Fisker $FSR stock is approaching critical resistance as of April 26, 2023, after the stock rallied 22% on news it has received regulatory approval to sell cars in Europe.
A break above $6.71 would mark the end of the strong downtrend channelUptrend and downtrend channel patterns are technical analysis tools used to identify potential future price movements. They are formed by two parallel lines on a chart and can be u... that the stock has traded in since March 2023.
Fisker Inc. is an American electric vehicle company that designs and manufactures electric cars. Its primary focus is on sustainability and developing environmentally friendly vehicles. Fisker Inc. is known for its Karma model, which is a high-end hybrid sports car, and its all-electric SUV, the Fisker Ocean.
Fisker Gets European Regulatory Approval
After the company announced that European regulators have approved the Ocean SUV for sale, Fisker stock is recovering from a recent all-time low. Fisker will start shipping its limited-edition Ocean One to Europe on May 5. At its Austrian facility, Magna International, a partner of Fisker and a supplier to the automotive industry, is producing the vehicle.
Losses at Fisker are smaller than at other EV start-ups because it doesn’t own a manufacturing plant. Wall Street projects an operating loss of about $200 million in 2023. Both Rivian and Lucid own their own plants and both are expected to have losses in the billions in 2023.
Fisker has stated that it will only produce 5,000 units of the Ocean One model, and it now anticipates delivering every single one of those to customers who have made reservations by the end of September. Although the Ocean Ultra and Sport models, which have price tags of $49,999 and $37,499, respectively, and several units of the One, which is listed for $68,999, have also been manufactured by the company. The less expensive trim models should start to arrive in September, according to Fisker.
“The entire Fisker team is excited to get the Fisker Ocean One launch edition to our reservation holders,” said CEO Henrik Fisker in a news release. After initial deliveries “we intend to deliver all Ocean Ones by the end of September, while also initiating some deliveries of the Fisker Ocean Extreme, starting in Europe with the U.S. to follow.”
U.S. salesThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... will come after initial deliveries in Europe. Due to the slightly different standards in Europe and the US, Fisker is taking the simultaneous certification route from both of these regulatory bodies.
The company expects that approach to allow it to base initial sales around regional demand. Fisker chairman and CEO Henrik Fisker stated, “Our unique business model enables this level of flexibility, which we are now capitalizing on.” Its contract manufacturing agreement also allows it to minimize high capital costs that other EV start-ups need to overcome.
In the past, Fisker has stated its intention to build more than 42,000 SUVs called Oceans in 2023. Investors will receive their following update on May 9 during the company’s first-quarter earnings call.
