EV Maker Fisker Shares Open Higher After Positive Ocean Reservation Update, Citi ‘Encouraged’
2022.04.01 18:17
EV Maker Fisker (FSR) Shares Open Higher After Positive Ocean Reservation Update, Citi ‘Encouraged’
Shares of Fisker (NYSE:FSR) are up 1.5% today after the electric vehicle (EV) company said that reservations for its Ocean SUV have now exceeded 40,000.
The company plans to open pre-orders for the limited edition Ocean One SUV on July 1 with 5,000 units of this model expected to be made starting from November. For the Ocean Sport model, the production wont start until late 2023, Fisker said.
At the moment, Fisker doesn’t plan to raise prices for the Ocean in 2022 or 2023 but it cant guarantee that will be the case going forward given inflation.
Citi analyst Itay Michaeli reiterated a Buy rating following an encouraging update.
“After catching up with management (CFO/IR), we noted the following: (a) Ocean demand strength appears broad-based; (b) Planned 2023 production range intact; (c) Company is less focused on optimizing vehicle gross margin during the 2023 ramp, and is increasingly focused on incremental opportunities within installed-base economics. Net-net, we view this news favorably as Fisker continues to gain commercial momentum,” Michaeli said in a client note.
By Senad Karaahmetovic
