Fisker stock price forecast: Moderately bullish despite headwinds

August 18, 2023 05:13 AM PDT | By Invezz

Fisker stock price forecast: Moderately bullish despite headwinds — Image source: Invezz

Fisker faces headwinds

Fisker has made several important headlines in the past few weeks. The most recent headline is that the company unveiled Fisker Alaska, a new SUV with a 340-mile range. It will start at $45,000 and will compete with the likes of Ford F-150 Lightning and Rivian R1T. Speaking about the vehicle, Henrik Fisker said:

“Looking at our pickup truck, the Alaska, that vehicle which with incentives is $37,900. There is no electric pickup truck in that segment. And I don’t believe there’s any electric pickup truck as cool, as sporty as the Alaska is.”

The other important news was that Fisker published its financial results a few weeks ago. In its statement, the firm said that it produced 1,022 vehicles in Q2, a remarkable feat since the company has just started manufacturing.

Fisker’s challenges during the quarter were from the regular shutdown at Magna Steyr, which happened in August. For starters, Fisker is different from other EV companies in that it is primarily a design firm. It does not handle any manufacturing. Instead, like Apple, it outsources the work to Magna.

Fisker’s revenue for the quarter was $825k as it started shipping its Ocean brand. As a result, its net loss jumped to $85.5 million while capex soared to $91.3 million. Fisker hopes to produce between 20k and 23k vehicles this year as it prepares to ramp up production.

Despite this progress, Fisker faces major headwinds. For one, there are signs that demand for vehicles is falling as evidenced by Tesla price cuts. Also, while inflation is falling, most people have seen their savings deplete. And most importantly, auto loan interest rates and delinquencies have jumped.

Fisker stock price forecast

The daily chart shows that the Fisker share price has been in a downward trend in the past few months. Along the way, the stock has formed a bearish channel shown in black. It is now moved between this channel and slipped below the 25-day and 50-day moving averages.

On the positive side, Fisker shares have formed an inverted head and shoulders pattern and a falling wedge. Therefore, there is a likelihood that the stock will have a bullish breakout in the coming weeks. If this happens, the shares will likely retest last month’s high of $7.20.

The post Fisker stock price forecast: Moderately bullish despite headwinds appeared first on Invezz.

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