Investing would be a lot easier if you didn’t have to worry about underperforming stocks to get rid of. Wouldn’t it be great if stocks did what you thought they would do when you bought them? But that’s part of the game you play when you invest in the stock market.

We can use tools, metrics and my Portfolio Grader to identify stocks with the best chance of success. But sometimes stocks just underperform for whatever reason.

That’s the basis of this grouping of stocks to sell now. Some of these were hot names just a few months ago. Many of them are in the electric vehicle space and seemed to be destined for greatness. But sadly, these are now stocks to dump for 2023 because they just underperformed expectations.

Just remember nothing is a sure thing regarding the stock market. There’s always an element of risk, even when considering some names you thought would be sure-fire winners. Let’s look at what happened to this list of underperforming stocks to sell.

Nio (NIO)

Remember the Chinese electric car marker Nio (NYSE:NIO)? This company was a legitimate challenger to Tesla (NASDAQ:TSLA) because of its unique position in the Chinese market coupled with its battery-swapping technology. 

The battery-as-a-service (BaaS) strategy lets owners pull into a station and swap out a depleted battery for a fully charged one in less than five minutes.

Nio was so highly thought of that the stock price jumped by 3,000% in the last nine months of 2020. But since then, Nio lost more than 80% of its value to fall below $10 per share, roughly where it was in mid-2020.

Nio’s trying to turn the corner. It’s expanding in China and internationally, and its goal is to have 2,300 battery-swapping stations up and running by the end of the year. 

It’s also dipping its toes into other ventures, such as a five-year partnership with Wencan Group, a supplier of one-piece die-casting parts, and a collaboration with energy technology company Tibber, which provides an energy usage tracking app.

But all in all, Nio’s been an enormous disappointment. It has a “D” rating in the Portfolio Grader.

Silvergate Capital (SI)

When you think about underperforming stocks to get rid of, one of the first names that should cross your mind is Silvergate Capital (NYSE:SI). The crypto bank looks to be seeing its final days, as it announced in March that it’s shutting down operations and liquidating.

While it’s at least a relief that Silvergate can refund all of its depositors, it’s never good news when a bank fails, even when it’s a crypto bank. But cryptocurrencies are more volatile and riskier than traditional banks, so let this be a lesson to would-be investors of similar ventures.

Also, here’s a word of caution. There’s already been some talk of speculators trying to take advantage of a short squeeze and run of the stock price. Save yourself the trouble and avoid the temptation.

SI stock has a well-deserved “F” rating in the Portfolio Grader.

Rivian Automotive (RIVN)

Another electric vehicle company that looked to go head-to-head with Tesla, Rivian Automotive (NASDAQ:RIVN) is headed in the wrong direction. The stock price is down 66% in the last year and 30% in 2023.

Part of the problem is what UBS analyst Patrick Hummel calls an automotive glut that threatens automakers in the U.S. Automakers are increasing production but demand for vehicles is decidedly cooler. 

It will stay that way as interest rates are elevated and people are less inclined to finance a new purchase.

Rivian also struggles to get vehicles off the production lines and out the door. The company is guiding to produce 50,000 vehicles this year, but the first quarter could only churn out 9,395. It needs to pick up the pace.

And don’t forget that Rivian is still burning cash. It’s guiding for losses in 2023 to continue, similar to 2022 when Rivian lost $5.2 billion.

RIVN stock has a “D” rating in the Portfolio Grader.

Canopy Growth Corporation (CGC)

Two years ago, Canopy Growth Corporation (NASDAQ:CGC) and other marijuana stocks were belles of the ball. 

There was widespread speculation that CGC stock would see a big payday as Democrats seized control of both houses of Congress and the White House. Federal legalization of marijuana seemed inevitable.

But as we established, nothing is inevitable in investing.

Instead of marijuana laws, the White House has focused more on heading off inflation and infrastructure improvements. Russia’s invasion of Ukraine roiled the globe and had Congress dealing with sanctions against Moscow and relief packages for Kyiv.

Following the midterm elections, control of Congress is split, and there’s no appetite for taking up marijuana laws before the next presidential election. The window for Canopy Growth and other marijuana companies has closed, at least for now.

Canopy stock is down 75% in the last year and has a “D” rating in the Portfolio Grader.

Tattooed Chef (TTCF)

Another trend that seems to have peaked in the last couple of years is plant-based food. While there’s no denying the health benefits of such a diet, and plant-based foods went mainstream over the previous decade. Interest has waned.

It’s fallen to where Tattooed Chef (NASDAQ:TTCF), which built its entire business model on creating products for a plant-based diet, has openly contemplated adding real meat to its offerings.

I’m sure some are aghast at the idea such a decision would completely change the company’s foundation. But as a potential investor, I appreciate any company willing to explore all its options to bring returns to its customers.

Does that make TTCF stock a good investment now? Absolutely not. Don’t confuse sentiment for cold reality.

The reality for TTCF is that this is not a good time to invest. It’s underperforming, and there’s no sign that Tattooed Chef will turn things around.

TTCF stock is down 83% over the last year, and in April received a non-compliance letter for failing to file its annual report for the 2022 fiscal year. That makes it one of the more dangerous underperforming stocks to hold. 

The company’s most recent earnings report was for the third quarter of 2022, filed in mid-November. It showed the company posted revenue of $54.1 million and an earnings-per-share loss of 43 cents, much worse than analysts’ expectations for $72.8 million in revenue and an EPS loss of 19 cents.

TTCF stock has an “F” rating in the Portfolio Grader.

ChargePoint Holdings (CHPT)

Here’s another company that probably baffled investors. ChargePoint Holdings (NYSE:CHPT) has a network of electric vehicle charging stations stretching across 14 countries. 

With EVs seemingly on the rise and efforts such as in the U.S. to build a network of EV charging stations to support the technology, investors probably thought CHPT stock would be a big winner. But that hasn’t happened.

ChargePoint stock is down by 40% over the last year, making it one of the underperforming stocks to sell while you can. Just as troubling, Goldman Sachs analyst Mark Delaney said ChargePoint has a limited margin for improvement by competition and an industry mix toward DC fast charging stations. 

Delaney has a $10 price target on CHPT stock, close to where it trades today.

CHPT stock has a “C” rating in the Portfolio Grader.

Fisker (FSR)

Fisker (NYSE:FSR) is another EV car company that was born hoping to take a bite out of the Tesla market share. Its vehicles are highly regarded. The debut model, the Fisker Ocean, won the 2023 Red Dot product design award for best EV of the year.

But the company will need help making money on its vehicles. A primary supplier, Magna International, has significant supply chain problems that will increase the cost of production. 

Still, Fisker can’t pass those costs on to customers who’ve already reserved their vehicles. It will just have to eat it.

Fisker plans to deliver 5,000 of the Fisker Oceans by September, but it’s still awaiting approval from U.S. environmental regulators before moving forward.

In another lifetime, Fisker may have had a real chance against Tesla. But it’s too far behind in the EV race to be a serious player. Now it’s just another of the underperforming stocks to dump while you can.

FSR stock has a “D” rating in the Portfolio Grader. 

On the date of publication, Louis Navellier did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

On the date of publication, the InvestorPlace Research Staff member primarily responsible for this article held TSLA. The staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.