% &nbsp; &nbsp; &nbsp; Equity Income (included in EBIT) &nbsp; $120 - $150 million &nbsp;$120 - $150 million &nbsp; &nbsp; &nbsp; Interest Expense, net &nbsp; Approximately $230 million &nbsp;Approximately $230 million &nbsp; &nbsp; &nbsp; Income Tax Rate(4) &nbsp; Approximately 22% &nbsp;Approximately 21% &nbsp; &nbsp; &nbsp; Adjusted Net Income attributable to Magna(5) &nbsp; $1.5 - $1.7 billion &nbsp;$1.6 - $1.8 billion &nbsp; &nbsp; &nbsp; Capital Spending &nbsp; $2.4 - $2.5 billion &nbsp;Approximately $2.5 billion &nbsp; &nbsp; &nbsp;&nbsp;

Magna International 2024 Outlook Updated: Expects Sales Of $42.6B-$44.2B (Prior $43.8B-$45.4B) Vs $44.443B Est, Sees Adj. Net Income Of $1.5B - $1.7B (Prior $1.6B-$1.8B)

Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) reported quarterly earnings of $1.08 per share which missed the analyst consensus estimate of $1.25 by 13.6 percent. This is a 6.09 percent decrease over earnings of $1.15 per share from the same period last year. The company reported quarterly sales of $10.970 billion which beat the analyst consensus estimate of $10.953 billion by 0.16 percent. This is a 2.78 percent increase over sales of $10.673 billion the same period last year.

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Magna International Q1 2024 Adj EPS $1.08 Misses $1.25 Estimate, Sales $10.970B Beat $10.953B Estimate

Serve Robotics Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SERV#NASDAQ">SERV</a>) said it is expanding its existing agreement with&nbsp;Magna International Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>)<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38401431/serve-robotics-enters-production-agreement-with-magna-to-scale-robot-manufacturing" rel="noreferrer noopener">&nbsp;to boost the adoption of robotics in logistics</a>.
Under the new agreement, Magna will become the exclusive contract manufacturer of Serve&#8217;s delivery robots, effective April 24, aiding Serve&#8217;s aim to deploy up to 2,000 robots on the Uber Eats platform across multiple U.S. markets.
The previous partnership entailed Serve granting Magna a non-exclusive license to its technologies to develop new products in the robotics and logistics space. The financial terms&nbsp;were not disclosed.
&#8220;Following our successful public offering, we are excited to start working to scale our robotic fleet with Magna&#8217;s world-class manufacturing capabilities,&#8221; said CEO Ali Kashani.
&#8220;This collaboration supports the natural progression of our business beyond food delivery and positions our proprietary robotics technology as a platform upon which new robots can be built.&#8221;
Serve Robotics develops advanced, AI-powered, low-emissions sidewalk delivery robots to make delivery sustainable and economical.
Backed by&nbsp;Uber Technologies Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) and&nbsp;NVIDIA Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Serve became an independent company in 2021.
Serve has scalable multi-year contracts, including a signed agreement to deploy delivery robots on the Uber Eats platform.
Price Action: SERV shares are trading lower by 3.47% at $3.06 at the last check Wednesday.
Photo via Wikimedia Commons

<ul>
<li>Serve to rely on Magna's manufacturing expertise to scale its fleet to up to 2,000 robots for Uber Eats and for geographic expansion</li>
<li>Magna has been licensing Serve's technology to support development of new robotic products</li>
</ul>
SAN FRANCISCO, April 24, 2024 /PRNewswire/ -- <a href="https://www.serverobotics.com/">Serve Robotics</a> Inc. (the "Company" or "Serve") (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SERV#NASDAQ">SERV</a>), a leading autonomous sidewalk delivery company, today announced an expansion of their existing agreement with Magna International Inc. ("Magna") (TSX:<a class="ticker" href="https://www.benzinga.com/stock/MG#TSX">MG</a>, NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>), one of the world's largest automotive suppliers, to accelerate the adoption of robotics in logistics. Under the terms of a new production and purchase agreement effective April 24, Magna will become the exclusive contract manufacturer of Serve's delivery robots, supporting Serve's plan to deploy up to 2,000 robots on the Uber Eats platform across multiple U.S. markets.
This new agreement extends the partnership established by a previously disclosed licensing agreement effective February 20, 2024, under which Serve granted Magna a non-exclusive license to its market-leading technologies and expertise, enabling Magna to further develop new products in the robotics and logistics space.
"Serve is a leader in creating robots that navigate complex human environments. Following our successful public offering, we are excited to start working to scale our robotic fleet with Magna's world-class manufacturing capabilities. This collaboration supports the natural progression of our business beyond food delivery and positions our proprietary robotics technology as a platform upon which new robots can be built. Magna is a valuable partner in this effort," said Ali Kashani, CEO of Serve Robotics.
"Magna is excited to continue collaborating with Serve, leveraging our manufacturing and technical expertise to help fuel Serve's growth potential," said Matteo Del Sorbo, Executive Vice President of Magna, responsible for New Mobility globally.

