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If you've been thinking of adding some Fisker stock to your portfolio now might be the time to do so. Shares have fallen 33% year-to-date.


Fisker (NYSE:FSR) stock has lost a third of its value since the beginning of the year, swept up by a broader sell-off of EV maker shares. But with the launch of its first vehicle fast approaching, is now the time to buy?

Ready to Launch
Shares of the Manhattan Beach, Calif.-based automaker have fallen 33% year-to-date. In comparison, shares of industry bellwether Tesla (NASDAQ:TSLA) have dropped 28% over that time. Meanwhile, other competitors have seen even larger drops. Lucid (NASDAQ:LCID) has declined 37%, Nio (NYSE:NIO) retreated 35%, and Rivian (NASDAQ:RIVN) fell 45%

At the same time, the S&P 500 index has slid 11% year-to-date. Fisker shares most recently changed hands at $10.50 in late morning trading Thursday.

The sell-off in FSR has occurred ahead of two major catalysts looming on the horizon.

The first is delivery of its first vehicle, the hotly anticipated Fisker Ocean. The SUV, which will have a starting price of $37,499, is the brainchild of renowned car designer Henrik Fisker, who also serves as Fisker’s chairman and chief executive officer. Deliveries are expected to begin in November 2022.

The second is the rollout of its second model, a more budget-priced EV called PEAR. Deliveries of PEAR are expected to begin at the end of 2024, with production starting at 250K per year. The vehicle is expected to have a sticker price of just under $30,000, significantly lower than most other EVs on the market.

It should be noted that Fisker is currently operating in the red, reporting a 2021 net loss of $471M on revenue of $106K. The company released its year-end earnings report on Feb. 16.

Is FSR a Buy?
Analysts at Cowen, who rate Fisker an Outperform with a price target of $28, said in a note last week that they expect PEAR production to reach 1M per year after 2025. They added that the company is taking reservations for PEAR sooner than expected and that Ocean has generated significant interest among commercial fleet buyers such as car rental companies.

Cowen analysts also indicated they were impressed by Fisker’s recently announced warranty program, which guarantees the powertrain for six years and 60K miles and battery for 10 years and 100k miles. “We view this as an ambitious warranty plan that highlights management's confidence in the design and the durability of the product,” wrote the analysts in their note.

Analysts at Credit Suisse were more bullish.

“In the wake of a sharp decline in growth-oriented stocks, we believe FSR has oversold and see an attractive entry point as our broader thesis on FSR remains intact,” wrote the Credit Suisse analysts in their note last week. “We believe that the start of production of Ocean in November is a key catalyst and could be enough to drive significant upside to the stock.”

The Credit Suisse analysts maintained their Outperform rating on the stock but lowered their price target to $25 from $32.

Raymond James analysts, meanwhile, rated FSR as a Market Perform, citing uncertainty over which Ocean model customers will prefer, given the wide price and gross margin range among the models. They noted that the base model Ocean Sport is expected to be priced at $37,499, with the mid-range Ocean Ultra at $49,999 and the Ocean Extreme at $68,999. The models also vary widely in drive range.

“Put simply, if everyone wants Sport, the Ocean will probably never be profitable. On the other hand, if everyone is willing to splurge on Extreme, the company will have one of the best margin profiles in the auto industry,” Raymond James analysts said in a note last week. “The reality, of course, will be somewhere in the middle.”

Analysts rate Fisker a Buy, on average. Of the 12 analysts tracked by SA over the past 90 days, four rated the stock a Strong Buy, three a Buy, four a Hold, and one a Sell. SA contributors also rated the stock a Buy, on average.

Meanwhile, Fisker’s SA Quant Rating is a Sell. While the company earned an A for growth, it received a D+ for momentum and D- for valuation and profitability.

For a more bullish view on Fisker, check out SA contributor Vince Martin’s “Fisker Stock Forecast: What to Watch in 2022.” For a more bearish take, read The Insiders Forum’s “A First Take on Fisker.”
 

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IMHO, FSR is a strong buy!

