2020 has been a year to remember. We’ve been working through a coronavirus pandemic, an oil price war, a stock market crash, and a tumultuous Presidential election. Another notable event this year has been the explosive rise of electric car stocks.
The latest high-profile entry is actually an old one come back to life. Luxury electric car maker Fisker (NYSE:FSR) is back, this time taking aim at a mainstream, eco-friendly audience. New trading with FSR stock is already riding the surge with other electric car stocks as the company prepares to launch its Ocean SUV.
The question is, with the Ocean launch not expected until 2022, how long can FSR stock maintain this momentum? And once the Ocean arrives, will Fisker be able to make a viable go of things this second time around?
An EV Pioneer That Struggles to Execute
There is one EV company that has led the remarkable rise in popularity of electric cars — and it’s not Fisker. Henrik Fisker is an EV pioneer along with Elon Musk, but even though Fisker’s Karma beat the Model S to market, the two rivals saw their electric car companies go in opposite directions.
The Fisker Karma, a plug-in luxury car, was unveiled in 2008 and the company started taking pre-orders at $100,000 a pop. Only 2,000 Fisker Karma’s were ever delivered to customers, and those were plagued with bugs and defects.
The Karma missed its launch date, and the company lost thousands of dollars on every one it sold. Fisker received more than $200 million from the Department of Energy, bought an abandoned auto plant in Delaware, and ultimately collapsed into bankruptcy.
Henrik Fisker didn’t give up. In 2017, he announced a new luxury EV intended to be a Model S rival. He made lofty promises about the Fisker EMotion, including a 400 mile range, autonomous capability, a top speed of 161 miles per hour, and a revolutionary nine minute recharge time.
Fisker showed off an EMotion concept at the 2018 Consumer Electronics Show. The Fisker EMotion was back as a concept at the 2020 Consumer Electronics Show — this time as a crossover.
At the time, the company said the $130,000 EMotion was still on track for production, but would be delayed until a new SUV called the Ocean went into production in 2021.
Waiting for the Ocean
This brings us to the Ocean.
Fisker pivoted, aiming for the mainstream market instead of the buyers who can drop $130,000 on a car. The company also decided to go all-in on the growing consumer interest in all things green — while also acknowledging the (conflicting) demand for SUVs over sedans.
So the Fisker Ocean is a compact SUV that starts at $37,499 before rebates. It has a vegan interior. The name is inspired by the extensive use of “upcycled” materials made from discarded products like fishing nets. The sunroof doubles as a solar panel that helps to charge its battery.
About a month ago, the company said it had nearly 9,000 pre-orders for the Ocean. However, it costs just $250 to reserve one — and most of that is refundable should the buyer change their minds. The release date was pushed to 2022.
If Fisker is able to pull off a launch this time, the Ocean is priced right, it has widespread appeal, and it’s coming just as electric cars are going mainstream.
Bottom Line on FSR Stock
Should you consider adding FSR stock to your portfolio? After all, EV stocks are on fire and FSR stock has nearly doubled in value since its launch several weeks ago. A new administration is promising to give electric cars an even bigger boost. And Fisker has the Ocean — a battery powered SUV that ticks every box, from affordability to sustainability.
Just know that an FSR investment is not entirely risk-free. This EV pioneer has presumably learned a lot since its first run ended (and from the EMotion flip flops), but the Ocean is still more than a year from release.
In the meantime, other automakers won’t be sitting still. Investors are pumped up right now, but the challenge for Fisker will be to keep the excitement levels up during that long wait to the Ocean launch.
Once that happens, it’s going to be an entirely new ball game for FSR stock depending on how consumers react to the Ocean.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.