TSX:MG

Serve Robotics Enters Production Agreement With Magna To Scale Robot Manufacturing

TD Securities analyst Brian Morrison maintains Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) with a Buy and lowers the price target from $69 to $63.

TD Securities Maintains Buy on Magna International, Lowers Price Target to $63

JP Morgan analyst Ryan Brinkman maintains Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) with a Overweight and raises the price target from $69 to $71.

JP Morgan Maintains Overweight on Magna International, Raises Price Target to $71

Barclays analyst Dan Levy maintains Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) with a Equal-Weight and lowers the price target from $63 to $62.

Barclays Maintains Equal-Weight on Magna International, Lowers Price Target to $62

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Shares of companies within the auto and auto components sector are trading lower amid overall market weakness following hotter-than-expected March inflation data.

General Motors (GM), global automotive supplier Magna, and leading technology services and consulting company Wipro Limited, have teamed up to develop a B2B sales platform for buying and selling automotive software. The platform, called SDVerse, aims to revolutionize the automotive software sourcing and procurement process by providing a matchmaking platform for buyers and sellers of embedded automotive software.

General Motors, Magna, and Wipro Team Up to Develop Automotive Software Marketplace: 'SDVerse'

Wednesday marks the last chance for investors to receive the next dividend payout from Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>). 
<h3>What's Happening</h3>
The company announced on Monday that it would pay shareholders a quarterly dividend of 47.5 cents per share. On Thursday, Magna International will go ex-dividend, meaning the stock will trade lower to reflect that payout. In other words, the stock will likely open 47.5 cents lower than it would have opened on any other day.
In order to be eligible to receive a company's dividend, shareholders must own the stock prior to the ex-dividend date—in this case, Thursday. Shareholders who own MGA as of the end of Wednesday's session are eligible to receive the 47.5 cents dividend payout for every share that they own. 
According to the company, this dividend will be paid out to shareholders on March 08, 2024. Investors will then be able to either reinvest those dividends back into the stock or use the payment in some other way. 
To read more news on Magna International <a href="https://www.benzinga.com/stock//">click here</a>
<a href="https://www.benzinga.com/calendars/dividends">Click here</a> to visit our Dividends Calendar.

Magna International: Dividend Insights

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Shares of several companies in the broader consumer discretionary sector are trading lower after January CPI data showed a greater-than-expected rise in inflation.

Magna International Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mga#NYSE">MGA</a>) reported mixed <a href="https://www.benzinga.com/news/earnings/24/02/37036881/why-is-automotive-supplier-magna-stock-falling-today">fourth-quarter results on Friday</a>.
Magna International reported fourth-quarter 2023 sales of $10.45 billion, almost in line with the consensus of $10.46 billion.
Adjusted net income attributable to Magna International increased $113 million in the fourth quarter of 2023 compared to the fourth quarter of 2022. Adjusted diluted earnings per share was $1.33, up from $0.94 a year ago, below the consensus estimate of $1.48, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
Magna said it sees fiscal year 2024 sales of $43.8 billion-$45.4 billion versus a consensus of $44.97 billion. The company sees adjusted net income of $1.6 billion-$1.8 billion and adjusted EBIT margin of 5.4%-6.0%.
For 2024, Magna sees Light Vehicle Production of 15.7 million, 17.4 million, and 28.3 million in North America, Europe, and China, respectively.
Magna shares rose 1.4% to trade at $55.47 on Monday.
These analysts made changes to their price targets on Magna International after the company reported quarterly results.
<ul>
<li>BMO Capital cut the price target on Magna International from $67 to $65. BMO Capital analyst Tamy Chen maintained an outperform rating.</li>
<li>RBC Capital lowered the price target on Magna International from $61 to $60. RBC Capital analyst Tom Narayan maintained a Sector Perform rating.</li>
<li>Scotiabank slashed the price target on Magna International from $62 to $59. Scotiabank analyst Jonathan Goldman maintained a Sector Perform rating.</li>
</ul>
&nbsp;
Now Read This: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/02/37062571/jim-cramer-says-this-construction-giant-is-so-good-and-goes-higher"> Jim Cramer Says This Construction Giant Is &#39;So Good&#39; And &#39;Goes Higher&#39;</a>

