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Fisker (NYSE:FSR) extended its post-earnings rally with a 3.92% gain in mid-day trading on Tuesday.
The two-day 35% pop in share price has Morgan Stanley cautious with Fisker’s reiterated guidance for production of up to 42.4K units for FY23 a substantial multiple to the firm’s own 15,800 unit delivery forecast for the year.
Analyst Adam Jonas and team do not expect Fisker (FSR) to reach a production rate of more than 40k units until late 2024 or early 2025.
“Given the vehicle is not yet certified for delivery to customers, we believe deliveries would have to be substantially loaded into the back end of the year, implying a production rate of well over 1,000 units per week from 2Q onward.”
The firm is still fans of the Ocean’s design, but risks seen for the EV upstart are the increasingly competitive EV environment, slowing auto consumer and tail risk of technological obsolescence in EV manufacturing, battery design. Supporting infrastructure is expected to permanently change the landscape over the next few years and layer on more risk for Fisker (FSR).
Seeking Alpha Bill Maurer is holding back on recommending Fisker (FSR) following the earnings rally due to the potential for some bumps in the road as production ramps and more capital may be needed.
Read more about Fisker’s (FSR) Q4 earnings report.
Source: seekingalpha.com
