Fisker should break even next year as the embattled EV startup ramps up production after supply headwinds, Bank of America said Tuesday. Fisker stock surged off a low base.
Also, on Tuesday, California-based Fisker announced plans to "significantly increase" deliveries to 300 EVs per day later this year, citing strong demand in the U.S. and Europe. The startup said it has delivered 900 Ocean electric SUVs to customers so far, after starting deliveries in the second quarter.
Accelerating EV volumes should provide a "key catalyst" for Fisker stock, BofA analyst John Babcock wrote in a note to clients. Fisker twice slashed production targets this year due to supply-chain issues.
Babcock projects Fisker revenues near $3 billion for 2024. That would be more than double an estimated $1.2 billion in 2023 and would dwarf $342,000 in 2022.
"Ultimately, the ramp in volumes should get Fisker to EBITDA (earnings before interest, taxes, depreciation and amortization) breakeven in 2024," the BofA analyst added. The firm reinstated FSR stock with a buy rating and $8 price target.
Analysts, on average, expect Fisker to deliver its first quarterly profit in Q4 2024 and its first annual profit in 2025, according to FactSet.
Fisker also has a lower-risk business model than peers, Babcock said.
Unlike Tesla and others, Fisker outsources the actual manufacturing of the electric vehicles that it designs and develops.
The Fisker Ocean sells for nearly $70,000, with lower-cost versions planned.
Fisker Stock
Shares of Fisker stock spiked 11.2% to 5.90 on the stock market today, after tumbling over the prior five sessions. The EV stock briefly jumped above the 50-day moving average and reclaimed the 200-day line.
Tesla stock dipped 0.1% Tuesday. The European Union made it clear that Tesla will be included in its probe of subsidies for Chinese-made EVs imported into Europe.
Auto Technology Stocks: Visteon, Luminar
On Tuesday, Bank of America also reinstated coverage on Visteon with a buy rating. Babcock called Visteon "one of the fastest growing auto suppliers, leveraged to industry megatrends, including digitalization and electrification." VC stock was little changed.
He reinstated Luminar Technologies with a neutral rating. The Lidar supplier is "leveraged to the megatrend of vehicle autonomy," he said, while warning that catalysts associated with an earnings and cash flow inflection are a few years out.
LAZR stock fell 3.6%, nearing record lows.
