Fisker (NYSE:FSR) stock resisted the downtrend in electric vehicle (EV) stocks, promising to by the end of the first quarter.
The move will free up about . The cash can come in because an institutional investor waived previous claims concerning the delivery of its and the company’s cash balances.
But this isn’t Tesla (NASDAQ:TSLA). A gain of 17% on Jan. 22 and a further 12% gain in overnight trading brought Fisker’s stock price to $1.04 per share. That’s a market capitalization of $471 million.
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All the good news comes with caveats. Fisker claims of “over 100 dealers” expressing interest are contingent on closing some deals during a “dealer event” on Jan. 29. Excitement around the brand is based on meetups with and prospects on Jan. 20.
Fisker Fight Another Day
Fisker is two years behind the market. It sells an expensive EV and hasn’t scaled production. It also lacks a big-name, deep-pocketed backer like Amazon (NASDAQ:AMZN), which owns part of Rivian (NASDAQ:RIVN), or Saudi Arabia, which owns most of Lucid (NASDAQ:LCID).
In its September quarterly report, Fisker reported cash of after losing on operations. Revenue came in at about $71.8 million, so getting $290 million from deliveries looks huge.
The Fisker Ocean is an SUV that can cost anywhere from $38,000 to , depending on trim and options. Models listed on the company’s Web site averaged at of that range.
FSR Stock: What Happens Next?
Fisker produced about after promising to make over 20,000 at one time. It has on 2024 production. Fisker has 10 analysts, among buyers, sellers and holders.
As of this writing, Dana Blankenhorn had a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
