Fisker’s stock is down over 50% year-to-date, but the best is yet to come for the company later this year.
It sucks to be a Fisker shareholder right now. It feels like you’ve been punched in the face. Doesn’t it? Even Henrik Fisker feels the pain. However, it also sucks to be a shareholder in general. You should know everyone is feeling the pain right now. No one likes to lose money from their investments.
Year-to-date, the Nasdaq Composite is down 28.22%, S&P 500 is down 17.96%, and the Dow Jones Industrial Average is down 12.99%. Stocks as a whole are being repriced, especially high-growth names that don’t have any earnings. The Federal Reserve is increasing interest rates to combat inflation. As a result, asset prices as a whole are falling. Currently, this has more of an impact than any geopolitical issues.
Unprofitable companies are the worst performers
Companies losing money each quarter are getting hammered the most. That’s probably why the Dow Jones Industrial Average is the best performer year-to-date. This is compared to the Nasdaq Composite, which had a lot of high flying growth names that still don’t turn a profit. Wall Street’s attitude toward companies without earnings are now out of favor. All Dow 30 companies are profitable and mostly paying healthy dividends. That is what investors want right now.
Fisker’s share price year-to-date
Currently, Fisker’s stock is trading at $8.29/share. The stock began the year at $16.71. It is down $8.42/share this year. That’s 50.39% year-to-date. Shocking! Not so much. Fisker has not done anything wrong. Companies like Fisker are out of favor right now. The entire EV industry is getting crushed.
Investors appear to be selling everything in this sector. It doesn’t matter which company you own. Even the almighty Tesla is down 38.82% year-to-date. Fisker is the second best performer among Lucid, Nio, Tesla, and Rivian. Fisker is only underperforming Tesla by 11.57%. Even legacy automakers such as Ford and GM are down nearly 40% year-to-date. Anything automotive is doing poorly.
Later this month, Henrik Fisker will be test driving the Fisker Ocean with race car driver Abbie Eaton. In July, Fisker will begin solidifying purchase orders with reservation holders for the Ocean One. In August, or thereabouts, the company will be opening up its Fisker Brand Experience Centers in Los Angeles and Munich. Late summer the company will refresh its website and mobile apps providing us a new Fisker Ocean configurator. And best of all, the Fisker Ocean is only 190 days from start of production in Europe.
As a long-term investor, all of these milestones will be fun to watch no matter what happens to Fisker’s share price or the stock market as a whole.