Why November 17, 2022 Is So Critical for Fisker Stock

Electric vehicle (EV) startup Fisker (NYSE:FSR) is down 27% so far in 2022. This is actually just the tail end of a slide that began last November, shortly after the company showed off a production-ready Fisker Ocean EV at the LA Auto Show. In addition to the finalized vehicle, Fisker released official pricing details. Most important of all, though, it announced a production start date: Nov. 17, 2022. Remember that date. Between now and then, you can expect FSR stock to be all over the place.

Mobile phone with company logo of US electric vehicle manufacturer Fisker Inc. on screen in front of webpage
Source: T. Schneider / Shutterstock.com

Right now, Fisker is trading around the $11 to $12 level. That’s well above the stock’s debut price but also well below the high $28.50 close last February, or even the $21.28 close from last November in the aftermath of the auto show excitement.

For those considering FSR stock for their portfolio, the current price seems like a bit of a steal, especially for an EV maker with a highly anticipated, much-hyped vehicle. However, the problem is that production date. Until that day in November, anything is liable to happen with FSR stock.

FSR Stock: The Story Is Now All About Nov. 17

Back in Novemeber, as part of its presentation at the LA Auto Show, Fisker announced a crucial detail:

“The Fisker Ocean revealed in Los Angeles is a production-intent design, with manufacturing to commence on Nov. 17, 2022, at Magna-Steyr’s carbon-neutral factory in Graz, Austria.”

The company released plenty of details about the Ocean. This included pricing, trim levels, battery range for different models and affordable leasing options. It also touted advanced technology. This included a 17-inch display, the Fisker Intelligent Pilot advanced driver assist system (ADAS), the ability to use the Ocean as a home backup battery and a SolarSky roof that can help trickle-charge the vehicle’s battery. The company also confirmed eco-friendly features like a vegan leather interior.

All of this is great news for people who want to buy a Fisker Ocean. It has also been very good news for those who invested in FSR stock. EV startups can be risky. Further, CEO Henrik Fisker has already had one EV company go bankrupt on his watch.

In particular, Henrik Fisker has a reputation as a visionary who sometimes fails to deliver on his promises. Just last year, the CEO gave up on solid-state batteries which the company had been heralding as “breakthrough” tech, able to charge in one minute and deliver 500 miles of range.

With that in mind, the Nov. 17 production date for the Ocean has calmed a lot of nerves. But hitting the date will be critical to the value of FSR stock. The start of production will be validation for investors. It goes without saying that, should the company miss that deadline, it will be bad news.

The Bottom Line on Fisker

Shareholders of FSR stock have seen the value of their investment surge and drop dramatically since the EV maker went public. Much of the movement has been news-driven. For example, last February news of a new manufacturing partner and a four-fold increase in Ocean reservations sent FSR stock soaring. It gained 90% in just three weeks.

Over the next ten weeks, it gave those gains back and then some. Most recently, the stock rallied some 50% over the course of three weeks in October as buzz built for the LA Auto Show, where a production-ready Fisker Ocean was expected to debut.

There is going to be plenty of news — good and not so good — between now and Nov. 17. You can expect the market to react to that news. And if there are periods of dead air, speculation around the company’s progress will undoubtedly spread. Rumors of challenges and issues, rumors of competitors falling behind and rumors about rising or falling demand. News or speculation, FSR stock will rise and fall with the headlines.

The bottom line on Fisker? I think this Portfolio Grader C-rated stock has the potential to be a solid investment with real long-term growth potential. The EV market is exploding and the Fisker Ocean is a compelling option. Still, be prepared for a rough ride between now and November — and for a few months after that as production kinks get worked out.

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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