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Shares of Fisker Inc. dropped more than 4% Wednesday and were poised to end at a record low amid rallies for shares of other EV names and a broader advance for U.S. equities.
Fisker’s stock
FSR,
is down for three straight sessions, losing about 13% in the period. The stock has dropped 79% this year, putting it on pace for its worst yearly performance.
The downdraft comes as shares of Rivian Automotive Inc.
RIVN,
and Lucid Inc.
LCID,
to name a few, were rallying, up nearly 10% and 7%, respectively, more in tandem with a finding support on a rebound for U.S. stocks.
Fisker, which is dubbed the “Apple of autos,” went public three years ago. The company contracts out car manufacturing, keeping in-house design and consumer interfaces.
The company last month reported a wider quarterly loss and sales that missed the mark, underscoring the difficulties of turning a profit in EVs. Last week, it lowered its production guidance for the year to just over 10,000 vehicles, from previous guidance of up to 17,000 vehicles.
Fisker earlier this week saw a downgrade from analysts at Evercore ISI, who said that the stock downgrade to the equivalent of hold, from buy, was related to the reduced guidance.
“We know when it’s time (way overdue) to throw in the towel,” the analysts at Evercore said. “In addition to a general lack of execution or tangible evidence of increased execution, we see [Fisker’s] next 12 months as a highly precarious tightrope of execution, brand risk, capital raises and dilution.”
Fisker’s stock yearly losses compare with a 19% gain for the S&P 500 index
SPX
in the same period.
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