Fisker stock price analysis: neutral outlook with a bullish bias

Fisker (NYSE: FSR) stock price has underperformed in the past few weeks even as American stocks move to a bull market and as Tesla surges. The stock was consolidating at $5.70 on Thursday, about 34% from the lowest point this year.

Fisker is ramping up production

Fisker is an electric vehicle company that seeks to become a major competitor in the industry. The company uses a different model than other EV companies. Instead of building EVs itself, the company has partnered with Magna International. 

This arrangement is similar to the one that Apple uses. Apple does research and development (R&D) and then outsources manufacturing to companies like Foxconn. As a result, the two companies can focus on their areas of specialty.

Magna recently started manufacturing vehicles for Fisker. And in a recent statement, Fisker said that it was on track to hit its Q2 production target of between 1,400 and 1,700 vehicles. It hopes to manufacture between 32k and 36k vehicles this year. This is a major milestone for a company that started manufacturing recently.

Fisker’s flagship product is known as Ocean and has a 360-mile range, making it one of the best in the sector. Tesla’s Model Y has a range of about 331 miles. Fisker has over 60k reservations. According to KBB, a brand-new Fisker Ocean starts at $37,500 but the ones being sold are going for at least $69,000.

This is a bit expensive considering that Tesla’s Model Y is going for about $50,000. Hyundai IONIQ Q starts at $41k, which is notable because the car has won several awards, including World Car of the Year in 2022. 

Therefore, I believe that Fisker will likely face significant competition in the future. As a result, it will need to cut prices to compete with its competitors.

Fisker stock price forecast

FSR stock by TradingView

In my last article on Fisker Automotive, I recommended that investors should avoid the shares until they moved above $6.50. This view was accurate since the stock has remained in a consolidation phase since then.

The stock is still consolidating at the 25-day and 50-day exponential moving averages (EMA). A closer look shows it has remained below the descending trendline shown in blue. It has also formed a small inverted head and shoulders pattern.

Therefore, the outlook of the stock is neutral with a bullish bias. This bias will be confirmed if it manages to move above the descending trendline. 

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