2 Stocks That Could Turn $100,000 Into $0 Faster Than You Think

• Plug Power and Lucid some person antagonistic gross margins and are burning done cash.

• Plug Power has a past of underdelivering.

• Lucid's currency outflows this twelvemonth volition beryllium utmost erstwhile compared to its marketplace cap.

• 10 stocks we similar amended than Plug Power ›

If you're betting large connected Plug Power (NASDAQ: PLUG) oregon Lucid Group (NASDAQ: LCID), you should astir apt deliberation again. These are the benignant of stocks that could easy hitch distant a $100,000 nest ovum successful the blink of an eye. Both companies person the beardown imaginable to spell bankrupt successful the coming years, with the stocks going to zero.

Let's instrumentality a adjacent look astatine some stocks.

Plug Power fancies itself arsenic the adjacent next-generation hydrogen substance compartment company, but its halfway concern is really providing substance cells that spell into forklifts and different worldly handling equipment. Fuel cell-powered forklifts are fashionable successful high-volume warehouses and fulfillment centers that tally 24/7, arsenic operators conscionable person to refuel the substance compartment and not recharge a battery. Meanwhile, the manufacture has moved distant from gasoline-powered forklifts owed to information issues utilizing them successful an enclosed building.

This would look to beryllium a bully business, but it has not been for Plug Power. The institution besides provides the hydrogen substance to its customers, which it has agelong sold astatine a loss. To marque matters worse, it has besides been selling its instrumentality and infrastructure astatine a nonaccomplishment arsenic well.

To effort and alteration what is an uneconomical concern model, Plug Power is successful the process of gathering retired a strategy of hydrogen plants to nutrient its ain hydrogen to beryllium capable to merchantability astatine a profit. It's besides undergoing a restructuring programme and has looked to rise prices. However, frankincense far, the institution is inactive producing antagonistic gross margins and has some monolithic antagonistic operating currency travel and escaped currency flow.

While the institution has pledged to get to break-even gross margins by adjacent year, that would inactive not lick each its problems. Meanwhile, the institution has a agelong past of not delivering connected its projections.

Lucid's banal precocious deed an all-time low, but that doesn't mean it doesn't person further to fall. Like Plug Power, the electrical conveyance (EV) shaper has antagonistic gross margins and is bleeding cash. Just past quarter, it burnt done much than $950 cardinal successful cash, and it's gone done much than $2.5 cardinal successful currency truthful acold this year. Notably, the company's marketplace headdress is lone astir $3.7 billion, truthful this is extreme.

Lucid is betting large connected its introduction into the luxury EV SUV marketplace with its Gravity model, which it thinks volition complement its luxury sedan, Lucid Air. It's besides looking to motorboat a cheaper midsize platform. However, the institution isn't seeing the gross borderline step-change that rival Rivian has seen erstwhile it switched to a zonal architecture that importantly reduced costs.