Shares of U.S. electric vehicle (EV) maker Fisker Inc. (NYSE: FSR) have been up and down over the past two years. Shares reached a high of $31.96 in March 2021 and fell to $7.95 in June 2022. So far, Fisker is a speculative pre-production electric vehicle (EV). However, the company is officially set to enter commercial production in November 2022. The company plans to launch four Ocean models, ranging from the affordable Ocean Sport starting at $34,999 to the luxurious Ocean One starting at $68,999. All 5,000 pre-launch limited orders for the Fisker Ocean One, secured with a $5,000 down payment in nine launch markets, are sold out by the company. Designed to be the most sustainable SUV on the planet, the Fisker Ocean is constructed from recycled and upcycled materials. It also has a solar roof called SolarSky that can generate more than 2,000 emission-free miles per year, powered by sunlight. Its battery can also be used as an emergency power source for the home for up to 7 days. It expects to complete final testing of 55 complete Fisker Ocean prototypes and go straight to production on November 17, 2022. Shareholders patiently and painfully waited for Fisker to go from prototype to production marking the second arrival of the proverbial Tesla killer.
Resurrected Tesla Killer
Henrik Fisker may sound familiar to sports car lovers, as he is the owner of the James Bond BMW Z8 Roadster, the best-selling Aston Martin V8, the Ford (NYSE: F) Shelby The infamous designer behind critically acclaimed models like the GR-1, the Artega GT and the Tesla (NASDAQ: TSLA) Model S. Ironically, the man known as the Tesla Killer was a Tesla designer who was the designer behind the team that designed the now-iconic Tesla Model S. Fisker crashed and burned in a flashy electric car called the Karma in his initial attempt, attracting many friends thanks to its celebrity client list including Leonardo DiCaprio, Justin Bieber, Colin Powell and former U.S. Vice President Al Gore. Unfortunately, the company missed the milestone, resulting in a $528.7 million conditional loan freeze from the U.S. Department of Energy. Then Hurricane Sandy destroyed its original Karma order, and flooding shut down production, eventually forcing the company into bankruptcy in 2012. In 2016, Fisker Inc. resurrected and eventually reverse-merged with SPACE, a company called Spartan Energy, winning a second chance in the $1 billion war to enter the electric vehicle market.
Focus on asset-light and design models
The Fisker brand is associated with brilliant, cutting-edge, futuristic, award-winning designs. This time, Mr. Fisker tried to leverage his reputation for design by handing over manufacturing to seasoned Magna International (NYSE: MGA). By outsourcing production, Fisker has an asset-light and agile operating model that can focus on cutting-edge design and an enhanced end-user experience. Unlike rivals Tesla, Lucid (NASDAQ: LCID), and Rivian (NASDAQ: RIVN), Fisker doesn’t have to build a factory to make cars. They simply outsource, like how Applied Materials (NYSE:AMD) outsources their semiconductor production to TSMC (NYSE:TSM), not like Intel (NASDAQ:NASDAQ: INTC) in its own factory.
D-Day is November 17, 2022
gentlemen. Fisker commented on its Q2 2022 conference call: “We look forward to embarking on a once-in-a-lifetime journey with our 5,000 Fisker Ocean One stakeholders as we approach production on November 17, 2022. These 5,000 With all vehicles pre-delivered, the order for Fisker Ocean One will generate potential revenue of approximately $350 million for Fisker.” He continued: “I am impressed by the seamless collaboration between Fisker and all of our partners and suppliers. Proud to make sure we start production on November 17, 2022,” Henrik continued. “After driving the test car on high-speed circuits in Italy and on the roads of Los Angeles, I am excited about all the features we will offer in the Fisker Ocean and the drivability of the Fisker Ocean.”
Impact of the Inflation Reduction Act
On August 17, 2022, President Biden signed the Reducing Inflation Act, which basically Allocate $370 billion for decarbonization efforts. It renews the $7,500 electric vehicle tax credit from January 2023 through the end of 2032. While that might sound good to EV makers, it won’t benefit everyone. The tax credit applies only to electric vehicles made in the U.S. and battery materials must come from the U.S. or a country with which the U.S. has a free trade agreement. Unfortunately, Fisker Ocean was outsourced to Magna International, which assembles the cars at its Austrian factory. The company has taken advantage of this to help facilitate presales, as the $7,500 credit would still apply if a US customer’s $5,000 deposit was converted to a binding sales agreement before the law took effect.
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Use the Rifle charts on the weekly and daily timeframes to get an accurate picture of FSR stock’s near-term outlook. The weekly Rifle chart finds support near the $8.10 Fibonacci (fib) level . The weekly 5-period moving average (MA) at $9.61 is almost the same as The 15-period moving average at $9.57 overlaps. The weekly 50-period MA resistance at $12.80 overlaps the weekly upper Bollinger Bands (BB) at $12.78. Weekly Market Structure Low (MSL)
Buy Trigger Above 9.54 Dollar. The daily rifle chart is down in a downtrend, with the 5-period MA resistance overlapping the daily 50-period MA resistance at $9.27, followed by the 15-period MA resistance at $9.69. The daily lower BB price is $8.44, while the daily higher BB price is $10.75. The daily 200-period moving average resistance is near $12.62. Attractive retracement levels are found at the Fibonacci levels of $8.70, $8.10, $7.49, $6.65, and $5.93. Upside targets range from $12.62 to $15.03.