LOS ANGELES - Fisker Inc. (OTC:FSRN), an electric vehicle manufacturer, has expanded its U.S. dealership network by signing a new dealer partner in Miami, Florida. This addition marks the company's second dealership in the state, complementing the existing Fisker Jacksonville location. The latest partnership is part of Fisker's broader strategy to increase its presence in key markets, with six U.S. dealer locations now operational.
The expansion extends beyond the United States, with Fisker announcing new dealer partnerships in Hilleord, Denmark, and Innsbruck, Austria. These European additions bring the company's total number of dealer partners in the region to 12, building on previous agreements in Austria, France, Germany, Norway, and Switzerland.
Fisker's growth strategy follows a significant price reduction on several 2023 model year vehicles, including the Ocean Extreme, Ultra, and Sport trims. The reductions, which took effect on March 29, 2024, saw the Ocean Extreme's Manufacturer's Suggested Retail Price (MSRP) drop by $24,000 to $37,499. The price adjustments are part of Fisker's efforts to make electric vehicles more accessible and competitive in the market.
The Fisker Ocean SUV, particularly the Ocean Extreme model, boasts an EPA-estimated range of 360 miles, which the company claims is the longest range for a new electric SUV in its segment in the U.S.
The vehicle also features an estimated WLTP range of 439 miles in Europe. Fisker emphasizes the Ocean Extreme's sustainable credentials, highlighting its use of recycled and bio-based materials, carbon-neutral production, and rooftop solar panels that can add up to 1,500 miles of range annually under ideal conditions.
Fisker Inc., headquartered in California, is focused on aligning individual mobility with environmental sustainability. The company's mission is to produce the "world's most sustainable and emotional electric vehicles."
The information in this article is based on a press release statement from Fisker Inc.
InvestingPro Insights
Fisker Inc.'s expansion in the U.S. and European markets comes at a time when the company's financial metrics reflect a challenging position. According to InvestingPro data, Fisker Inc. has a market capitalization of $13.67 million, which can be considered relatively small for an automotive manufacturer. This could impact the company's ability to scale up and compete with larger players in the industry. Despite an astonishing revenue growth of 79,693.27% in the last twelve months as of Q4 2023, the company's gross profit margin stands at -37.72%, indicating that it spends more on costs associated with goods sold than it earns from sales. Such a deficit could be a concern as Fisker Inc. aims to expand and offer price reductions on its vehicles.
Two InvestingPro Tips that stand out for Fisker Inc. are the analysts' anticipation of sales growth in the current year and the stock being in oversold territory, as suggested by the Relative Strength Index (RSI). The expected sales growth aligns with Fisker's aggressive expansion strategy and price reductions, potentially signaling a positive outlook for the company's revenue. Meanwhile, the oversold condition of the stock could indicate a buying opportunity for investors who believe in the company's long-term prospects.
For readers looking to delve deeper into Fisker Inc.'s financial health and future prospects, InvestingPro offers additional tips and metrics. There are currently 19 more InvestingPro Tips available for Fisker Inc., which can provide further insights into the company's performance and valuation. Readers interested in accessing these tips can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
InvestingPro's fair value estimate for Fisker Inc. is $0.03, significantly below the current trading price, suggesting that the stock might be overvalued at present. With Fisker's next earnings date on May 13, 2024, investors and stakeholders will be keen to see how the company's strategic moves translate into financial performance.
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