Text size
Orders for the Fisker Ocean electric sport utility vehicle are increasing./(SUV) is on display at CES 2020 in Las Vegas, Nevada
Bridget Bennett / Bloomberg
Electric vehicle maker Fisker has no sales, so the financial results released Thursday night are lagging behind with news about upcoming car models.
The main focus is the blockbuster news on Wednesday that the company that builds iPhones for
Apple
(ticker: AAPL) will build a car for Fisker.
Financial results first.
Fisker
(FSR) did not generate sales and lost a nickel per share. Wall Street was projecting a loss of 6 cents per share, so by that measure, the numbers were good.
What investors are much more interested in is the pipeline of new vehicles. The Fisker Ocean SUV is still about to be delivered at the end of 2022. This is good news for investors, who don’t want deadlines to be shortened. This vehicle is being manufactured by
Magna International
(MGA).
Ocean reserves now reach 12,000. This is progress: the number revealed in a December update was about 10,000 reservations.
On Wednesday, the company announced a partnership with Foxconn, a company that assembles electronics like iPhones. This caused stocks to skyrocket, but details are scarce. CEO Henrik Fisker just tweeted a sketch on Wednesday, writing “It can be very futuristic for some!”
It will probably be Fisker’s second model, after Ocean, and should hit the streets in 2023. Price and style are not known. Fisker may not want to say too much to investors yet, but investors and analysts should try, asking for details about the company’s earnings conference call on Thursday night.
Fisker’s shares rose about 4% in the after-hours market, after falling more than 4% on Thursday. This trading action should not surprise investors. Things have been volatile for all of EV’s actions lately. Tesla shares (TSLA), for example, fell 14% in the month.
Thursday’s crash probably had nothing to do with Fisker specifically. It was a difficult day for high growth stocks. THE
S&P 500
fell 2.5%. THE
Nasdaq Composite,
home to many high-growth technology stocks, fell further, falling 3.5%.
Inflation fears appear to be the main culprit for the sale.
Higher inflation leads to higher interest rates, which hurts highly rated stocks more than other stocks. Fisker’s shares are worth more than $ 6 billion. This is a large multiple of projected sales for 2022 of about $ 440 million.
The yield on 10-year Treasury debt, a crude measure of inflation expectations, was traded above 1.5% on Thursday. The year started off earning less than 1%.
Write to Al Root at [email protected]