Electric vehicle (EV) startup Fisker (NYSE:FSR) has adopted a new distribution strategy that is supposed to increase the sales and deliveries of its vehicles. Using the new method, FSR was able to deliver 107 of its EVs on Nov. 16, the firm announced.
More About Fisker’s New Strategy
The firm disclosed that its new approach consists of “establishing its own delivery locations globally, staffed by ever-growing numbers of Fisker employees.” Additionally, FSR has hired transportation logistics firms to expedite the conveyance of its EVs to the delivery sites.
Fisker CEO Henrik Fisker says that he expects the company to deliver more than 107 EVs per day going forward.
The firm added that “many customers receive their car within four to seven days of completing their purchase.”
The Implications for FSR Stock
The fact that Fisker has managed to accelerate its deliveries is certainly very positive for the company and for FSR stock.
However, the bigger question for the company and for the owners of FSR stock is whether it can generate enough demand for its EVs to become profitable.
Given the huge amount of competition in the upper portion of the EV consumer sector, that may be a difficult feat for Fisker. Tesla (NASDAQ:TSLA) continues to command a large share of the sector, while BMW (OTCMKTS:BMWYY), Mercedes (OTCMKTS:MBGYY), Hyundai (OTCMKTS:HYMTF), and Rivian (NASDAQ:RIVN) are among the companies gaining traction in that part of the U.S. EV sector.
The Price Action of FSR Stock
FSR stock tumbled 27% in the five trading days heading into today, while it has sunk 48% in the previous month and 61% so far this year.
Today, FSR stock is also down by about 4%.
On the date of publication, Larry Ramer held a long position in RIVN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.