Fisker Stock: EV Stock in Bear Market Territory But Has 155% Upside

Fisker Stock: EV Stock in Bear Market Territory But Has 155% Upside

Why FSR Stock Deserves Attention

Fisker Inc (NYSE:FSR) is an exciting electric vehicle (EV) stock that has been beaten down over the last number of months on concerns about inflation and rising interest rates. Fisker stock is also facing headwinds from ongoing concerns about the COVID-19 pandemic and the Russian invasion of Ukraine.

With FSR stock down by approximately 60% from its March 2021 high, now might be a great time for investors to dig deeper into this company.

Fisker Inc’s flagship product is the “Fisker Ocean,” an all-electric SUV made from recycled and vegan materials. The company’s second vehicle, the “Fisker PEAR,” is a five-passenger urban EV.

Environmental benefits aside, the big question for many drivers is whether the Ocean and PEAR will be fun to drive. With Henrik Fisker as chairman and CEO of Fisker Inc, it’s fair to say they will be. He’s the individual who designed the “Aston Martin DB9,” “Aston Martin V8 Vantage,” “BMW Z8,” “Fisker Karma,” and “Galpin-Fisker Mustang Rocket.”

Advertisement

Fisker Inc has been fielding calls from large vehicle rental companies that are interested in both the Ocean and the PEAR. Global rental companies could swoop in and buy up a big chunk of the inventory once the vehicles start to roll off the production line.

On February 16, Fisker reported fourth-quarter and full-year financial results that were in line with expectations. The company reported a net loss of $138.4 million, or $0.47 per share. (Source: “Fisker Inc. Announces Fourth Quarter and Fiscal Year 2021 Financial Results,” Fisker Inc, February 16, 2022.)

Fisker ended 2021 with cash and cash equivalents of $1.2 billion, which is more than enough to take the company to its November production date for the Fisker Ocean.

With meaningful revenue expected to come in over the next few quarters, Wall Street analysts seem to think it’s time for investors to get their feet wet with Fisker stock.

Of the analysts providing a 12-month share-price forecast for Fisker Inc, their average target is $23.57 and their high estimate is $30.00. This points to potential gains of 93% and 156%, respectively, from FSR stock.

Chart courtesy of StockCharts.com

Fisker Inc to Start EV Production in November

Production of the Fisker Ocean is slated to begin in November, with deliveries to start in the U.S. and parts of Europe by the end of the year. Deliveries to China are expected to begin in 2023. (Source: “Fisker Ocean,” Fisker Inc, last accessed March 10, 2022.)

“2022 has kicked off at an amazing pace, with continued laser focus on delivery of the Fisker Ocean as priority one,” said Henrik Fisker. “We are now into the next-level prototype build phase and progressing through our vehicle testing and certification plan.” (Source: Fisker Inc, February 16, 2022, op. cit.)

As of February 14, 2022, reservations for the Fisker Ocean were over 30,000. The net daily retail reservation rate in 2022 year-to-date has increased by more than 400% compared to 2021 and is on an annualized pace of more than 55,000.

The initial average selling price of the Fisker Ocean is approximately $56,000. The current reservations have an indicative future gross revenue value of approximately $1.7 billion.

On February 15, Fisker Inc opened up the reservation process for the PEAR, which stands for “personal electric automotive revolution.” (Source: “Fisker Inc. Now Accepting Reservations for its Second Product, the Revolutionary Fisker PEAR,” Fisker Inc, February 15, 2022.)

Within two days of the PEAR waiting list being opened, it had 1,000 reservations, even though deliveries aren’t expected to start until 2024.

The PEAR will be manufactured by Foxconn Technology Group (TPE:2354, OTCMKTS:FXCOF) in Ohio. Production of the PEAR will reach 5,000 per month in 2023, and once manufacturing is at full capacity, it will reach 250,000 PEAR vehicles per year.

Analyst Take

Most EV stock investors focus on big names like Tesla Inc (NASDAQ:TSLA), but for those seeking an overlooked EV stock that could come tearing out the gates over the coming months, Fisker stock should be on their radar.

As mentioned earlier, Fisker Inc’s first vehicle is starting production in November and will become available immediately in the U.S. and parts of Europe. The company’s second vehicle will hit the roads in 2024. Both EVs have been experiencing high reservation numbers.