- Fisker (NYSE:FSR) is falling on a stock offering announcement
- It plans to offer up to $350 million of new FSR shares
- This dilutes current shares and explains today’s drop
Fisker (NYSE:FSR) stock is falling on Tuesday after the electric vehicle (EV) company announced plans for a $350 million stock offering.
The stock offering from Fisker will allow it to sell up to $350 million worth of FSR stock at market value. This comes as the EV company seeks to raise funds for its business, but what does it plan to do with that money?
According to Fisker, the funds generated from the stock offering will go toward several uses. Among these are Fisker Personal Electric Automotive Revolution development, other EV development, retail development, additional technology development, as well as general corporate purposes.
News of FSR stock dropping as the company plans to sell additional shares makes sense. The shares being offered by it are new to the market and dilute those already trading.
Today’s news has a fair amount of FSR stock trading. As of this writing, more than 5.5 million shares of the company’s stock have changed hands. That’s approaching its daily average trading volume of about 6.7 million shares.
FSR stock is down 14.2% as of Tuesday morning and is down 43.4% since the start of the year.
Investors seeking out more stock market news for today are in the right place!
We’ve got all the hottest stock market news for Tuesday with our daily coverage of the space! A few examples of that include why Pinterest (NYSE:PINS) stock is falling, what has shares of Zoom Video (NASDAQ:ZM) stock rising higher, as well as what’s going on with shares of Gores Guggenheim (NASDAQ:GGPI) stock. You can catch up on all of this news by following the links below!
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On the date of publication, William White 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.