$FSR Might Soar On Deliveries Starting
After Fisker Inc. (NYSE: FSR) faced a lot of problems from rumors about its Fisker Ocean software and trouble obtaining the necessary certifications in the US, it seems like the EV maker is picking up its pace again. FSR expects to start volume deliveries of the Fisker Ocean on June 19, which may see FSR stock running due to a short squeeze since it is seeing high short interest currently. Furthermore, FSR also intends to open a delivery center in China and start deliveries in Q1 2024, which may see FSR revenues increase in 2024. In light of this, FSR stock could be a bargain at current levels.
FSR Fundamentals
Starting Deliveries
FSR is expecting to start volume deliveries in the U.S. and Europe on June 19, which may see FSR stock run due to a short squeeze since it is highly shorted with a short interest of 34.5% and 47.5% of its float on loan. At the same time, utilization rate remains high at 100%.
The high short interest FSR is seeing is due to the company sitting on only two cars delivered in Europe since the start of May due to not acquiring the necessary certificates to start delivering its vehicles in the U.S.
After sorting its delivery issues out, FSR plans to produce 1,400 to 1,700 vehicles by the end of June, ramping up production throughout the year to produce between 32,000 and 36,000 vehicles in 2023 to meet the 65,000 reservations that FSR had as of February 2023.
It is also worth noting that Fisker Ocean has achieved an EPA range of 360 miles, the longest of any new electric SUV under $200,000 sold in the U.S. today, which may be a huge selling point for FSR since it exceeded the company’s own expectations.
FSR will also begin production on its new vehicle, the Fisker PEAR, and will showcase multiple drivable prototypes at its inaugural investor event on August 3, 2023. The success of those products will be determined by the success of the Fisker Ocean as customers start receiving their cars.
Chinese Market
After getting the U.S. release out of the way, FSR is currently looking to expand in China by the start of Q1 2024. FSR is planning on opening a delivery center in China in late 2023 and starting to deliver its Ocean SUV by Q1 2024.
While the Chinese market is a huge market for EVs since it represents almost 60% of global EV sales, it is still a very difficult market to enter. This is mainly due to the fierce competition in the Chinese market with giants like Tesla (NASDAQ: TSLA), BYD (OTC: BYDDF), and other Chinese startups competing for a piece of the pie.
If FSR can successfully penetrate the Chinese market, it can mean a lot for the company, especially since the Chinese EV market is growing rapidly, recording 55% growth in 2022 while the European market, the world’s second-largest EV market, Europe, increased by just 15%.
FSR Financials
In its Q1 2023 report, FSR’s assets have slightly decreased QoQ from $1.515 billion to $1.504 billion, and its cash and cash equivalents decreased 11.5% QoQ from $736 million to $652 million. FSR’s total liabilities increased by 6% QoQ from $1.034 billion to $1.096 billion.
Revenue also increased 1550% YoY from $12 thousand to $198 thousand. Operating costs decreased almost 1.7% from $123 million to $121 million, which contributed to the operating loss decrease of 1.7% YoY from $123 million to $121 million, which amounted to a net loss of $120 million – a 1.7% decrease YoY.
Technical Analysis
FSR stock’s trend is neutral with the stock trading in a sideways channel between $5.71 and $6.55. Looking at the indicators, the stock is trading below the 200, and 21 MAs which are bearish indications, and is currently testing the 50 MA as a resistance. Meanwhile, the RSI is neutral at 47 and the MACD is approaching a bullish crossover.
As for the fundamentals, FSR starting deliveries on June 19 will be a major catalyst for FSR stock. Given the stock’s extremely high short data, FSR could witness a short squeeze this week which could make the stock a bargain at current levels.
FSR Forecast
FSR has started the year with a rocky start, with production cuts and delays in its delivery in the U.S. But FSR seems to have put these problems behind its back and is focusing on starting deliveries in the US and Europe and reaching its production target for the year. Furthermore, the expansion to China can be extremely beneficial since its EV market is growing rapidly. FSR stock is currently an interesting EV stock to watch, especially with the possibility of a short squeeze.
FSR Fundamentals
Starting Deliveries
FSR is expecting to start volume deliveries in the U.S. and Europe on June 19, which may see FSR stock run due to a short squeeze since it is highly shorted with a short interest of 34.5% and 47.5% of its float on loan. At the same time, utilization rate remains high at 100%.
The high short interest FSR is seeing is due to the company sitting on only two cars delivered in Europe since the start of May due to not acquiring the necessary certificates to start delivering its vehicles in the U.S.
After sorting its delivery issues out, FSR plans to produce 1,400 to 1,700 vehicles by the end of June, ramping up production throughout the year to produce between 32,000 and 36,000 vehicles in 2023 to meet the 65,000 reservations that FSR had as of February 2023.
It is also worth noting that Fisker Ocean has achieved an EPA range of 360 miles, the longest of any new electric SUV under $200,000 sold in the U.S. today, which may be a huge selling point for FSR since it exceeded the company’s own expectations.
FSR will also begin production on its new vehicle, the Fisker PEAR, and will showcase multiple drivable prototypes at its inaugural investor event on August 3, 2023. The success of those products will be determined by the success of the Fisker Ocean as customers start receiving their cars.
Chinese Market
After getting the U.S. release out of the way, FSR is currently looking to expand in China by the start of Q1 2024. FSR is planning on opening a delivery center in China in late 2023 and starting to deliver its Ocean SUV by Q1 2024.
While the Chinese market is a huge market for EVs since it represents almost 60% of global EV sales, it is still a very difficult market to enter. This is mainly due to the fierce competition in the Chinese market with giants like Tesla (NASDAQ: TSLA), BYD (OTC: BYDDF), and other Chinese startups competing for a piece of the pie.
If FSR can successfully penetrate the Chinese market, it can mean a lot for the company, especially since the Chinese EV market is growing rapidly, recording 55% growth in 2022 while the European market, the world’s second-largest EV market, Europe, increased by just 15%.
FSR Financials
In its Q1 2023 report, FSR’s assets have slightly decreased QoQ from $1.515 billion to $1.504 billion, and its cash and cash equivalents decreased 11.5% QoQ from $736 million to $652 million. FSR’s total liabilities increased by 6% QoQ from $1.034 billion to $1.096 billion.
Revenue also increased 1550% YoY from $12 thousand to $198 thousand. Operating costs decreased almost 1.7% from $123 million to $121 million, which contributed to the operating loss decrease of 1.7% YoY from $123 million to $121 million, which amounted to a net loss of $120 million – a 1.7% decrease YoY.
Technical Analysis
FSR stock’s trend is neutral with the stock trading in a sideways channel between $5.71 and $6.55. Looking at the indicators, the stock is trading below the 200, and 21 MAs which are bearish indications, and is currently testing the 50 MA as a resistance. Meanwhile, the RSI is neutral at 47 and the MACD is approaching a bullish crossover.
As for the fundamentals, FSR starting deliveries on June 19 will be a major catalyst for FSR stock. Given the stock’s extremely high short data, FSR could witness a short squeeze this week which could make the stock a bargain at current levels.
FSR Forecast
FSR has started the year with a rocky start, with production cuts and delays in its delivery in the U.S. But FSR seems to have put these problems behind its back and is focusing on starting deliveries in the US and Europe and reaching its production target for the year. Furthermore, the expansion to China can be extremely beneficial since its EV market is growing rapidly. FSR stock is currently an interesting EV stock to watch, especially with the possibility of a short squeeze.
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