Much like the internet defined the first 10 years of the 21st century, electric vehicles may be the story of the next decade. In 2020 and 2021, any stock with exposure to electric vehicles, no matter how tertiary, took off with the thought that this time would be different. But in 2023, this is a time to consider EV stocks to sell.

Allow me to make my case. Investors would be wise to look at the lessons of the dot-com era. For every legendary name like Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, GOOGL), there were also the Pets.com of the world. The electric vehicle sector has a similar feeling right now.

The move to electrification is real, and there’s been too much invested in seeing the world going backward. An inflection point is here. However, at their core, these companies are car companies. That means they are capital-intensive businesses. And their business models are heavily reliant on a supply chain that is still disrupted in areas essential to EV production.

That means it’s time to be careful about where you direct your investment capital. Not every company will make it to the finish line, and there’s likely to be some consolidation along the way. With that in mind, here are three EV stocks to sell until there is more clarity about the future of this sector.

Rivian (RIVN)

The first stock on this list of EV stocks to sell is Rivian (NASDAQ:RIVN). When the company last reported earnings, Rivian cited a backlog of orders that extends into 2024. However, the company also stopped disclosing its net preorders in its consumer EVs.

That’s significant because the outlook for RIVN stock will depend on whether they can fill those orders. While many of these preorders are probably from individuals with the income to wait for their vehicle, that may change if the economy takes a sharper downturn.

Since going public, RIVN stock is down over 80%, and the company said it expects to deliver 10,000 fewer vehicles than expected this year. Much of that is explained by supply chain disruptions, particularly for semiconductor chips.

However, the company’s delivery numbers came to light in 2022, and the company recently announced its third recall since going public.

All of this weighs on the company’s revenue and will ultimately affect the company’s bottom line. Rivian is not expected to be profitable until 2027. Another factor for investors to consider is that short interest sits at about 11% and has increased 96% in the month ending March 15.

Lordstown Motors (RIDE)

Another EV manufacturer that is struggling with short interest is Lordstown Motors (NASDAQ:RIDE). RIDE stock is one of the most heavily shorted stocks in the EV sector. The short interest currently sits at around 16%. While it may be easing, that’s still a tough obstacle for retail investors to overcome, as is the fact that only about 30% of the company’s stock is owned by institutions.

Another obstacle is production. Lordstown Motors paused production and delivery of its Endurance pickup to address quality issues. The company also announced a voluntary recall of the EV pickups that have made it to market.

It’s a case of looking at the glass as half-empty or half-full. The company says it has completed or is in the process of completing 40 Endurance trucks. That’s a 200% increase from what the company delivered in the previous quarter. But it’s far below where investors expected the company to be now.

Fisker (FSR)

One reason for investors to consider selling a stock is when the thesis for owning it in the first place has changed. And that’s the case with Fisker (NYSE:FSR), and that’s why it’s on this list of EV stocks to sell.

Specifically, Fisker promised to deliver an affordable, sustainable EV that would be a real competitor to Tesla (NASDAQ:TSLA) at compelling price points. The company is still likely to deliver its signature Ocean EV at a relatively affordable price, but it will come at the expense of profit.

That’s because its supplier Magna International (NYSE:MGA), is facing supply chain difficulties that will delay production. This means that Magna may charge Fisker more to build its vehicles. And Fisker can’t turn around and pass that cost along to customers on a waiting list.

That news has caused FSR stock to drop over 22% in the last month. And without better news to stop the slide, it will likely have further to go. Not to mention that, of the three EV stocks on this list, Fisker has the highest short interest at over 20%.

On the date of publication, Chris Markoch 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.