Analysts rate Fisker a Buy.
12 analysts over the past 90 days,
Strong Buy: 4 analysts
Buy: 3 analysts
Hold: 4 analysts
Sell: 1 analyst
 
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I've bought twice in the past week and that's with the intention to hold. It seems medium high risk but I'm okay taking this on in my portfolio right now. I don't hold many stocks (<10) and trade very infrequently. Am definitely not an expert whatsoever. Reservation holder for Ocean (likely Ultra).

The market seems irrational based on what I see as:
  • risk reducing (ex: many prototypes visible on a line walk today)
  • specific details that hit on good timing (ex: hidden gem product and company people don't know about yet)
  • many promising details that could even fall short of current expectations but still be a success
  • the market is massive and too big for just a few companies to win it all
  • gambling on global supply constraints working in Fisker's favor re' their size, biz model, and deals
  • enthusiastic humility and experience of the company and it's founders (i.e. not boastful arrogance that tells over-promise)
The market is expectedly fearful given global instability, large funds take a while to move in and out of positions and they probably responsibly have to be moving out right now. I tend to buy then but it's risky, and good luck fishing for the bottoms I don't do that.

Expecting a rough road over the next 2 years, especially as deliveries start and the short sellers pile onto edge cases and specific short term issues to inspire panic. I think I'll see in advance if it goes real bad and can get out before losing the investment. For any stock I'm understanding I can lose everything. Have been lucky so far.
 

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@Roland
Play the long game and don't watch it much.
Just wait until the general consumer, both US & European, discover the Fisker Ocean

At this point there's not much downside
 

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I bought 304 shares in December the very same day we made our reservation for the Ocean Ultra. It's dropped 5.00 since but the market is volatile and we can wait it out, plus "I Want To Believe".....
 

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I bought in a $11/share exactly but if I can buy more and bring my average down, I'm going to do it.
I feel ya my average was good but then I decided to buy in at 13 and man that killed my average about a year ago so been slowly waiting for the price to drop to 10 or lower to buy a little more to help my average cost go down. Right now my average is at 11.89 so not too bad. But man wish I had more money to put on FSR but do not get paid until next week. I only put $50 bucks while prices was 9.68 today lol.
 

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Yeah if it drops back down into $9 range next week I will add another 10 shares. I can't afford to do big share purchases all at once I have to do them over time. But I am not really interested in the earnings call until 4Q22 thru 2Q23 that is when we will see positive capital gains in the company as the deliveries hit consumers.
 

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MAn if only I got paid today. lol. Stock FSR: $9.36 right now. So if you would like to buy some fisker stock now is a good time. Remember I am not a financial consultant. I own some FSR stock and would buy more now if I had the money I do not get paid until Wednesday lol. I am hoping these prices will stay low until then so I can lower my average cost down. I am at 11.89 I think right now so if i were to buy at this price would bring cost down to like 11.50 lol.
 

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The stock is hovering around $10. I honestly got faith in this company in the long run so I'm constantly buying it.
I doing the same saw I had a little extra money so went ahead bought another $50 worth of FSR @ $9.39 which brought average down to 11.50 I think

Edit: I think I am just trying to get my average cost to the $10 dollar range or lower lol.
 

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I doing the same saw I had a little extra money so went ahead bought another $50 worth of FSR @ $9.39 which brought average down to 11.50 I think

Edit: I think I am just trying to get my average cost to the $10 dollar range or lower lol.
I just bought some today and my average is $10 now.
 

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I just bought some today and my average is $10 now.
Nicely done. Ticker was below $9 so bought another $50 brought my average to 11.16. (share price was 8.94 when I bought lol)

So I am getting closer to $10 range. I think will take about $150 more dollars next time it drops again.

Im a small investor only about 42 shares right now. But it is slowly going up if the prices stay low.
 

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Well, it hit my limit buy price of $9 so I'm in... for better or worse. I believe there may be some more short/medium term pain but I believe we will do well in the long run when the markets recover and Fisker delivers.
 
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