Stocks to Avoid: DJT, Nio, Lucid and More

Investors learned the risks of de-SPACs after losing substantial funds. Trump Media and Technology (DJT) is the latest fading stock that closed near its low for the year. Bears hold a 19.26% short float against the stock. A short squeeze that would cause a rally back to $30 is unlikely. It would require Trump not to sell shares.

Donald Trump assured, through a suggestion at a news conference, that he is not prepared to sell DJT shares. Bears are skeptical, so if he changes his mind, the sale would send the stock into the single digits.

In the electric vehicle sector, China’s Nio (NIO) potentially peaked at around $5.50. NIO stock fell by 7.21% after the firm defied European tariffs. It began delivery of an EL8 SUV in Europe. The vehicle offers an updated NT 2.0 platform and LiDAR.

The European Union set a 21% tariff on Nio imports.

Lucid (LCID) is another EV stock to avoid. Shares lost 3.7% yesterday and are at risk of breaking an uptrend that began at $2.49 in mid-June. Saudi backing would ensure that Lucid faces no liquidity risks. But sales volumes are not big enough to offset losses.

Tesla (TSLA) is the likely survivor in the EV market. It entered the market first and has a substantial lead. The stock bottomed at around $180 and closed at $227.20.

Despite raising billions from its retail investors, GameStop (GME) is a stock to avoid. Shareholders are waiting for CEO Ryan Cohen to unveil a plan that would fix the broken business. GME stock closed below $20 on Wednesday.