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Orders for the Fisker Ocean sport utility vehicle are on the rise. / (SUV) is on display at CES 2020 in Las Vegas, Nevada
Bridget Bennett / Bloomberg
Electric vehicle maker Fisker has no sales, so the financial results it reported on Thursday night take the back spot on news about future car models.
The key focus is Wednesday’s blockbuster news that the company that assembles iPhones
Apple
(ticker: AAPL) will build a car for Fisker.
First the financial results.
Fisker
(FSR) did not generate any sales and lost some of its nickel. Wall Street projected a loss of 6 cents per share, so by that measure, the numbers were okay.
What investors are more interested in is the pipeline of new vehicles. The Fisker Ocean SUV is still on track for late delivery in 2022. This is good news for investors who don’t want deadlines to drop. The vehicle is manufactured by
Magna International
(MGA).
Ocean reservations are now in the top 12,000. This is progress: the number revealed in a December update was about 10,000 bookings.
On Wednesday, the company announced a partnership with Foxconn, the company that assembles electronic products such as iPhones. The shares sent increase, but the details are thin. CEO Henrik Fisker posted on Twitter only a rough sketch writing “It could be too futuristic for some!”
It will probably be Fisker’s second model, after Ocean, and will hit the streets in 2023. Prices and style are unknown. Fisker may not want to tell investors much more, but investors and analysts were expected to try, asking for details about the company’s conference call on Thursday night.
Fisker shares rose about 4% in trading after the program, after falling more than 4% on Thursday. The trading action should not surprise investors. Things have been volatile for all EV stocks lately. Tesla shares (TSLA), for example, fell 14% for the month.
Thursday’s drop probably had nothing to do with Fisker specifically. It was a difficult day for high-growth stocks.
S&P 500
decreased by 2.5%.
Nasdaq Composite,
home to many high-growth technology stocks, fell even further, down 3.5%.
Inflation fears appear to be the main culprit in the sale.
Higher inflation leads to higher interest rates, which affect shares with high valuations more than other stocks. Fisker shares are worth more than $ 6 billion. This is a large multiple for projected sales for 2022 of about $ 440 million.
The 10-year Treasury debt yield, a gross measure of inflation expectations, traded above 1.5% on Thursday. He started the year producing less than 1%.
Write to Al Root at [email protected]