What happened
Electric vehicle upstart (EV) shares Fisker (NYSE: FSR) jumped up to 35.6% on Friday after the company announced its fourth quarter 2020 financial results. The stock ended the session with a 32.5% gain.
And
Fisker is not generating any revenue, but the company reported a loss of $ 12.0 million, or $ 0.05 per share, and available cash of $ 991.2 million. Management also said reservations for the next Fisker Ocean stood 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 producing Ocean in the fourth quarter of 2022 in Europe, with production at Foxconn taking place a year later. Simply making progress in vehicle production was enough for investors in this EV stock to be happy today.
What now
As Fisker is still generating revenue, investors are looking for progress towards their goal of becoming a viable long-term automaker. The number of reservations is what I will be most aware of because it indicates that there will be demand for the company’s products. I wouldn’t take much out of this earnings report because revenue is still almost two years away, but for now, we can see that Fisker is working to make his EV a reality.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even our own – helps all of us to think critically about investing and making decisions that help us become smarter, happier and richer.