Investing in Fisker:Worth the risk?

[DeluxeStang]

Do you guys think it's worth investing in fisker? On one hand, they're dealing with financial issues currently, and are having to pause production for a little over a month while they try to find their footing. Like most startups, they could go belly up any minute now. 

 

On the other, they came out today and said they've secured a 150 million dollars in additional funding, have over 200 million dollars in inventory that they're working to sell, and are in talks with collaborating with another brand, likely Nissan, to produce electric trucks and using Nissan's dealership network to sell their cars direct to consumers. 

 

Most importantly, unlike so many other startups who have nothing more than renderings and empty promises, Fisker is actually producing and selling thousands of cars. Not to mention they're investing in high volume segments like crossovers, midsized trucks, and affordable EVs, all of which actually have demand from consumers. 

 

I'm not exactly in a rush to run out and give them all of my life savings. But their current share price is about as low as it could possibly get, 15 cents a share down from a 52 week high of over $7. Which means if you invest a grand or two, you're going to own literally thousands of shares. I've never invested in a high risk, high reward company before, it's not the type of game I usually play. But I feel like it's worth the risk of investing a couple thousand. If you lose it, it's not fun, but it's not the end of the world. Let me know what you guys think. 

 

 

[akirby]

At this point it’s a crap shoot.  The thing to ask is given the slow down in EV sales do they have the ability to compete and make money or were they dependent on an explosion of EV sales?

[mackinaw]

Depends what your level of risk aversion is.  If you are in the financial position of having some money to play with, buying shares of Fisker may pay off.  Or it may not.  I've been thinking about doing the same.  Haven't pulled the trigger yet though. 

[DeluxeStang]

2 hours ago, akirby said:

At this point it’s a crap shoot.  The thing to ask is given the slow down in EV sales do they have the ability to compete and make money or were they dependent on an explosion of EV sales?

Exactly, it's very touch and go at the moment. I think they're running into the same issues other EV startups are. The only reason I'm even considering it is I see Fisker making some smart moves that a lot of other EV startups aren't. 

 

For instance, they're going after the electric truck market like everyone else, but instead of jumping into the full sized segment where there are a ton of rivals, they're planning on entering the midsized EV truck space. A space which they would have to themselves, at least for several years if they stick to their 2025 release schedule. 

 

They're going after profitable and high volume segments, in a way that doesn't put them directly head to head with established OEMs which would rip them apart. The pear is another example, an affordable EV that could potentially beat Tesla and Ford to the market. It's a difficult decision for sure, there are a ton of things about this company that are sketchy, but also a lot of areas that show promise.

 

It's very hard to predict at this point in time of the company is gonna rebound, or go belly up.

[DeluxeStang]

2 hours ago, mackinaw said:

Depends what your level of risk aversion is.  If you are in the financial position of having some money to play with, buying shares of Fisker may pay off.  Or it may not.  I've been thinking about doing the same.  Haven't pulled the trigger yet though. 

Yeah basically this would be a case of only betting the amount of money I was comfortable with losing because that company has such an uncertain future at the moment. 

[CurtisH]

57 minutes ago, DeluxeStang said:

For instance, they're going after the electric truck market like everyone else, but instead of jumping into the full sized segment where there are a ton of rivals, they're planning on entering the midsized EV truck space. A space which they would have to themselves, at least for several years if they stick to their 2025 release schedule. 

Rivian’s truck is really more of a midsize truck, so they wouldn’t have the market completely to themselves.  

[mackinaw]

1 hour ago, DeluxeStang said:

Yeah basically this would be a case of only betting the amount of money I was comfortable with losing because that company has such an uncertain future at the moment. 

 

In case you haven't seen this yet, Fisker has suspended EV production for the next six weeks.  On the other hand, they're rumored to be linking up with some OEM (rumored to be Nissan).  So who knows what to make of this company.

 

https://www.wired.com/story/fisker-suspends-electric-vehicle-production/

[rmc523]

I've seen rumors of bankruptcy.

[atomcat68]

I think history will repeat itself when Fisker goes bankrupt and some one else will buy up the ashes of the company. This is what happened to the Karma. Maybe it will be Nissan, but if not, a Chinese automaker will buy it.

 

I'd like to see Fisker rebadged as Datsun...