4 reasons why stocks of Fisker and other electric vehicles could drop
Fisker stock was down again on Monday – perhaps because investors fear the electric vehicle maker isn’t pushing to roll out its SUV faster or maybe just because they’re just cooling all the start-ups of electric vehicles.
After trading closed on Friday, Fisker (ticker: FSR) gave investors something to think about over the weekend. In addition to announcing that first quarter results will be released next Monday, the company said it “remains on target” to start production of the all-electric Fisker Ocean in the fourth quarter of 2022 – and is sticking to it. its plan to unveil the production version of Ocean at the LA Auto Show in November.
Despite no change in the timing, stocks were down 9.7% in midday trading. The S&P 500 was down 0.1%; the Dow Jones Industrial Average rose 0.8%. The stock is down 30% over the past month.
Investors might fear that the ocean is entering a sea of new competition. Goldman Sachs analyst Mark Delaney has about a dozen all-electric SUVs expected to be available in the United States before the Ocean hits the market.
Or they might be pissed off about something even bigger – how well the entire EV industry is doing. Other stocks also fell.
Lordstown Motor (RIDE) shares have fallen about 73% in the past three months.
(GOEV) is 57% off. Shares of Arrival (ARVL) and Churchill Capital Acquisition Corp IV (CCIV), the special purpose acquisition company slated to merge with Lucid Motors, are down 34% and 42% respectively.
And Workhorse (WKHS) shares fell double digits on Monday after slashing its full-year delivery forecast from around 1,800 to 1,000 all-electric vans. The company cited a shortage of parts – from plastics made in Texas, which was hammered by winter conditions, to semiconductors, which rocked the entire auto industry. And investors may be wringing their hands on the constant pace of supply chain issues.
All the problems put together make investors think more about the risks of EV start-ups rather than the potential benefits.
And the fact that Tesla (TSLA) shares were also down on Monday, and 25% over the past month, didn’t help either. And as does the world’s most valuable automaker, so does the industry.