Fisker Stock: Dealers Remain Hopeful as Risks Pile Up for EV Startup

Fisker (OTCMKTS:FSRN) stock is still on a winning streak. However, the struggling electric vehicle (EV) producer is still trading well below $1 per share. Yesterday, the penny stock surged on news that it had successfully lined up several new dealer partners, rising 120%.

Today, this momentum has continued, suggesting that investors are optimistic about the company’s chances of maintaining this comeback. But even as Fisker stock continues to trend upward, it is important not to lose sight of the bigger problems facing the fallen company, specifically the threat of bankruptcy and the fact that it has lost its spot on the New York Stock Exchange.

How should investors evaluate this struggling stock that refuses to die despite its fall from grace? Let’s take a closer look at the factors influencing Fisker stock and causing its recent roller coaster ride.

What’s Happening With Fisker Stock?

As high as the tides rising against it may be, Fisker is still managing to tread water. Shares aren’t rising as quickly as they did yesterday, but they have been in the green since markets opened. As of this writing, Fisker stock is up 33% for the day, displaying strong resilience in the face of market volatility. This puts it up over 200% for the week, but it still trades at only 72 cents per share.

At those levels, FSRN has a long way to go before it even reaches the $1 mark.

Nevertheless, the company is clearly focused on making progress. It has added one new dealer partner in Miami and two in Europe. While this is an encouraging development, it remains to be seen how well Fisker’s EVs will sell. The company significantly reduced prices on multiple popular models this year, including the 2023 Ocean Extreme. InvestorPlace contributor Chris MacDonald offered context on the Fisker price cuts, speculating:

“One of Fisker’s last-ditch efforts to save its brand appears to be cutting prices across its models to create demand for its Ocean SUVs. We’ll have to see if there are any announcements that come from this move. But it’s hard to anticipate EV buyers considering the brand, knowing that it will likely go defunct and make everything from servicing to ordering parts next to impossible.”

This is an important point, as it highlights the factor of compromised trust that may negatively impact Fisker’s sales. Even if the company is offering EVs at temptingly low prices, there’s no denying that it has revealed itself to be an unstable company this year. Meanwhile, competition from other automakers is constantly rising. Buyers may be tempted to buy from legacy automakers rather than startup catering on the verge of bankruptcy.

The Bumpy Road Ahead for FSRN Stock

For investors, Fisker stock remains highly speculative and wrought with risk. Even if the company is taking steps toward getting more EVs on the road, it is still trying to dig itself out of a deep hole of its own making. Even when shares surge by more than 100% in one day, it’s hard to have much confidence when they remain so far below the $1 mark.

Risk-savvy traders may try to paint this as a “buy the dip” opportunity, but everyone else will likely steer clear of FSRN stock, wary that things will suddenly go from bad to worse. Dealers may be optimistic about working with Fisker but that doesn’t mean investors will be.

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