Electric vehicle startup Fisker (NYSE:FSR) is on a roll, popping several times in recent trading days on positive news. Tuesday is seeing a similar rally in FSR stock, with shares up roughly 5%. So what is behind the latest move? And what else do you need to know?
As a quick recap, Fisker is an electric vehicle company prepping to enter the luxury market with a big splash. It brings an iconic car designer and an all-electric Ocean SUV to the market. Last week, it added another catalyst. Through a partnership with Taiwanese Foxconn, Fisker will soon introduce another passenger car.
That announcement caught the attention of both retail investors and analysts. Morgan Stanley analyst Adam Jonas started to pound the table on FSR stock soon after the Foxconn release. According to Jonas, Fisker is a sleeper stock among other EV names. He also identified its asset-light model as a positive compared to other companies. Unlike some automakers who are spending time and capital to build up factories, Fisker is following a different approach. It is using partnerships with companies like Foxconn and Magna International (NYSE:MGA) to develop and deliver its cars.
While this is all good news, what is behind the most recent pop in FSR stock?
It turns out that Fisker is getting some love from a new community of retail investors. According to data from Unbias Stock, FSR is one of the top tickers discussed today on subreddit r/WallStreetBets.
FSR Stock Meets r/WallStreetBets
FSR stock is not new to r/WallStreetBets — or to other investing subreddits — but it seems that interest is growing. Along with this, Fisker is experiencing unusual trading volume. More than 49 million shares have traded hands today, compared to an average trading volume of 15 million. Perhaps this speaks to growing exposure on sites like Reddit that are popular with retail investors.
So what do the folks over on r/WallStreetBets have to say? In one post advertising due diligence on the company, the Redditor highlights the Foxconn partnership, the experience of founder Henrik Fisker, its valuation and its vehicle delivery projections. To summarize, “I am extremely bullish on Fisker.”
One other thing to note? According to Yahoo Finance, roughly 10% of FSR shares are being sold short. Perhaps that is yet another reason for Redditors to take notice.
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.