Fisker (NYSE:FSR) Gains after Major Business Update

Shares of electric vehicle maker Fisker (NYSE:FSR) surged nearly 8% in the early session today following the company’s business update that focused on operations and business plan execution. After early logistic challenges, the company is looking to optimize deliveries in the U.S. and Europe. As of November 30, it had either delivered or was in the process of delivering 123 vehicles to customers.

Further, Fisker has expanded its footprint to 14 retail facilities in the U.S. and 19 facilities in Europe (some facilities will be opened over the coming months). At the same time, the company is looking to keep costs low and has teamed up with Boxer Property to utilize its real estate portfolio for deliveries and logistics. Additionally, vehicle deliveries in Canada are anticipated to commence this month.

Fisker is exploring the sale of EPA Greenhouse Gas emission credits (EPA GHG credits) and is in talks with multiple automakers. It expects to generate 2.7 million GHG credits through model year 2025. It is also exploring strategic partnerships and is in talks with several automakers. Additional updates are anticipated over the coming months.

Importantly, the company plans to lower production in December to unlock $300 million in working capital. Consequently, it expects to produce just over 10,000 units for the year. The company has also made multiple new appointments at the senior level, including Dan Quirk as its new EVP of Finance and accounting. Earlier, Fisker had to postpone its third-quarter results following the departure of its Chief Accounting Officer.

What is the Price Prediction for FSR?

Overall, the Street has a Hold consensus rating on Fisker and the average FSR price target of $5.61 implies a massive 255% potential upside in the stock. That’s after a nearly 89% value erosion in Fisker shares over the past year.

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