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What happened
Share of arrivals of electric vehicles (EV) Fisker (NYSE: FSR) jumped 35.6% on Friday after the company reported its fourth quarter 2020 financial results. The stock ended the session with a gain of 32.5%.
So what
Fisker does not generate any income, but the company reported a loss of $ 12.0 million, or $ 0.05 per share, and cash on hand of $ 991.2 million. Management also said bookings for the upcoming Fisker Ocean stand at 12,467, with the daily booking rate increasing 400% since mid-October 2020.
Fisker Ocean. Image source: Fisker.
The company said it was on track to start production on the Ocean in the fourth quarter of 2022 in Europe, with production at Foxconn to follow a year later. It was enough to make progress in vehicle production to make investors in this EV stock happy today.
Now what
Since Fisker is still in pre-income, investors are looking for progress towards its goal of becoming a viable long-term automaker. The number of reservations is what I will be watching the most because it indicates that there will be demand for the company’s products. I wouldn’t take too much away from this earnings report as the earnings are still almost two years away, but for now we can see that Fisker is working hard to make his EV a reality.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are colorful! Challenging an investment thesis – even one of our own – helps all of us to think critically about investing and make decisions that help us become smarter, happier, and richer.
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