Fisker Inc. going strong despite economic difficulties

SHEUNG WAN, Hong Kong - July 26, 2021 - PRLog -- The Fisker Karma was introduced in 2008 at the North American International Auto Show, while the first deliveries were completed in 2011.

Although the production was cut short due to the supplier of the battery declaring bankruptcy, they managed to sell 2,000 cars worldwide. In 2014, the design, manufacturing, and tooling facilities were purchased by the Wanxiang Group, a Chinese auto parts conglomerate. Then in 2016, the acquired assets were named to Karma Automotive, while the founder of Fisker Automotive, Henrik Fisker, created a new company called Fisker Inc.

The company has yet to manufacture any products, but the shares have risen a lot these past few weeks. This was after the company announced that a contract with Magna had been signed, along with the stock being listed under Russell 3000 index on June 28.

This caused the stock to rise by as much as 45.4% in June alone, causing a sensation to investors. Fisker also announced that a long-term binding agreement was made with Magna, and that the production of their product, Ocean SUV, is to start by November 2022. The product already has more than 17,000 pre-orders and is highly anticipated by the market itself.

Now, although the 45.4% increase in monthly return is very much welcomed by about anyone, future investors should consider the fact that the company has yet to make any revenue. The earliest they can sell cars would be by the end of 2022, and that's only if there's no problem that would arise.

There are also the concerns that are affecting every electric vehicle company at the moment, which is the global chip shortage. Fisker declares that they will not be affected this concern, as their production will only start next year and that their chief technology officer has a great deal of chip industry background, making them very confident with avoiding the current chip shortage crisis.

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