Fisker (NYSE:FSR) stock is rising as the electric vehicle (EV) maker signed three new dealers in New York, Florida and Indiana.
The company said it has gotten interest from over 250 dealers for its new “dealer partnership” business model.
Fisker rose 12.6% on Feb. 27 and another 9% overnight. But FSR stock is still priced at just 74 cents per share, and the market capitalization is below $400 million.
Saving Fisker
Fisker says it will release fourth quarter and full-year results tomorrow, Feb. 29. In the third quarter, it lost more money, $95 million, than the $71.8 million it brought in.
Fisker produced 10,142 cars in 2023, delivering 4,700 to customers at about $69,000 each.
Unlike rivals Lucid Motors (NASDAQ:LCID), backed by Saudi Arabia, and Rivian Automotive (NASDAQ:RIVN), backed by Amazon (NASDAQ:AMZN) and the state of Georgia, Fisker lacks huge backers. Small investors own over half of the company.
Shares peaked in 2021 at about $25 each, and their value has been falling steadily for over two years. The share price fell below $1 in mid-January and is down 61% on the year. The company has gotten a de-listing notice from the New York Stock Exchange. Regulators are investigating possible rollovers of the car. A YouTube reviewer recently called it “the worst car” he has ever looked at.
I warned investors away from Fisker soon after its special purpose acquisition company (SPAC) merger in 2020, and I haven’t changed my mind.
Founder Henrik Fisker, who tried and failed with hybrids over a decade ago, has sought to reassure investors lately. He said last month the company could earn $290 million by selling its 2023 inventory.
FSR Stock: What Happens Next?
The EV game has moved on from the luxury Fisker promised. What investors want now are inexpensive cars that can be sold in huge quantities and at a profit.
As of this writing, Dana Blankenhorn held a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
