Fisker stock surges 25% on upbeat outlook

Fisker (FSR.US) rose sharply on Monday after the EV maker confirmed that the deliveries of SUV Ocean models will be launched in spring. Company also upholds previous production guidance as it expects to manufacture 42,400 vehicles in 2023. Upbeat outlook overshadowed weak financial results, which came in line with its competitors - Lucid (Lcid.us) and Nikola (nkla.us) which also turned out to be a disappointment. 

• Revenue: $306k  vs expected$ 2.5 million

• EPS: $0.54 loss ($170.1 million) vs expected $0.42 loss

• The company in 2022 spent less than expected ($702 million compared to market estimates of $715 -$790 million) and said that the number of reservations for the Ocean models reached 65,000 units, above earlier projections of 62,000;

• Fisker pointed out that so far 56 cars have been built by the Magna International production partner in Austria, and 15 of them were completed before the end of the year and are currently being tested as part of improving the production process;

• The company is still testing additional functions and is waiting for approvals from the USA, Canada and Europe- the company estimates that next month the regulators will issue a decision, and production will start in Q2 of 2023;

• Company made significant progress regarding its second cheaper model called 'Pear', which production is expected to begin in 2024. The number of reservations has also increased compared to November by over 10%.

• Fisker Ocean is expected to have the longest range among all SUVs priced below $70,000. Current prices for the basic version oscillate from $37,499 to $50,000. Lower prices compared to the competition may attract additional customers especially taking into account ongoing inflationary pressures;

Fisker (FSR.US) stock price has been moving south since 2021. The key short -term resistance is located around $8.35 and is marked by the previous price reactions. Break above this level would be a first sign that buyers are regaining control. Source: xstation5