As 2021 winds to a close, the electric vehicle (EV) race continues to unfold, with new companies entering the space. Still others are taking unexpected turns. One such name is Fisker (NYSE:FSR), a Southern California-based EV producer that didn’t receive as much coverage throughout 2021. However, a recent victory at the LA Auto Show has propelled the company forward in the EV race, establishing it as a player to watch in 2022. The company’s Ocean SUV was voted the top crossover vehicle in its price category by thousands of fans. Since then, Fisker stock has been rising.
What’s Happening With Fisker Stock
Nov. 17 marked the global debut of Fisker’s new SUV sensation that has captivated EV aficionados. Fisker stock peaked that day after a week of growth. And despite falling yesterday, today has seen it rebound. As of this writing, shares are up more than 5% on the day, and despite some slight downticks, the stock appears to be on a positive trajectory. This momentum has also been helped by the Ocean winning the ZEVA (Zero Emission Vehicle Award) for its price category.
While it’s still in the red for the week, Fisker stock is up by more than 44% for the past month. That should be seen as a better reflection of the stock’s progress. The events of the week have created momentum for Fisker, but more importantly, they’ve helped establish it as a stock worth watching in a market often dominated by coverage of better-known companies.
Why It Matters
It’s important to note that yesterday didn’t bring declines only for Fisker stock. EV players were down across the board, including recent initial public offering (IPO) sensation Rivian (NASDAQ:RIVN) and popular meme stock Lucid Motors (NASDAQ:LCID). This was likely due to comments from popular television host Jim Cramer, who recently urged investors to unload half of their EV holds, naming both aforementioned companies as examples of stocks whose momentum was not sustainable.
However, since then, all three companies have recovered. Lucid is up more than 10% so far today, while Rivian’s gains are just shy of 10%. Another EV stock that has rebounded today is Mullen Automotive (NASDAQ:MULN), whose shares are up almost 7% as of this writing.
As we’re seeing, yesterday’s negative market trends clearly didn’t overpower the momentum being gained across the sector as EV players are recognized for their innovations. All three aforementioned companies also took home ZEVAs and have been quick to bounce back. While this feat may be less impressive for popular stocks such as Lucid and Rivian, for lesser known companies such as Fisker and Mullen, it demonstrates the power of good publicity and innovation recognition.
What It Means
InvestorPlace‘s Bret Kenwell recently argued that Fisker could be in for a good year. While it hasn’t received as much press as Rivian, it could ride the company’s coattails into 2022 as bulls eye it for a potential run.
While nothing is certain, if the company can hit its stride in the new year, Fisker stock could soar. The SUV category isn’t quite as oversaturated as that of the four-door sedan yet, and Fisker is producing one of the hottest ones available right now. Plus, the ZEVA award indicates that fans are already impressed with it.
Fisker stock is definitely worth watching, especially as the potential for a bull run increases.
On the date of publication, Samuel O’Brient 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.
