Why did Fisker's stock drop in December and what's next for the company?

HONG KONG - Feb. 4, 2022 - PRLog -- That suggests there will be a lot of volatility, with high jumps and big drops. According to data given by S&P Global Market Intelligence, Fisker shares fell by 26.5 % in December.

However, during the last two months, such volatility hasn't resulted in any change. In reality, Fisker's stock has only dropped 2% in the final two months of 2021 following a large spike in November. There was no specific bad corporate news that caused the December drop. With its manufacturing partner Magna International, it continues to make progress toward starting vehicle production later this year.

The arrangement with Magna, according to CEO Henrik Fisker, will provide the firm a competitive advantage. To build its automobiles, Fisker will pair software developers in California with Magna's production team in Austria. Fisker recently mentioned a driver assistance system it is creating as an illustration of this benefit. It will contain a first-to-market digital imaging radar technology, according to the business. "Our asset-light, rapid-product-development business strategy enables us to deliver these state-of-the-art active safety technologies to market earlier than our competition," Henrik Fisker said in a statement while recently promoting the technology.

Fisker, on the other hand, is still a speculative, pre-revenue start up. In December, numerous growth and technology Firms with high valuations and/or modest profitability were unpopular. Fisker's stock is expected to be volatile for the foreseeable future, at least until it begins production later this year.

For the time being, the Firm is well financed, having $1.19 billion in cash on hand by the end of 2021. It has more than 23,500 bookings for the Ocean SUV as of Jan. 2, including 1,400 fleet reservations. Interest in 2021 has increased, according to Fisker, with reservations up 26% in November and December. When manufacturing and client test drives commence in 2022, the final proof of concept will be achieved.

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