CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Scan to Download iOS&Android APP

Electric vehicles: Fisker soars, but can production meet demand?

By Kevin Donovan

21:04, 4 April 2022

Share this article

Subscribe to Weekly Highlights

The major market events for the week ahead right in your inbox. Subscribe
A Fisker electric SUV
Fisker reported 40,000 reservations for its electric SUV - Photo: Shutterstock

Fisker (FSR) stock traded over 13% higher Monday after the EV automaker announced it exceeded 40,000 reservations for its Ocean model SUV, currently set to begin production in November.

Fisker Ocean One SUVFisker Ocean One SUV - Photo: Fisker Inc.
Fisker Inc. (NYSE: FSR) 1-year PerformanceFisker Inc. (NYSE: FSR) 5 day Performance - Photo: TradingView

Los Angeles, California-based Fisker added pre-orders will open to reservation holders on 1 July to purchase the limited-edition Ocean One model.

Given the elevated level of interest in the Fisker Ocean One and Fisker Ocean Extreme, Fisker believes it will potentially sell out capacity through most of 2023,” Fisker said in a statement.

Fisker stock moved as high as $14.74 per share in mid-day trading, before closing the day at $14.49, versus Friday’s $13.03 closing share price. Trading was unusually heavy, with over 10 million trades, compared to the 377,038 daily average, according to data maintained by Nasdaq. Fisker stock trades on the NYSE.

Fisker’s news comes as rival EV maker Tesla announced a quarterly record 310,000 deliveries, topping downsized estimates. EV maker Rivian, meanwhile, cut its 2022 production estimates to 25,000, due to difficulty sourcing battery components and computer chips.

Fisker Inc. (NYSE: FSR) 1-year Performance

Fisker Inc. (NYSE: FSR) 1-year PerformanceFisker Inc. (NYSE: FSR) 1-year Performance - Photo: TradingView

Tesla 1Q 2022 vehicle deliveries

Tesla 1Q22 vehicle deliveriesTesla 1Q22 vehicle deliveries - Photo: Tesla Inc.

Tesla (TSLA) stock soared Monday as well, closing up 6% to close at $1,145 per share. Tesla stock trades on the Nasdaq exchange.

"It’s no secret that there are massive supply chain issues,” said tastyworks CEO and market watcher Scott Sheridan. “Covid has really upset logistics all over the world, and there’s little reason to believe that problem is going to resolve itself overnight as new variants continue emerging.”

“Right now the market is pricing in a move of up or down 50% by the end of the year" ~ Scott Sheridan

Supply-chain logistics

Should Fisker production reach 50,000 in 2023, it will explore logistics and supply-chain options to increase deliveries, Fisker said.

Oil - Crude

80.74 Price
+2.270% 1D Chg, %
Long position overnight fee -0.0095%
Short position overnight fee -0.0042%
Overnight fee time 22:00 (UTC)
Spread 0.03

BTC/USD

17,085.00 Price
+3.530% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 66.00

US100

11,912.20 Price
+3.590% 1D Chg, %
Long position overnight fee -0.0166%
Short position overnight fee 0.0059%
Overnight fee time 22:00 (UTC)
Spread 1.9

Natural Gas

6.98 Price
-4.050% 1D Chg, %
Long position overnight fee 0.0486%
Short position overnight fee -0.0751%
Overnight fee time 22:00 (UTC)
Spread 0.005

While Fisker doesn’t plan to raise prices from the current $68,999 (£52,603) MSRP through 2023, it cautioned, “given the current rate of inflation and global market pressures in logistics and commodity costs, Fisker cannot guarantee pricing will remain static for vehicle orders received after the 40,000-reservation number or vehicles produced from 2024 onwards.”

Fisker, however, does outsource its production, added R.F. Lafferty Senior Analyst Jamie Perez. "Fisker has partnered with Magna International, a large auto contract manufacturer, to produce the Fisker Ocean," Perez noted in an email to Capital.com. "A large automotive contract manufacturer such as Magna should be able to build the Ocean despite supply-chain constraints and the engineering and manufacturing difficulties of bringing a new vehicle to market."

R.F. Lafferty maintained its Buy rating on Fisker stock with a $21 per share price target.

Tesla (Nasdaq: TSLA) 5-day PerformanceTesla (Nasdaq: TSLA) 5-day Performance - Photo: TradingView

“While I don’t have visibility into the specifics of Fisker’s supply chain, I do have visibility into what the market thinks about their future,” tastyworks’ Sheridan added. “Right now the market is pricing in a move of up or down 50% by the end of the year and that’s on the heels of the stock already having fallen nearly 40% since November.”

Fisker stock has fallen 38.9% since reaching a $23.75 52-week high on 16 November. Year-to-date, Fisker stock is down 13.3% from the 3 January $16.71 closing share price.

In the event of reservation cancellations, Fisker will open up additional reservations for the Ocean Extreme model for a 2023 build slot, which will become the production focus after the limited-edition Ocean One is complete. Fisker plans to begin manufacturing its Ocean Sport in 2023.

Related reading

Rate this article

Share this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Latest Stocks news

Still looking for a broker you can trust?

Join the 475.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading