We told our subscribers back in June that if they missed the move in Nikola or Tesla, that they should turn their attention to NIO Inc. At the time, NIO shares were trading at just $6. For those that listened to us at Insider Financial, they are now sitting on gains of over 600%.
If you missed the move in NIO stock, don’t worry because another opportunity exists with Fisker Stock. Fisker Inc is led by automotive pioneer Henrik Fisker and his goal is to become the next Tesla. In this article, we take a look at Fisker stock and why we believe it’s not only the next Tesla but also the next NIO for investors.
First up, here’s a little background info on Fisker stock. Fisker Inc merged with SPAC Spartan Energy (SPAQ), which was financed by billionaire Leon Black’s Apollo Global Management.
Based in Los Angeles, California, Fisker is revolutionizing the automotive industry by developing the most emotionally desirable and eco-friendly electric vehicles on Earth, supported by advanced mobility solutions.
The Fisker Ocean is a fully electric SUV with premium styling and features and has been designed to be the world’s most sustainable vehicle, including extensive use of environmentally friendly and recycled materials. The Fisker Ocean will be available to consumers through an innovative leasing package, optimized for driver convenience and accessibility.
The vehicle has won numerous awards since its debut at the Consumer Electronics Show earlier in 2020, highlighting strong market reception for this type of vehicle and for the Fisker ethos of appealing design and sustainability.
The merger resulted in Fisker stock with in excess of $1.0B of cash on its balance sheet net of transaction fees and expenses. The new company called Fisker Inc. also has no funded debt. The cash tally is expected to fund Fisker operations and the development of the Fisker Ocean program through the planned start of production in Q4 of 2022.
Henrik Fisker is an automotive genius. He is best known for designing luxury cars including the BMW Z8, Aston Martin DB9, Aston Martin V8 Vantage, Fisker Karma, Galpin-Fisker Mustang Rocket, VLF Force 1 V10, VLF Destino V8, Fisker EMotion, Fisker Ocean, and Fisker Orbit.
The Fisker Karma was the world’s first premium plug-in hybrid and received a handful of accolades, including the International Design Awards Product Design of the Year, Silver Edison Award, Automobile magazine’s Design of the Year Award, Top Gear Car of the Year, Fast Company’s Innovation By Design Award, and was named one of Time magazine’s 50 Best Inventions of 2011.
Fisker stock is a comeback story for Henrik Fisker. Fisker resigned as chairman from Fisker Automotive in March 2013, because of disagreements with management about business strategy. Later that year, the company declared voluntary bankruptcy. Assets of Fisker Automotive were sold at a bankruptcy auction in 2014 to Chinese automotive parts firm Wanxiang for $149.2 million.
In September 2015, Fisker Automotive was renamed Karma Automotive. The Fisker Karma was renamed the Karma Revero in 2016. Henrik Fisker and Fisker Inc are not affiliated with Karma Automotive or its parent company Waxiang. However, the pain of what Henrik went through the first time is driving him to succeed with Fisker stock.
Reasons To Be Bullish On Fisker Stock
First, Fisker stock has a current market cap of just $4 billion and trades at just $14 a share. NIO, on the other hand, has a current market cap of $61 billion and Tesla $406 billion. Adding insult to injury, Trevor Milton’s scam Nikola has a market cap of over $7 billion making Fisker stock is extremely cheap at current levels.
Second, Fisker’s reservation count has grown to 9,100+ paid reservations through October 2020, with 40,100+ registered users from around the world indicating interest.
Third, Fisker stock just unveiled three new electric vehicles for 2025. Fisker shared an image of its previously announced Ocean SUV in front of three other models: a “super-sports sedan” which is based on the E-Motion concept, another crossover model, and a truck. The pickup is still covered in the latest image, but the company already showed photos of the Alaska pickup back in February.
Fourth, Fisker is looking to take the Apple-Foxconn approach with outsourced manufactured. By going public via SPAC, Fisker stock will find it easier to ink a manufacturing partner.
Fifth, Fisker stock is partnering with Electrify America for access to its charging stations. Electrify America is investing $2 billion through 2027 to build out a nationwide electric charging network. This puts Fisker’s charging capabilities on par with Tesla.
Sixth, Fisker stock is partnering with Cox Automotive for local storage and maintenance services. Cox Automotive has 78 service locations in the U.S. and 108 global locations which will be authorized as full-service maintenance hubs for Fisker cars.
Seventh, now that the merger with Spartan Energy is complete, we are expecting Fisker stock to start moving and we are seeing that now. We saw what happened with Nikola after its merger with VectoIQ (VTIQ) was approved by shareholders. The stock went from $13 to $90 in less than two months.
Eight, Fisker stock is Henrik Fisker’s comeback vehicle and we can’t wait to see what he does to the short-sellers. If the shorts think Elon Musk made them wet their pants, they haven’t seen what Henrik Fisker is going to do to them.
Fisker Stock Bottom Line
The key to investing is finding the momentum BEFORE it happens. We know a lot of weak hands that just got shaken out on the drop below $10. Now that the weak longs got out and the shorts piled in, we are expecting Fisker stock to keep climbing, just like every other EV player – NIO, Tesla, Workhorse Group, Endurance Motors, and XPeng Inc. Buckle up and enjoy the ride.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in NYSE:FSR or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.
Image courtesy of Fisker