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Fisker Stock Projections: Bear Market Necessity?

Fisker Stock Forecast 2022

Fisker’s (NYSE: FSR) stock is down about 26% so far this year. Fisker has come up with a new way to make electric cars, which could be good for the stock. Fisker is a company that makes electric cars. Fisker stock forecast has had a rough year so far, just like many of its competitors.

If you believe in Fisker stock, you might need to be patient. The business hasn’t sold its first electric car yet. Though production of its first car, the Fisker Ocean, won’t start until November 2022. Over 30,000 individual orders and 1,600 orders from fleets have already been placed for the new model from Fisker.

The Fisker Ocean is an electric SUV with room for five people. The SUV can go anywhere from 250 to 350 miles on a single charge. The Ocean also has all of the latest bells and whistles that help drivers that owners of electric vehicles have come to enjoy.

Fisker thinks that the Fisker Ocean Ultra will cost $49,999. The company also thinks that the Fisker Ocean Sport will sell for $37,499.

Production Forecast

Fisker stock forecast says that its electric cars are made with few assets. The model is called the Fisker Flexible Platform Agnostic Design by the company (FF-PAD). Fisker’s most recent annual report says that FF-PAD is a process that can be used to design and develop any electric vehicle. Its asset-light business model means that Fisker will be able to make cars for less money than other companies that make electric cars.

FF-PAD helps electric car companies make decisions quickly, keep track of their supply chains, and outsource production. It also cut development costs and time to market, which gave the industry a new way to do business. Fisker’s model can get new car models to the market faster, more efficiently, and with more modern and advanced technology than competitors’ models.

Traditional car companies can build plants with billions of dollars. Fisker wants to cut down on the amount of money it takes to make its cars by letting other people do some of the work. The company plans to outsource by making deals with other firms like Magna International (NYSE: MGA). These companies will make the parts and pieces for electric cars made by Fisker.

By working with a network of partners, Fisker can cut the amount of money it spends on making cars by a huge amount.

Convenient Vehicle Service

When the new Fisker models come out, they will need maintenance just like any other car. The company wants to make it easier for owners to get service. Customers won’t have to make an appointment with the service station and won’t lose access to their care while their car is “in the shop.”

The company says that their cars will need work because of two things. First of all, it can find problems on its own. The driver may also notice that something is wrong with the car.

When either of these things happens, the Flexee app lets owners know. Next, the driver can set up a pickup time and place that works for him or her. After that, service providers will pick up the car, fix it, and give it back to the driver. Fisker thinks that eventually, drivers will be able to get work done on their cars without being there.

Partnerships will also be used to build the service model of the company. Fisker wants to set up a network of auto shops that will pick up and deliver cars, do repairs, and take care of service requests. Because the network will not require Fisker to build dealerships to do the work, the service network will save the company a lot of money.

Fisker Stock Predictions

Fisker sent out a press release on February 16 about its plans for 2021. The company has about $1.2 billion in cash, according to the news release. The money will be enough to get the Fisker Ocean off the ground. Also, the number of orders for the Fisker Ocean grew by more than 400%, to 55,000 per year.

On top of that, the company showed off the Fisker PEAR, its next model. Foxconn (TAIWAN: 2354.TW) has agreed to make the cars in the United States. Foxconn is based in Taiwan and is already part of the auto supply chain, which is also good for the company.

People may worry about Fisker’s decision to outsource. You probably already know that the process will depend on the supply chain. Recently, there have been some big problems in the global supply chain. Because of COVID-19 and low employment, there have been huge slowdowns. One of the industries that has been hit the hardest is the car business. Problems with the supply chain are a risk that investors need to think about.

The press release also had the business outlook for Fisker stock in 2022. The company thinks it will spend between $715 million and $790 million for the whole year. The business broke down its costs into three parts. Research and development will cost between $330 million and $380 million, according to Fisker. Costs for selling, general, and administrative costs are expected to be between $105 and $120 million, and costs for capital investments will be between $280 and $290 million.


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Mambwe Abebe

Mambwe Abebe