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While most EV players have benefited from the industry tailwinds, some are struggling to stay afloat due to intense competition. Furthermore, an acute semiconductor chip shortage and supply chain constraints are hampering the production of EVs.
Given this backdrop, we think it could be wise to avoid EV stocks that possess weak fundamentals and poor growth prospects. Cases in point are Hyliion Holdings Corp. (HYLN) and Lordstown Motors Corp. (RIDE), which due to their fragile financial health have recently been downgraded by analysts. Therefore, we think these two stocks are best avoided now.
