Amid a broader market rally, Fisker stock trades lower as Wolf Research analyst questions Fisker’s competitiveness, and Henrik Fisker strikes back, asking the firm to suspend its sloppy research.
Today, you may be wondering why Fisker stock traded lower by 7.77% to $5.70/share, down $0.48 at the market close, all while the broader markets closed the day higher. The S&P 500 increased by 0.62%, the Dow rose by 0.50%, and the Nasdaq gained 1.02%. At one point, Fisker shares hit a low of over 10%, all thanks to an analyst report from Wolfe Research questioning Fisker’s competitiveness. This report brought out Henrik Fisker, Chairman & CEO of Fisker Inc, in full force as he fought back against the analyst.
Wolfe Research Questions Fisker’s Competitiveness
Wolfe Research analyst Shreyas Patil, VP of Equity Research, believes Fisker is attempting to build a brand within one of the most saturated industry segments. He goes on to say that the competitive landscape for Fisker is becoming more intense as Tesla and several Chinese car makers take advantage of their cost advantages. Patil views Fisker as the most speculative carmaker within its coverage, including F, GM, Tesla, Rivian, and NIO. Wolfe downgraded Fisker shares from Peer Perform to Underperform, which is equivalent to a Hold to Sell rating. Patil’s price target for Fisker stock is $6/share. The firm also issued sell ratings on QuantumScape and Solid Power.
Henrik Fisker Counters Wolfe Research’s Claims
Henrik didn’t let these comments by Patil at Wolfe Research keep him from voicing his opinion on social media. Fisker fired back at Wolfe Research with some pretty direct words. He stated, “Wolfe, please suspend research on $FSR – Since you cannot take the time to do proper objective research. Clearly a hit piece the day before you want to downgrade. You mix up Ocean trims, incorrectly state Ultra trim pricing in an unfavorable way, don’t give credit for industry leading range. You refer to the product being undifferentiated, but claim your focus was solely on powertrain, but don’t acknowledge different vehicle form factors influencing efficiency, and completely ignore EPA range. You use our max battery capacity instead of usable capacity, and compare that to other cars usable energy! Our usable energy is way less than 113 KWh! How can any investor rely on your sloppy research.”
Morgan Stanley Analyst Adds to Pessimism on Fisker
Then Morgan Stanley analyst Adam Jonas, loved by all Fisker shareholders (sarcasm), piled on the pessimism by saying momentum in the US EV market has “downshifted several gears from the time the Ocean was conceived and developed.” Jonas went on to share that he assumes Fisker will need to raise additional capital through $600M of incremental debt and equity to further bolster liquidity in a choppy stock market. Morgan Stanley holds Fisker shares with an Underweight rating and a $4 price target.
Prioritizing Customer Deliveries
Later in the day, Henrik came back on social media to respond to followers that showed their support after he blasted Wolfe Research. He thinks the most important thing right now is customer deliveries of the Fisker Ocean. Henrik Fisker went on to say, “Right now I think we need to prioritize deliveries rather than using vehicles for marketing! However we will have a lot of journalist testing the Ocean starting second half of July! I will personally be part of the deliveries here in Europe and in US starting June 23rd.”
Fisker is set to begin mass deliveries of the Fisker Ocean later this month. The company will begin delivering the Fisker Ocean One trim to customers in Europe, a week before the US, on June 16th. This is a significant milestone for Fisker. We couldn’t agree more with Henrik that deliveries should be Fisker’s top priority at the moment. Perhaps, once Fisker achieves volume deliveries, receives positive customer feedback, and proves it can ramp up production, the analyst community will understand why customers and shareholders like us have such strong belief in Fisker.
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