We analyze the impact of short sellers on Fisker’s stock and strategies to counteract their influence.
Today, Fisker stock neared an all-time low as it hit $4.30 per share, coming within pennies of the April 21st, 2023, low of $4.26. At the close of the NYSE this afternoon, Fisker stock finished the day at $4.37 per share, experiencing a decrease of $0.42 (-8.76%) on almost double the volume, totaling 12.8 million shares. The company reports earnings on November 8th before the stock market open. Fisker shares have faced pressure since mid-September when the stock reached a near-term high of $7.05 per share.
This comes as Fisker opened up its Q&A platform for retail shareholders for the company’s upcoming Q3 2023 earnings call. Retail shareholders can submit and upvote questions once they register. Throughout the morning, 155 participants have submitted a total of 43 questions, representing 679.3K shares. The answer why Fisker shares are near an all-time low probably sits somewhere within those questions. We’ve combed through the questions, but have not submitted any ourselves this go around. We’re still waiting for Fisker to publicly address short sellers wreaking havoc in their stock.
Short Sellers and Fisker’s Stock: A Growing Challenge
Right now, Fisker holds the fifth spot among all publicly traded companies with the highest percentage of outstanding shares being sold short. Considering the vast number of publicly traded stocks, this is quite noteworthy. The short interest in Fisker’s stock is currently at 44.03%, meaning that out of every 100 shares outstanding, 44 are essentially betting against the company’s success. Now, let’s talk about bulls and bears—bulls root for a stock to rise, while bears prefer it to fall. Presently, the bears seem to be winning the stock game.
Strategic Response to Short Interest
Fisker needs a game-changing strategy to address the challenge posed by substantial short interest and counteract those betting against the company’s success. Adopting a multifaceted approach is key to navigating this complex situation. Transparent communication is paramount. Fisker should prioritize keeping stakeholders, including shareholders and customers, well-informed about ongoing projects, future plans, financial health, successes, and challenges. Active achievement and publicity of operational milestones and product launches will serve to demonstrate the company’s progress and operational strength. Additionally, a focused effort on improving financial performance and reporting can positively influence shareholder sentiment.
Surprising the Bears: A Critical Aspect of Fisker’s Strategy
However, a critical aspect of Fisker’s strategy should involve surprising the bears to catch them off guard. The specifics of this unexpected move remains uncertain. However, Fisker must implement a measure that instills fear in those betting against the company. Despite the bears’ perceived intelligence and past successes, their luck may be on the brink of changing. Fisker needs to undertake an initiative that disrupts their expectations and potentially shifts the dynamics in the stock game. This bold move could be the catalyst needed to redefine the company’s position in the stock market.
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