Scotiabank analyst Jonathan Goldman maintains Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) with a Sector Perform and lowers the price target from $62 to $59.

Scotiabank Maintains Sector Perform on Magna International, Lowers Price Target to $59

Barclays analyst Dan Levy maintained a Hold rating on Magna International (MGA – Research Report) today and set a price target of $60.00. The compa...

Barclays Keeps Their Hold Rating on Magna International (MGA)

In a report released today, Colin Langan from Wells Fargo maintained a Hold rating on Magna International (MGA – Research Report), with a price tar...

Wells Fargo Remains a Hold on Magna International (MGA)

Analysts have been eager to weigh in on the Consumer Cyclical sector with new ratings on Superior Industries International (SUP – Research Report),...

Analysts' Opinions Are Mixed on These Consumer Cyclical Stocks: Superior Industries International (SUP), WW International (WW) and Magna International (MGA)

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It hasn&rsquo;t been a pleasant 2024 for vehicle parts maker Magna International (NYSE:<a href="https://investorplace.com/stock-quotes/mga-stock-quote/">MGA</a>), who also happens to be the contract manufacturer for the struggling Fisker (OTCMKTS:<a href="https://investorplace.com/stock-quotes/fsrn-stock-quote/">FSRN</a>). Magna produces the Fisker Ocean, an electric vehicle (EV) SUV.



Magna CEO Swami Kotagiri <a href="https://insideevs.com/news/718548/magna-ends-fisker-ocean-production/">disclosed</a> in the company&rsquo;s first-quarter earnings call that &ldquo;production of the vehicle is currently idled&rdquo; and that Magna&rsquo;s guidance &ldquo;assumes no further production&rdquo; of the Ocean.



As a result, 2024 revenue guidance was lowered by about $400 million, while adjusted EBIT margin is expected to incur a 25 basis points reduction. The two companies had previously planned to produce up to <a href="https://eletric-vehicles.com/fisker/magna-reports-earnings-outlook-assumes-no-further-production-of-fisker-ocean/">120,000 Oceans annually</a>.



Fisker&rsquo;s troubles were amplified following the release of a scathing video review titled <a href="https://www.youtube.com/watch?v=6xWXRk3yaSw">&ldquo;This is the Worst Car I&rsquo;ve Ever Reviewed&rdquo;</a> from tech reviewer Marques Brownlee, alleging a plethora of issues related to the key fob, Bluetooth and sensors. A lack of demand due to a lack of trust later led to <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001720990/3b59d085-c041-467a-b324-e55a5fc492a2.pdf">defaults on debt</a> and a delisting from the New York Stock Exchange.



<h2>MGA Stock Receives Price Target Reductions Following Fisker Crisis</h2>



In 2023, Fisker built a total of <a href="https://investors.fiskerinc.com/news/news-details/2024/Fisker-Inc.-Announces-Preliminary-Q4-and-Full-Year-2023-Results/default.aspx">10,193 Oceans</a>. Unfortunately, the company only delivered 4,929 of them, or less than half of its annual production. As of March 15 of this year, production totaled 1,000 vehicles, deliveries were 1,300 vehicles and inventory was 4,700 vehicles. That inventory was worth over $200 million according to internal estimates. However, the inventory estimate was made before the company announced <a href="https://investorplace.com/2024/03/fisker-slashes-ev-prices-by-as-much-as-39-as-shares-continue-to-plunge/">price cuts</a> of up to 39% on its Ocean trims.



