Fisker (FSR) stock is on many investors' radars as it gets closer to bringing its electric vehicles to the market. Some investors are betting that Fisker will be the next Tesla. What is Fisker's stock forecast and where could it be in 2025?
The electric vehicle market is crowded, but Fisker is trying hard to stand out. The company has developed an electric SUV called Ocean that's about to go into production. While Tesla and Lucid Motors battle for control of the luxury EV market, Fisker targets the budget EV market. Its Ocean model will cost under $38,000.
Fisker (FSR) stock news
Fisker stock rose more than 2.5 percent in morning trading on July 29 to hit $17. The spike followed the company’s announcement of an investment of $10 million in EV charging company Allego.
Allego is going public through a SPAC merger and Fisker made the investment in a PIPE arrangement. Fisker has also struck a strategic partnership with Allego to allow its drivers in Europe to charge for free at Allego locations for a limited period.
In other Fisker news, the company’s flagship Ocean SUV is expected to make its debut at the Los Angeles auto show in November 2021. The car will be able to drive 300 miles on a single charge and is fitted with a solar roof to boost the range. Investors want to know Fisker's stock forecast amid these deals.
Fisker Ocean production at Magna plant
Unlike Tesla and Lucid Motors, Fisker decided to outsource the manufacturing of its electric cars. It tapped Magna International to produce the Ocean SUV. Magna is a global auto parts supplier. It also does contract vehicle manufacturing for several brands including Mercedes-Benz, Jeep, BMW, and Toyota.
The Fisker Ocean production at the Magna factory is scheduled to start in November 2022. Magna’s track record and experience assembling vehicles instill confidence that Ocean's production schedule will be met.
Outsourcing production helps Fisker avoid the burdening work of setting up its own assembly plants. With the manufacturing task handled by others, Fisker can focus on developing innovative products that stand out on the market.
Magna bets on Fisker stock as well
Magna appears to believe in Fisker’s prospects so much that in addition to producing its first car, it has taken a significant stake in FSR stock. It owns a stake of about 7 percent in Fisker.
Is FSR stock a good buy before its Q2 earnings?
Fisker plans to report its second-quarter financial results on Aug. 5. There will be less focus on Fisker’s sales and profits when it releases the results because the company doesn’t have a car on the market yet. Instead, investors will be following management’s commentary for updates on production plans and partnerships that could benefit the company.
FSR stock could rise if investors like what they hear from management. Fisker is heading into the earnings with its stock price almost 50 percent below its all-time high. Bargain hunters might want to take advantage of that to buy the dip in case the stock pops on the earnings report.
Fisker (FSR) stock forecast for 2025
Since Fisker doesn’t have a car on the market yet and starting production of the first car is more than a year away, many investors are taking a wait-and-see approach with FSR stock.
Once Fisker starts to produce its Ocean model and the car is received well on the market, investors currently sitting on the fence will rush into the stock. That could lift the stock rapidly and deliver great returns for investors buying at the current price.
The highest FSR stock has reached since its debut is $32. Investors are still looking for the best EV stock to buy inspired by Tesla’s blockbuster returns. If the Ocean launch is successful, there's a high chance that FSR stock could be trading above $100 by 2025.