2024-03-11 16:51:36 ET
Summary
- Fisker's shares dropped significantly after warning about its ability to survive.
- The company reported disappointing fourth-quarter earnings, with higher losses and lower revenues than expected.
- Fisker's balance sheet is not well-capitalized, leading to the need for capital raising and a potential strategic partnership.
- Shares trade at a distressed valuation multiplier as bankruptcy risks are growing.
Shares of Fisker ( FSR ) lost about half of their value after the electric vehicle company submitted its fourth-quarter earnings sheet at the end of February, delayed its 10-K and management warned about its ability to survive. A strategic partnership with a large legacy automaker is now the most likely outcome for Fisker which is quickly running out of cash. Fisker has been a promising electric vehicle start-up in 2022 and 2023, but slowing demand for electric vehicles and an increasingly competitive industry environment are weighing on the company’s production potential. I do not recommend growth investors to establish a position anymore and down-grade my rating to hold considering that Fisker may attract a strategic investor!...
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For further details see:
Fisker Q4: EV Dreams Are Fizzling Out [Downgrade]