Now, Magna is feeling the impact of Fisker&rsquo;s woes. Following the company&rsquo;s earnings, at least <a href="https://www.streetinsider.com/stock_lookup.php?LookUp=Get+Quote&amp;q=mga">six firms</a> lowered their price targets for MGA stock:



<ol><li>BMO Capital analyst Tamy Chen lowered to $60 from $65.</li>



<li>Barclays analyst Dan Levy lowered to $60 from $62.</li>



<li>Scotiabank analyst Jonathan Goldman lowered to $55 from $59.</li>



<li>UBS analyst Joseph Spak lowered to $51 from $56.</li>



<li>Wells Fargo analyst Colin Langan lowered to $49 from $52.</li>



<li>Goldman Sachs analyst Mark Delaney lowered to $48 from $56.</li>
</ol>MGA stock is down by 21% so far this year and is currently trading near its 52-week low of $45.99.



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On the date of publication, Eddie Pan 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&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace&rsquo;s Today&rsquo;s Market team, which centers on the latest news involving popular stocks.</div><h3>More From InvestorPlace</h3>
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	The post <a href="https://investorplace.com/2024/05/fisker-stock-crisis-causes-analysts-to-slash-price-targets-on-magna-international/">Fisker Stock Crisis Causes Analysts to Slash Price Targets on Magna International</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

Fisker Stock Crisis Causes Analysts to Slash Price Targets on Magna International

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For the past few weeks, investors have been considering an important question: Is Fisker (OTCMKTS:<a href="https://investorplace.com/stock-quotes/fsrn-stock-quote/">FSRN</a>) on the brink of collapse? Fisker stock has been highly volatile since being delisted from the New York Stock Exchange. While positive speculation promoted by dealer partnerships has helped FSRN surge, shares have only fallen back down just as quickly. The company&rsquo;s CEO has claimed Fisker is currently in talks with several potential buyers, but there has been no word as to whether a deal is moving forward. What&rsquo;s more, recent reports <a href="https://investorplace.com/2024/05/fisker-stock-magna-says-production-of-ocean-suvs-is-idle/">indicate</a> that production of the Fisker Ocean electric vehicle (EV) has become idle. That has caused Wall Street analysts to also <a href="https://investorplace.com/2024/05/fisker-stock-crisis-causes-analysts-to-slash-price-targets-on-magna-international/">sour</a> on the firm&rsquo;s manufacturing partner, Magna International (NYSE:<a href="https://investorplace.com/stock-quotes/mga-stock-quote/">MGA</a>).



With that in mind, investors are likely looking for the best <a href="https://investorplace.com/industries/consumer-discretionary/automotive/electric-vehicles/">EV stocks</a> to sell before they go the way of Fisker. One expert believes that several other EV names may be destined for the same fate. Michael Ashley Schulman, Chief Investment Officer at Running Point Capital Advisors, recently told InvestorPlace about some of the top EV stocks to sell.



<h2>EV Stocks to Sell: Mullen Automotive (MULN)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/08/muln1600-1-300x169.png" alt="Mullen Automotive (MULN) brand logo. American automotive and electric vehicle manufacturer"><div>Source: Robert Way / Shutterstock.com</div></div>It&rsquo;s hard to have any faith in this unstable company, a now-classic meme stock that hasn&rsquo;t displayed much of any actual growth potential in months.



Mullen Automotive (NASDAQ:<a href="https://investorplace.com/stock-quotes/muln-stock-quote/">MULN</a>) <a href="https://investorplace.com/2024/04/why-is-mullen-automotive-muln-stock-up-27-today/">recently saw shares pop</a> after the company received approval for California&rsquo;s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). But with the company also launching a <a href="https://investorplace.com/2024/05/muln-stock-alert-mullen-launches-poison-pill-plan/">poison pill plan</a> to prevent a hostile takeover, its future looks increasingly questionable. Schulman noted to InvestorPlace:




&ldquo;You don&rsquo;t have to mull over Mullen for very long; they&rsquo;ve done five reverse stock splits since 2016 with three of them in 2023 [&hellip;] The company recently announced the production of its 500th electric vehicle and supposedly plans to launch in Europe. But the company has possibly spread itself too thin &mdash; across a range of propane/natural gas trucks, EV vans and trucks, and proposed electric passenger cars and sports vehicles &mdash; while not innovating enough.&rdquo;




Schulman also pointed out that Mullen&rsquo;s attempts to cover costs likely won&rsquo;t be enough to save the firm from the hole it has dug. Overall, the long list of strikes against MULN stock make a compelling case for why it belongs on a list of EV stocks to sell.



