Electric vehicle (EV) company Fisker (NYSE:FSR) has had a roller-coaster year. But now with 2021 reaching a close, FSR stock is on a roll. Specifically, the month of November was big for the company, highlighted by an Ocean EV unveiling at the LA Auto Show. FSR stock closed out October at $16.05. By the last day of November, it was worth $21.39. That’s a 33% gain — not bad for one month.
Can the climb continue? After all, although we have finally seen a completed version of the vehicle, the Fisker Ocean is still a year from production in November 2022.
A lot could go wrong between now and then. It’s also possible that the excitement over the Ocean’s debut has boosted FSR stock to a point where further gains are unlikely, at least in the short term. As such, it’s time to take a closer look at this Portfolio Grader “C” rated stock and see if it deserves a spot in growth-oriented portfolios.
FSR Stock: The Ocean Is Real and Consumers Are Onboard
The start of 2020 was not long ago, but it was the beginning of a new era. Tesla (NASDAQ:TSLA) had begun ramping up to mass production levels. In 2019, the EV maker delivered 367,500 vehicles, up 50% from the prior year. Further, a total of 2.1 million EVs had been sold globally in 2019 as well. Meanwhile, CEO Henrik Fisker was preparing for CES 2020 with his prototype battery-powered Ocean SUV.
Details were lacking at CES and Fisker’s claims were taken with a big grain of salt. For instance, an article in The Verge noted that Fisker was known for “ambitious vision” but also had a reputation for his “trouble executing.”
Fast forward to November 2021.
Climate change reality is hitting home. Now, the White House is pushing to make half of all vehicles sold in the U.S. zero-emission certified by 2030. That means there will be a lot of EVs. One recent report put the value of the global EV market at over $2.49 trillion by 2027.
So, now publicly traded, Fisker is capitalizing on these catalysts by showing off its production-ready Ocean SUV. The battery-powered Fisker Ocean starts at $37,499 and can be had for just $379 per month on a flexible lease. Plus, it’s not just any old EV — the model is also one of the world’s most sustainable vehicles, thanks to features like a vegan leather interior and its extensive use of recycled materials.
The fact that FSR stock got a bump in November is really a no-brainer, then. But more importantly, Fisker is showing every sign that it’s executing.
The Bottom Line on FSR Stock
It’s easy to see the potential in Fisker. The market for EVs is huge and, after decades as a curiosity, battery-powered vehicles are going mainstream.
Tesla has shown just how spectacular the growth potential is for EV makers. Now, the company has a first-mover advantage and is unlikely to lose market dominance anytime soon.
I’m not trying to suggest that Fisker is another Tesla. However, Tesla has shown it’s possible to do the unthinkable — not only starting an EV company from scratch, but also going from zero production capacity to 238,000 EVs manufactured in a quarter.
Will FSR stock ever see the explosive growth that TSLA stock has seen? It’s 33% climb in November was a good start. There’s also no shortage of analysts who are bullish on Fisker. For instance, Bank of America analyst John Murphy recently upgraded his price target from $18 to $24.
The bottom line here? Fisker has potential and the risk involved with investing in this company is considerably less than it once was. With production a year out, there are ways its plans could still go sideways. However, with production-ready versions of the Ocean already on display — details published and pricing confirmed — FSR stock is looking more and more like a good candidate for long-term growth.
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.
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