Insights

Why Fisker Stock Stalled and Sputtered Today

What happened

Fisker (NYSE: FSR) might have a hot-looking new electric vehicle (EV) popular with customers in the pre-order phase, but it wasn’t such a hot item on the stock market Thursday. The company’s shares skidded to a marginal loss on the day, as investors reacted slightly negatively to its second-quarter performance and its latest news.

So what

Fisker announced the results of that quarter after market close on Wednesday, meaning investors had quite some time to chew over the numbers before the start of Thursday trading.

For the quarter, Fisker — still a largely pre-revenue company — nonetheless booked around $10,000 in revenue, and managed to trim its net loss. This was reduced to just shy of $106 million, against the more than $122 million deficit of 2021’s second quarter.

In per-share terms, Fisker lost $0.36 for the period, which compares favorably to the $0.41 collectively estimated by analysts. Those prognosticators, though, believed the company would earn a bit more scratch on the top line — their revenue estimate was for $11,670.

But better times are soon to come, at least according to Fisker. The company’s namesake founder and CEO Henrik Fisker announced that it has fully sold out of the 5,000 limited edition Fisker Ocean One SUVs it allotted to pre-sale customers, and that production of these electric vehicles (EVs) would begin this Nov. 17.

Now what

Fisker the man didn’t hesitate to add that Fisker the company stands to make roughly $350 million in revenue once all 5,000 of the limited edition Ocean Ones are delivered. 

It’ll need the money. The company proffered guidance that only covered costs; for 2022, it estimates that research and development outlays will total $330 million to $380 million. Selling, general, and administrative expenses should swallow another $105 million to $120 million, and capital expenditures will amount to $280 million to $290 million. Those figures might have given investors pause amid the excitement of looming deliveries.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info