Fisker (NYSE:FSR) stock is in focus this morning after the company announced it finished mileage testing on its Ocean SUV. It is now from the Environmental Protection Agency (EPA) before going into full production on April 20.
Shares of FSR stock opened on April 6 at $5.34, representing a market capitalization of about $1.7 billion.
The Fisker Story
Fisker was one of several American electric car companies launched in the wake of Tesla’s (NASDAQ:TSLA) success. It was the second try for CEO Henrik Fisker. His first attempt failed because it was too early to the market.
His second attempt may be too late. Tesla continues to scale. China’s electric vehicle (EV) companies are beginning to export. Rivian (NASDAQ:RIVN) backers include Amazon (NASDAQ:AMZN) and the state of Georgia. Lucid Motors (NASDAQ:LCID) has investment from Saudi Arabia. The Ocean is being offered , with a range of over 400 miles per charge.
Fisker’s hope for profit rides on , due to begin production next year. The crossover will be built in Lordstown, Ohio, by
Foxconn, which assembles the Apple (NASDAQ:AAPL) iPhone. It will sport a price tag of $30,000. This means it will be eligible for tax credits under the Inflation Reduction Act. Fisker has also reached an agreement with ChargePoint (NASDAQ:CHPT) for charging Fisker cars .
Fisker came public through a special purpose acquisition company (SPAC) in October 2020 . It now trades at a little over half that, but optimism is growing. Citi recently issued , based on expected shipments of .
What Happens Next for FSR Stock?
I warned two years ago not to put any money into Fisker you can’t afford to lose. I would prefer the bulls to be right, but I’m still not betting on it.
On the date of publication, Dana Blankenhorn held a long position in AAPL and AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
