The eco-friendly electric vehicles manufacturer Fisker Inc. (FSR) is up 1.15% in mid of the trading session on Wednesday buoying at $14.08 at last check. Shares of the company rose by 32.04 percent to $14.34 on Monday followed by an Outperform rating initiated by investment firm Cowen. The rise brought the company’s market valuation to cross the $1 billion mark on the day.
Cowen analyst Jeffrey Osborne gave a ‘strong buy’ recommendation for FSR shares on Monday and set a $22 price target. The analyst believes that the strategy of Fisker to enter the market for electric cars without producing its own production is promising. At one time, it was the development of large-scale manufacturing facilities that hampered Tesla’s development.
Fisker is outsourcing the automotive assembly to Magna Steyr, an industrial firm with extensive experience in such collaboration with automakers. Jeffrey Osborne believes that the production transition would allow Fisker to sell the first model of electric cars without significant capital expenditures and produce “significant cash flow in 2024-2025.”
Via a deal with Spartan Energy Acquisition, the firm entered into the market. So far, only one model has been built by Fisker: the Ocean electric crossover with a range exceeding 400 km on a single charge. Deliveries of the first cars at a price of $40 thousand are scheduled for the end of 2022.
Investments in Fisker currently have an elevated degree of risk, as the company does not yet sell vehicles and does not have sufficient production potential. With its “vegan” eco-friendly philosophy and open body style with many sliding windows, Fisker expects its car to draw the interest of young consumers.
Fisker Inc. (FSR) gained 19.14% over the past week which touches a rise of 35.88% over the past 6 months while reaches to 36.51% gain from beginning of the year.