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Possible 1000% gain from an EV stock?
Fisker announced lower-than-expected financial results for the third quarter yesterday, and the reporting was delayed after the Chief Accounting Officer left the company. According to preliminary figures, Fisker reported increased revenues and losses in the electric vehicle business during Q3'23.
The electric vehicle company revised its production estimates, expecting to produce between 13,000 and 17,000 electric vehicles this year. Initially, Fisker had planned to produce between 20,000 and 23,000 vehicles, which means they have reduced their estimate by 30 percent. Despite the downward revision in guidance for 2023, I think Fisker is still a long-term investment opportunity for investors.
There are two main reasons why my argument is supported by hard facts. First, the company is experiencing a significant increase in deliveries, which translates into higher revenue gains. Second, the company does not need a drastic capital increase in the short term, as it recently successfully obtained funds through a convertible senior bond offering.
With the recent start of large-scale deliveries, the company is growing rapidly. In the third quarter of 2023, Fisker reported revenues of $71.8 million compared to only $825,000 in the previous quarter. However, this increase in production and revenue also led to a significant increase in the cost of goods sold, with a negative gross margin of $12.1 million. In addition, the company's operating loss increased from $88.2 million in the second quarter of 2023 to $99.6 million in the third quarter of the same year. Fisker is expected to continue to generate losses during the next two years as the company is still in the start-up phase. This is common for many emerging companies, as also seen with Tesla in the past.
According to Fisker's disclosure in the third quarter of 2023, the electric vehicle start-up delivered 1,097 vehicles to its customers. In the previous quarter, the company had just started making deliveries and had delivered only 11 electric vehicles. However, at the end of the quarter, Fisker managed to deliver as many as 1,200 Ocean to customers, which is three times the volume of deliveries than in the third quarter of 2023.
I am always very careful when I choose to invest in a company, and this time is no different. Since Friday I have been buying shares in Fisker, a company I have been following for two years. I know that this is a high-risk investment, but I have confidence in founder Henrik Fisker, who has been involved in a past failure. However, I am convinced that this time the outcome will be different and the company will succeed.
The MODULE 10-Q was released on November 22, revealing the strategic changes made by the CEO to the structure.
With extensive industry experience, Eric Sand has become the new Controller of our company. In addition, Dan Quirk joined our team as Vice President of Finance and Accounting, bringing with him extensive experience as Audit Partner at Ernst & Young.
In addition, they revamped the sales strategy by opening new facilities in strategic locations in the United States to improve delivery logistics from our production base in Austria. This move has already paid off, with a record 107 vehicles delivered in a single day.
Considering the growth potential I see in the stock and the fact that FISKER is one of the most shorted stocks in the world, with a short interest of almost 50 percent, I believe an increase to $20 in the next few years is possible. This could result in a 1000% return on my trade.
Possible 1000% gain from an EV stock?
Fisker announced lower-than-expected financial results for the third quarter yesterday, and the reporting was delayed after the Chief Accounting Officer left the company. According to preliminary figures, Fisker reported increased revenues and losses in the electric vehicle business during Q3'23.
The electric vehicle company revised its production estimates, expecting to produce between 13,000 and 17,000 electric vehicles this year. Initially, Fisker had planned to produce between 20,000 and 23,000 vehicles, which means they have reduced their estimate by 30 percent. Despite the downward revision in guidance for 2023, I think Fisker is still a long-term investment opportunity for investors.
There are two main reasons why my argument is supported by hard facts. First, the company is experiencing a significant increase in deliveries, which translates into higher revenue gains. Second, the company does not need a drastic capital increase in the short term, as it recently successfully obtained funds through a convertible senior bond offering.
With the recent start of large-scale deliveries, the company is growing rapidly. In the third quarter of 2023, Fisker reported revenues of $71.8 million compared to only $825,000 in the previous quarter. However, this increase in production and revenue also led to a significant increase in the cost of goods sold, with a negative gross margin of $12.1 million. In addition, the company's operating loss increased from $88.2 million in the second quarter of 2023 to $99.6 million in the third quarter of the same year. Fisker is expected to continue to generate losses during the next two years as the company is still in the start-up phase. This is common for many emerging companies, as also seen with Tesla in the past.
According to Fisker's disclosure in the third quarter of 2023, the electric vehicle start-up delivered 1,097 vehicles to its customers. In the previous quarter, the company had just started making deliveries and had delivered only 11 electric vehicles. However, at the end of the quarter, Fisker managed to deliver as many as 1,200 Ocean to customers, which is three times the volume of deliveries than in the third quarter of 2023.
I am always very careful when I choose to invest in a company, and this time is no different. Since Friday I have been buying shares in Fisker, a company I have been following for two years. I know that this is a high-risk investment, but I have confidence in founder Henrik Fisker, who has been involved in a past failure. However, I am convinced that this time the outcome will be different and the company will succeed.
The MODULE 10-Q was released on November 22, revealing the strategic changes made by the CEO to the structure.
With extensive industry experience, Eric Sand has become the new Controller of our company. In addition, Dan Quirk joined our team as Vice President of Finance and Accounting, bringing with him extensive experience as Audit Partner at Ernst & Young.
In addition, they revamped the sales strategy by opening new facilities in strategic locations in the United States to improve delivery logistics from our production base in Austria. This move has already paid off, with a record 107 vehicles delivered in a single day.
Considering the growth potential I see in the stock and the fact that FISKER is one of the most shorted stocks in the world, with a short interest of almost 50 percent, I believe an increase to $20 in the next few years is possible. This could result in a 1000% return on my trade.