Fisker (NYSE:FSR) stock is in focus this morning after the company announced it finished mileage testing on its Ocean SUV. It is now awaiting certification from the Environmental Protection Agency (EPA) before going into full production on April 20.
Shares of FSR stock opened on April 6 at $5.34, representing a market capitalization of about $1.7 billion.
The Fisker Story
Fisker was one of several American electric car companies launched in the wake of Tesla’s (NASDAQ:TSLA) success. It was the second try for CEO Henrik Fisker. His first attempt failed in 2007 because it was too early to the market.
His second attempt may be too late. Tesla continues to scale. China’s electric vehicle (EV) companies are beginning to export. Rivian (NASDAQ:RIVN) backers include Amazon (NASDAQ:AMZN) and the state of Georgia. Lucid Motors (NASDAQ:LCID) has investment from Saudi Arabia. The Ocean is being offered in Europe, with a range of over 400 miles per charge.
Fisker’s hope for profit rides on the Pear, due to begin production next year. The crossover will be built in Lordstown, Ohio, by contract manufacturer Foxconn, which assembles the Apple (NASDAQ:AAPL) iPhone. It will sport a price tag of $30,000. This means it will be eligible for tax credits under the Inflation Reduction Act. Fisker has also reached an agreement with ChargePoint (NASDAQ:CHPT) for charging Fisker cars in North America.
Fisker came public through a special purpose acquisition company (SPAC) in October 2020 at $10 per share. It now trades at a little over half that, but optimism is growing. Citi recently issued a positive report, based on expected shipments of 42,000 cars this year.
What Happens Next for FSR Stock?
On the date of publication, Dana Blankenhorn held a long position in AAPL and AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.