In the world of pre-revenue electric vehicle plays, Fisker (NYSE:FSR) has been an incredible winner. Indeed, since dipping below its SPAC IPO price of $10 in May, FSR stock has approximately doubled to nearly $20 per share.
Indeed, this recent move higher is impressive, given all the headwinds EV investors have faced of late. A global chip shortage has threatened production growth across this sector. Increasing concerns around competition in the electric SUV space has also been a concern for players like Fisker. And growth stocks generally took a breather in recent months amid inflation concerns and climbing bond yields.
That said, it appears investors now believe these risks are more than priced in. Speculative EV plays like Fisker are gaining momentum. And today, investors have a reason to believe that Fisker is in fact not that speculative at all.
Let’s dive into today’s announcement, and why it’s a big deal for EV enthusiasts.
Key Announcement Drives FSR Stock Higher
Today, Fisker announced a significant step toward commercializing its Ocean SUV. The company officially opened a number of Fisker-dedicated operational areas at Magna’s (NYSE:MGA) manufacturing facility in Austria.
This move opens the possibility for production to begin. More specifically, Fisker and Magna shared a few key updates around the production timeline. They said that the first customer units will be manufactured in 506 days, in November 2022. CEO Henrik Fisker said:
“The Ocean program continues to progress exactly how we forecast. Seeing areas such as prototype manufacturing and testing facilities ready for the Ocean was a motivating sight for everyone at Fisker and Magna. Having the confidence that the Ocean will launch on time with outstanding quality continues to validate our asset-lite strategy and specifically, our partnership with Magna.”
Indeed, today’s announcement is a step in the right direction for Fisker. Accordingly, this stock could see some momentum moving forward as the company nears production.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.