<h2>Faraday Future Intelligent Electric (FFIE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/07/ffie1600-1-300x169.png" alt="Person holding cellphone with logo of electric vehicle company Faraday Future Inc. (FFIE) on screen in front of business webpage. Focus on phone display. Unmodified photo."><div>Source: T. Schneider / Shutterstock.com</div></div>With a current share price of a little over 4 cents, Faraday Future (NASDAQ:<a href="https://investorplace.com/stock-quotes/ffie-stock-quote/">FFIE</a>) is trading just above Fisker stock, but not by much. Not that that&rsquo;s an achievement. FFIE stock has plunged more than 50% in the past month and almost 100% over the past six months.



Back in February, Faraday announced its <a href="https://investorplace.com/2024/02/ffie-stock-alert-faraday-future-plans-second-reverse-stock-split-in-5-months/">second reverse stock split</a> in just five months. This clear sign of distress didn&rsquo;t help boost shares and, months later, FFIE&rsquo;s race to the bottom has only accelerated. Now as shares trend ever-lower, it is looking increasingly like the end of the line for this troubled EV stock to sell. Schulman cited Faraday&rsquo;s questionable &ldquo;balance sheet and lack of revenue prospects&rdquo; as reasons to be wary of FFIE stock. The expert also highlighted the company losing its auditor and its Nasdaq <a href="https://investors.ff.com/news-releases/news-release-details/faraday-future-announces-nasdaq-delisting-determination-and#:~:text=Additionally%2C%20on%20April%2018%2C%202024,an%20additional%20basis%20for%20delisting.">delisting determination</a> last month. Indeed, just about everything seems to be working against this company. With the future looking bleak at best, shares of FFIE seem to be careening toward a cliff.



<h2>EV Stocks to Sell: Nikola (NKLA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/06/nkla-stock-1600-300x169.png" alt="Nikola (NKLA) badge on the front of a matte black car"><div>Source: <a href="https://nikolamotor.com/press">Nikola Press Center</a></div></div>Like other failing EV players, Nikola (NASDAQ:<a href="https://investorplace.com/stock-quotes/nkla-stock-quote/">NKLA</a>) is a former meme stock that clearly can&rsquo;t overcome its troubled past. Since founder and former CEO Trevor Milton received a <a href="https://www.cnbc.com/2023/12/18/nikola-founder-trevor-milton-sentencing-fraud-charges.html">four-year prison sentence</a> for fraud, NKLA stock has spiraled out of control.



Most recently, shares have fallen due to a <a href="https://investorplace.com/2024/05/revenue-woes-drag-down-nikola-nkla-stock/">significant revenue miss</a> for the first quarter of 2024. But Nikola&rsquo;s problems go far beyond that. Schulman noted that, like Faraday, &ldquo;Nikola also has serious issues and lost nearly $1 billion last year.&rdquo; Even the success of the EV company&rsquo;s recent capital-raising initiative isn&rsquo;t likely to save it.



Last month, InvestorPlace contributor Muslim Farooque also <a href="https://investorplace.com/2024/04/3-ev-stocks-to-sell-in-april-before-they-crash-burn/">reported</a> on Nikola&rsquo;s lack of growth prosects:




&ldquo;[Nikola] ended last quarter producing just 35 hydrogen fuel cell electric trucks, posting modest sales of $11 million. Moreover, it had to recall&nbsp;<a href="https://www.freightwaves.com/news/nikola-will-recall-209-battery-electric-trucks-following-2-fires">its 209 electric semis</a>&nbsp;due to severe battery flaws. That was compounded by a grim $154 million operating loss in the fourth quarter.&rdquo;




All told, NKLA looks like yet another one of the top EV stocks to sell.



