Fisker Inc, a electric vehicle (EV) startup, has announced its plans to increase daily deliveries to 300 vehicles in the United States and Europe. The company has already built 5,000 Fisker Ocean SUVs, with over 900 deliveries made and several hundred more to be completed this week.
This positive news from Fisker has boosted its stock, with almost a 10% increase to $5.82. Analysts from the Bank of America are confident in Fisker’s prospects and predict that the company will reach profitability before interest, taxes, depreciation, and amortization (EBITDA) in 2024 as a result of its production increase. They have given the stock a “Buy” rating and set a target price of $8.
The production increase is expected to be a significant catalyst for Fisker, as it has a lower-risk business model compared to other EV companies. This production increase has also led to investor support in other EV stocks. Polestar and Rivian Automotive Inc saw increases of 9.6% and 5.2% respectively, while Lucid Group Inc and NIO Inc recorded increases of 3.4% and 0.5%.
In contrast, Tesla’s stocks fell by 1.2% following reports of an investigation by the European Union into alleged unfair subsidies for its exports to China.
Fisker’s progress in increasing deliveries and the positive outlook from the Bank of America have generated optimism among investors in the EV sector. As the company continues to ramp up production and meet demand, the future looks promising for both Fisker and other EV manufacturers.
– Bank of America analysts
– Emily Jarvie from Proactive Investors