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Orders for the Fisker Ocean electric sports 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 it reported Thursday evening are behind the news of upcoming car models.
The key focus is Wednesday’s blockbusters from the company that assembles the iPhones
apple
(ticker: AAPL) will build a car for Fisker.
First the financial results.
Fisker
(FSR) did not generate any sales and lost some nickel. Wall Street projected a loss of 6 cents per share, so by that measure, the numbers were okay.
What most interests investors is the new vehicle pipeline. The Fisker Ocean SUV is still on track to be delivered by the end of 2022. This is good news for investors who don’t want timelines to slip away. This vehicle is being manufactured by
Magna International
(MGA).
Reservations for the Ocean already exceed 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, the company that brings together electronic products such as iPhones. This sent the shares rising, but details are scarce. CEO Henrik Fisker on Wednesday posted just a rough sketch that wrote “It could be too futuristic for some!”
It will probably be Fisker’s second model, after the Ocean, and is expected to hit the streets in 2023. Prices and style are unknown. Fisker may not want to say much to investors yet, but investors and analysts were expected to try and ask for details about the company’s earnings conference on Thursday evening.
Fisker shares rose about 4% in after-hours trading after falling more than 4% on Thursday. This trading action should not surprise investors. Things have been volatile for all electronic vehicle stocks lately. Shares of Tesla (TSLA), for example, have fallen 14% during the month.
Thursday’s fall probably had nothing to do with Fisker specifically. It was a difficult day for high-growth stocks. He
S&P 500
fell 2.5%. He
Nasdaq Composite,
the home of many high-growth technology stocks, fell even further, falling 3.5%.
Fears of inflation appear to be the main culprit in the selloff.
Higher inflation leads to higher interest rates, which hurt shares with higher valuations more than other stocks. Fisker shares are worth more than $ 6 billion. It’s a big multiple of projected sales for 2022 of about $ 440 million.
The 10-year Treasury debt yield, a crude measure of inflation expectations, traded above 1.5% on Thursday. It started the year yielding less than 1%.
Write to Al Root at [email protected]