Fisker share price pulled back this week after the company published the latest earnings statement. FSR stock declined to a low of $8, which is slightly below this week’s high of $8.36. This means that the shares have collapsed by more than 51% this year, giving it a market cap of about $2.1 billion. Other EV stocks like Tesla, Xpeng, and Mullen Automotive have crashed by more than 30% this year.
Is Fisker a good buy?
Fisker Automotive is an upcoming EV company that hopes to become the biggest automaker in the world. It is one of the several companies that are looking to disrupt Elon Musk’s success with Tesla. Other upcoming EV companies in the industry are Nio, Rivian, Lucid, and Polestar among others. The company also aims to compete with traditional companies like General Motors and Ford.
Fisker is building Fisker Ocean, a SUV that starts at $37,500. Its Ocean Extreme starts at $69,000 and has a range of up to 350 miles. In a statement, Fisker said that it has received over 65k reservations in the United States and Europe. Most of these reservations are for the $37,500 product. At the same time, the company upgraded its order expectations for the year-end to 80,000, which is higher than the previous estimate of 50,000.
Fisker is not selling any cars now. Therefore, the company said that its operating expenses was over $140 million. Capex rise to $57.3 million while the company has $824 million in cash. Still, Fisker has a short interest of 35%.
So, is Fisker a good stock to buy today? Fisker faces numerous challenges going forward. For example, the company could fail to deliver the cars it has promised in time. We have seen this with companies like Tesla and Rivian. As a new EV company, there is a likelihood that its cars will have some challenges. Most importantly, its path for profitability remains long.
Fisker share price forecast
The four-hour chart shows that the FSR stock price has been in a strong bearish trend in the past few months. It has fallen by more than 66% from its highest level in October last year. The stock managed to move below the key support level at $8 in September this year. It has now break and retest pattern, which is usually a bearish sign.
Therefore, there is a likelihood that the stock will likely continue falling as sellers target the key support at $6.40, which was the lowest level this year. A break above the resistance at $8.5 will invalidate the bearish view.