On Penny Stocks and Low-Volume Stocks:&#8239;With only the rarest exceptions,&nbsp;InvestorPlace&nbsp;does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That&rsquo;s because these &ldquo;penny stocks&rdquo; are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that&#8239;InvestorPlace.com&rsquo;s&nbsp;writers disclose this fact and warn readers of the risks.&nbsp;



Read More:&#8239;<a href="https://investorplace.com/2014/05/fraud-penny-stocks-scams/">Penny Stocks &mdash;&nbsp;How to Profit Without Getting Scammed</a>



On the date of publication, Samuel O&rsquo;Brient&nbsp;did not hold (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the&nbsp;InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>Samuel O&rsquo;Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O&rsquo;Brient writes a weekly column on recent political news that investors should be following.</div><h3>More From InvestorPlace</h3>
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Fisker (OTCMKTS:<a href="https://investorplace.com/stock-quotes/fsrn-stock-quote/">FSRN</a>) is back in the hot seat after the National Highway and Traffic Safety Administration&rsquo;s (NHTSA)&nbsp;Office of Defects Investigation (ODI) disclosed a <a href="https://www.nhtsa.gov/vehicle/2023/FISKER/OCEAN#investigations">preliminary evaluation</a> (PE) into the 2023 Ocean SUV concerning its automatic emergency braking (AEB). Based on eight complaints, the ODI noted that the AEB system inadvertently activates when there is nothing in front of the vehicle, resulting in sudden deceleration.



&ldquo;The braking applications range from momentary, partial application resulting in rapid loss of speed to full application, which brings the vehicle to a complete stop in the travel lane,&rdquo; wrote the ODI. &ldquo;Three of the complaints alleged an injury.&rdquo;



The Fisker Ocean is the company&rsquo;s only vehicle, and it is currently undergoing four open NHTSA investigations, all of which were opened this year.



Fisker stock is down by 97% this year and about 2% today.



<h2>Fisker Stock: NHTSA Opens Preliminary Probe Into Fisker Brake Issue</h2>



This is the second PE of the Ocean&rsquo;s brakes. The first, opened on Jan. 11, alleged a &ldquo;partial loss of braking over low traction surfaces, without alerting the driver&rdquo; based on nine complaints. One of the complaints involved a crash and injury.



The Ocean&rsquo;s other two PEs involve 14 complaints about an inability to open its doors and 4 complaints, including an injury, involving unintended vehicle movement based on the Ocean failing to shift into the proper gear. 



Fisker has also previously received several <a href="https://www.edmunds.com/car-news/2023-fisker-ocean-long-term-software-update.html">user complaints</a> about its software and Bluetooth system. The company noted that the release of <a href="https://investors.fiskerinc.com/news/news-details/2024/Fisker-to-Release-Ocean-OS-2.0-Software-Update-Improving-Performance-SolarSky-Energy-Management-and-Other-Features/default.aspx">Ocean OS 2.0</a> has fixed many of these issues.



The fourth investigation comes at a time when Fisker is struggling to stay afloat. On March 18, the electric vehicle company announced that it would <a href="https://investorplace.com/2024/03/fsr-stock-alert-why-fisker-just-announced-a-production-pause/">pause production</a> of the Ocean for six weeks in order to align its inventory levels with demand. About a week later, Fisker <a href="https://investorplace.com/2024/03/fisker-slashes-ev-prices-by-as-much-as-39-as-shares-continue-to-plunge/">slashed prices</a> for the Ocean by up to 39%. That comes after the company produced <a href="https://investors.fiskerinc.com/news/news-details/2024/Fisker-Inc.-Announces-Preliminary-Q4-and-Full-Year-2023-Results/default.aspx">10,193 Oceans</a> in 2023 but only delivered 4,929 of them.



Last week, Ocean contract manufacturer Magna Steyr (NYSE:<a href="https://investorplace.com/stock-quotes/mga-stock-quote/">MGA</a>) revealed that production of the vehicle is <a href="https://investorplace.com/2024/05/fisker-stock-magna-says-production-of-ocean-suvs-is-idle/#:~:text=Fisker%20producer%20Magna%20Steyr%20has%20noted%20that,%22idle%22%20following%20a%20six%20week%20production%20pause.">&ldquo;idle,&rdquo;</a> despite the six week production pause ending on April 29. With all of the bad news adding up, the future of Fisker is unclear as ever.



On the date of publication, Eddie Pan 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&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace&rsquo;s Today&rsquo;s Market team, which centers on the latest news involving popular stocks.</div><h3>More From InvestorPlace</h3>
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	The post <a href="https://investorplace.com/2024/05/fisker-stock-alert-nhtsa-opens-preliminary-probe-into-fisker-brake-issue/">Fisker Stock Alert: NHTSA Opens Preliminary Probe Into Fisker Brake Issue</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.