Fisker (NYSE:FSR) stock resisted the downtrend in electric vehicle (EV) stocks, promising to deliver its unsold 2023 inventory by the end of the first quarter.
The move will free up about $290 million. The cash can come in because an institutional investor waived previous claims concerning the delivery of its September 10Q report and the company’s cash balances.
But this isn’t Tesla (NASDAQ:TSLA). A gain of 17% on Jan. 22 and a further 12% gain in overnight trading brought Fisker’s stock price to $1.04 per share. That’s a market capitalization of $471 million.
All the good news comes with caveats. Fisker claims of “over 100 dealers” expressing interest are contingent on closing some deals during a “dealer event” on Jan. 29. Excitement around the brand is based on meetups with 2,500 customers and prospects on Jan. 20.
Fisker Fight Another Day
Fisker is two years behind the market. It sells an expensive EV and hasn’t scaled production. It also lacks a big-name, deep-pocketed backer like Amazon (NASDAQ:AMZN), which owns part of Rivian (NASDAQ:RIVN), or Saudi Arabia, which owns most of Lucid (NASDAQ:LCID).
In its September quarterly report, Fisker reported cash of $628 million after losing $305 million on operations. Revenue came in at about $71.8 million, so getting $290 million from deliveries looks huge.
The Fisker Ocean is an SUV that can cost anywhere from $38,000 to $69,000, depending on trim and options. Models listed on the company’s Web site averaged at the high end of that range.
FSR Stock: What Happens Next?
Fisker produced about 10,000 cars in 2023, delivering 4,700 after promising to make over 20,000 at one time. It has not yet offered numbers on 2024 production. Fisker has 10 analysts, equally divided among buyers, sellers and holders.
As of this writing, Dana Blankenhorn had a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
