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Orders for Fisker Ocean electric SUV are rising ./(SUV) is on display at CES 2020 in Las Vegas, Nevada
Bridget Bennett / Bloomberg
Electric vehicle manufacturer Fisker has no sales, so the financial results he reported on Thursday evening are catching up with news of upcoming car models.
The main focus is the blockbuster news Wednesday that the company assembling iPhones for
Apple
(ticker: AAPL) is going to build a car for Fisker.
First the financial results.
Fisker
(FSR) generated no sales and lost a nickel per share. Wall Street was counting on a loss of 6 cents a share, so the numbers were fine by that measure.
What investors are much more interested in is the pipeline of new vehicles. The Fisker Ocean SUV is still on track for delivery in late 2022. That’s good news for investors who don’t want the timelines to slip. That vehicle is made by
Magna International
(MGA).
Reservations for the ocean are now higher than 12,000. That’s progress: The number revealed in a December update was about 10,000 reservations.
On Wednesday, the company announced a partnership with Foxconn, the company that assembles electronics such as iPhones. That drove the stocks up, but the details are thin. CEO Henrik Fisker tweeted just a rough outline on Wednesday, writing, “It might be too futuristic for some!”
It is likely to be Fisker’s second model, after the Ocean, and is expected to hit the streets in 2023. Prices and styling are unknown. Fisker may not want to tell investors much just yet, but investors and analysts were expected to try and ask for details about the company’s conference call on Thursday evening.
Fisker stock rose about 4% in after-hours trading after falling more than 4% on Thursday. That trade action shouldn’t surprise investors. Things have been volatile for all EV stocks lately. For example, the Tesla stock (TSLA) is down 14% this month.
Thursday’s drop probably had nothing specifically to do with Fisker. It has been a difficult day for high-growth stocks. The
S&P 500
2.5% down. The
Nasdaq Composite,
home to many high-growth technology stocks, fell even more, down 3.5%.
Fear of inflation appears to be the main culprit for the sell-off.
Higher inflation leads to higher interest rates, which hurt stocks with high valuations more than other stocks. Fisker’s stock is worth more than $ 6 billion. That’s a large multiple of the projected 2022 sales of about $ 440 million.
The yield on 10-year Treasury bonds, a crude measure of inflation expectations, traded above 1.5% on Thursday. It started the year with a yield of less than 1%.
Write to Al Root at [email protected]