Fisker (NYSE:FSR), a victim of the recent pullback in electric vehicle stocks, is once again racing higher today. In fact, FSR stock is taking over Wall Street on Friday, with shares up 25%. So what happened? And what else do you need to know?
Investors should know that this recent price trajectory for Fisker began earlier this week. Essentially, the story for Fisker revolves around an iconic designer (Henrik Fisker), the luxury passenger market and bold, eco-conscious designs. Its flagship all-electric vehicle is the Ocean SUV, which it plans to launch at the end of 2022. Investors are betting on the company for its production strategy (asset-light with partnerships) and its vehicles. However, up until this week, there has only been one vehicle in the pipeline.
That all changed on Wednesday. Fisker started the recent rally in FSR stock by announcing its latest partnership with Taiwanese Foxconn Technology. Foxconn, typically known for being the maker of Apple (NASDAQ:AAPL) iPhones, is joining forces with Fisker to produce an EV. This second car will give it access to another segment of the passenger market. And importantly, Fisker hopes to have it ready for launch soon after the Ocean. A company press release suggests the newest vehicle could be ready for manufacturing some time in 2023.
But today, it looks like the Ocean SUV, the first vehicle for Fisker, is responsible for a major rally.
According to the company, reservations for that vehicle are on a major uphill climb ahead of its launch. During its quarterly press release, Fisker shared that reservations are up 400% since mid-October. More specifically, Fisker has tracked 12,467 reservations as of Feb. 25.
So what else do you need to know?
FSR Stock Rallies on Ocean SUV Hopes
That reservation update is catching the eye of retail investors, but importantly, it is also pleasing Wall Street analysts. Today, Morgan Stanley analyst Adam Jonas came out in full force in support of Fisker. He said that right now, the risk-reward balance on FSR stock is particularly attractive. He called it his sleeper stock pick among EV stocks, and also commented favorably on the Ocean SUV and its latest vehicle announcement.
For investors, it is important to understand why Jonas is bullish on Fisker. The heart of his argument is that partnerships with Foxconn and Magna International (NYSE:MGA) are a big deal. They show that legitimate companies are endorsing the EV startup. And they also speak to a strength Fisker has in a busy market. Although there are multiple other publicly traded EV companies, Fisker is hoping to stand out by leaving production up to other players. While other companies work to bring factories online, Fisker can move forward with deals and start delivering its all-electric cars.
Keep the Fisker story on your radar here. If reservations continue to grow, FSR stock should benefit.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.