Fisker’s race to the topEV start-up Fisker gives a peak at its upcoming EV, which is apparently revving to outrun Tesla.
- Fisker unveiled its new electric SUV, which is due to start production in November 2022 and joins the likes of Lucid (LCID) and Rivian (RIVN) in competing with the OG Tesla (TSLA) – apparently, it's already a (small) step ahead.
- The SUV will have a superior battery and a drive range of 350 miles compared to Tesla’s (TSLA) 330 miles.
- Shares dropped 10% on Wednesday on a broader sell-off in the EV market, though it’s still up over 30% for the month.
Fisker: Finally a contender to the Tesla throne?Competition in the EV space is heating up, and Fisker soars 22% on Tuesday following an upgrade from Morgan Stanley dubbing it the “electric vehicle architect.” Could it challenge Tesla for the top dog spot?
Right now, it’s not looking likely, given that the firm has yet to even begin production on any electric vehicles, never mind produce a functioning one. But that could change. Fisker is rapidly carving a space for itself as a potential threat to existing players in the EV space, and saw its shares shift into high gear on Tuesday with their highest one day increase since February, popping just under 30% during trading hours before closing up over 21% at $18.27.
The push forward was thanks to Morgan Stanley analyst Adam Jonas, who posits that Fisker could be one of those rare EV start-ups that might actually launch its vehicles on time, projecting that the stock has the potential to more than double by the end of the year.
Fisker, which is aiming to produce an all-electric SUV, went public on October 30 last year through a SPAC listing that saw shares bounce 19% on their first day of trading, before closing up 13% at $10.14. Prices have been volatile since then, not least because of the external economic pressures and global semiconductor shortage, but the firm has staked a strong market claim with robust first and second quarter earnings, a recent delivery agreement with a U.K.-based electric car subscription service, and a listing on the Russell 3000. Although the company hasn’t yet produced a car, the “Ocean” SUV is expected to arrive in 2022, and advance reservations already jumped from 12,000 to 16,000 in the first quarter of this year. Its second car will be produced by well-known Apple supplier Foxconn, and is expected in 2023.
Jonas is full-on bullish on the firm, resuming coverage this week with a buy rating and setting a 12-month price target of $40 – a 166% upside from Monday’s closing price of $15.03. There have been a whole bunch of companies jostling into the EV space recently: including Cannoo (GOEV) and Lordstown Motors (RIDE), but Jonas places Fisker as his highest-rated EV start-up yet.
We believe (Fisker) may be one of the only EV-related startups to actually launch on time and ramp efficaciously in late 2022. Its business model is to be an EV design-and-engineering lab and consumer-experience architect.
Fisker revs up on Russell inclusionShares of electric vehicle maker Fisker are up over 9%, and it closed Wednesday at its highest since late March on the back of news that it’s joining the Russell 3000 index from June 28.
As the electric vehicle market takes off off, this new player has been making its mark – and now it’s finally getting some recognition for all the hard work. Fisker, which is aiming to produce an all-electric SUV, went public on October 30 last year through a SPAC in a listing that saw shares bounce 19% on their first day trading, before closing up 13% at $10.14.
It’s been a bit of a rollercoaster since then, but the firm has staked a solid market claim with strong Q1 earnings and a recent delivery agreement with a U.K.-based electric car subscription service. Although nothing is on sale yet, the “Ocean” SUV is expected to arrive in 2022, and advance reservations for the car already jumped from 12,000 to 16,000 in the first quarter of this year. Its second car will be produced by well-known Apple supplier Foxconn, and is expected in 2023.
While an index addition obviously is no guarantee of performance, being part of such a recognized benchmark often adds to a bullish case. It draws attention to the company, and also means that mutual and exchange traded funds will be able to Fisker to their investment mandates – with the consequent wave of buying likely to push up the price. It’s possible some of yesterday’s gains were thanks to preemptive buying from companies that manage index-based funds.
Inclusion in the well-known Russell indexes is another important milestone for our company following our public listing last October. Our brand is focused on design, a seamless ownership experience and sustainability, including our recently announced aim to bring a 100% climate-neutral vehicle to market by 2027. Our plan is on track to launch at least four new vehicles into the market before 2025. I believe this strategy will make us the fastest growing pure EV maker over the next four years,
chairman & CEO Henrik Fisker commented.