It hasn’t been a good week for Fisker (NYSE:FSR), but things may be about to shift. The electric vehicle (EV) producer has been struggling ever since it reported worse-than-expected losses for the third quarter of 2023. However, the company is gearing up to show the world two of its highly anticipated EV prototypes at its Grove Lounge in Los Angeles, California. Aspiring consumers and EV enthusiasts alike will get a better understanding of what Fisker has been working on and what they can expect in the coming year. This could be exactly the turning point that FSR stock needs to finally turn around after a difficult year.
It’s true that Fisker will need to demonstrate significant growth to make up the ground it lost in 2023. But EV markets are likely to rebound in the coming year. When they do, Fisker’s new vehicles will put it in a good position to ride the wave back to the top.
What’s Happening With FSR Stock
As noted, FSR stock has spent most of the year gradually declining, hitting an all-time low earlier this week. Today has been difficult, with shares falling 13% as of this writing. But while news of the new model debuts hasn’t helped boost shares in the short term, investors should be careful to examine Fisker’s prospects from a macro perspective. News of two upcoming EV models can’t overpower a poor earnings report. But in the future, it could easily help shares rise when the vehicles actually start hitting the road.
The two new EVs coming to the LA flagship are the Fisker PEAR SUV and the Fisker Alaska pickup truck. Both EVs will be on display from Nov. 18-26, the same week as the iconic Los Angeles Auto Show. As Fiskerati reports of the new Fisker EV:
“Notably, it won’t be any ordinary version of the Fisker PEAR; it will be the production-intent version. Fisker plans to unveil a new see-through A-pillar feature. They will also reveal a new cockpit compute system in the category-breaking urban lifestyle vehicle, which is an integral part of the Fisker Blade computer.”
The combination of both major events should generate the type of buzz that Fisker needs to start rising again. While FSR stock has fallen significantly over the past two quarters, its current low price point makes it an undervalued growth play for investors who don’t mind some risk. Additionally, the market is currently better for companies producing lower-cost EVs. If Fisker can continue producing new vehicles at competitive prices, it will be in a good position to start rising again in 2024.
On the date of publication, Samuel O’Brient did not hold (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.
