$FSR
Like Investing in Tesla Back in 2011
Here’s the crazy thing, though... Fisker is only trading at a $3.3 billion valuation. It’s like buying Tesla back in 2011. Who wouldn’t want to do that knowing what we know now?
And one of Fisker’s EV competitors, Lucid Motors, is already trading at a $36 billion valuation. It is also pre-revenue, with just 10,000 reservations for its luxury EV. It will be generating massive losses as its go-to market is to build its own factories. Lucid will be forced to raise billions to support its own manufacturing effort.
We should remember that only 4.6% of the world’s new car sales are EVs, and only 2% happen in the U.S. There is room for Fisker, Tesla, Lucid, and many other next-generation EV companies. The incumbents are in big trouble.
More importantly, there is room for Fisker’s valuation to rocket 10x or more over the next few years. The next 12 months will be exciting with the auto show in November, soon to be 50,000+ reservations for the Ocean, and production in the fourth quarter of next year. These are catalysts that will drive higher multiples in Fisker’s stock.
As the market understands the quality and demand for the car, the sky is the limit. I want us to get in early on this next-generation EV pioneer before it’s too late.
And there is one final scenario that we ought to keep in mind. If there is one company out there that would eventually be a perfect acquirer of Fisker once it’s ready to take the plunge into electric vehicles, I think by now we all know what company that would be – the big Apple.