Jim Cramer Doesn’t Care About Fisker’s Investment Thesis

Fisker was briefly mentioned on Mad Money last night during the Lightning Round and Jim Cramer will not recommend the stock.

Fisker ($FSR) was mentioned at the top of the Lightning Round last night on Jim Cramer’s Mad Money. Cramer said on the Lightning Round that Fisker “is going to lose money hand over fist.” He can’t recommend those stocks on Mad Money. A lot of people bash Jim Cramer. They are all over social media from Twitter to Stocktwits. We’re not one of those people. However, you can disagree with him all you want. As they say, that is what makes markets.

Right now, in a world where it feels like the stock market is falling a part, the host of the show is only recommending stocks that make money. Cramer is not recommending growth stocks, especially if they are in hyper spend mode. It is true, Fisker is spending money hand over fist. Geeta Fisker answered, “yes,” when asked on the latest earnings call if the company will need to raise more capital in early 2023.

Shares of Fisker are well off their all-time high and the company’s stock is down 29.47% on the year with the last print at $11.10, compared to the Nasdaq Composite down 26.84% year-to-date. There is no doubt Fisker is a speculative investment. It comes with extreme risk and requires a high-level of risk tolerance.

The Fisker Investment Thesis

At the end of last week, the company updated its Investor Presentation. It begins by listing reasons why investors should consider Fisker as an investment. The reasons are as follows:

  • Deploy Fisker design DNA and capability to focus on vehicle attributes that matter most to consumers.
  • Asset-light business model that leverages partner investments in existing architectures, infrastructure, tools and footprint.
  • Premium products at an affordable price poised to capture share in large addressable markets.
  • Digital direct to consumer sales and service model provides class-leading convenience and delight to customers without associated cost and overhead.
  • ESG focus at the core: driving towards maximum sustainability.

Investing in the future

Fisker EV Lineup ---> Ocean, PEAR, RŌNIN

Fisker is a high-growth story. Growth stories are not favorable in the stock market right now. The company is investing today for future growth tomorrow. The company has just over $1 billion in cash to invest in getting its products to market. Fisker has a lot to prove to the market.

It is in the process of doing just that. The company is plans to bring the Fisker Ocean to market by November 2022. It has the Fisker PEAR project progressing along with Foxconn. And, it is over a year into development on the Fisker RŌNIN.

We’ve already told you why we love Fisker as a company. Its focus around ESG is core to the business. We like what the company is doing to create the world’s most emotional and sustainable vehicles, helping to build a clean future for all. It is also nice to see the company share photos and videos throughout the process.

We understand the need to be patient to see how this story unfolds over the next few years. We are prepared to lose our entire investment in Fisker. That should be true for anybody that invests in high-growth startup companies. Just like Jim Cramer, we are not financial advisors or providing financial advice. You need to make your own financial decisions.

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