Shares of electric vehicle (EV) upstart Fisker (FSR -5.68%) jumped as much as 35.6% on Friday after the company announced its fourth-quarter 2020 financial results. The stock ended the session with a 32.5% gain.
Fisker isn't generating any revenue, but the company did report a $12.0 million loss, or $0.05 per share, and cash on hand of $991.2 million. Management also said that reservations for the upcoming Fisker Ocean stood at 12,467, with the daily reservation rate increasing 400% since mid-October 2020.
The company said that it was on track to begin production of the Ocean in the fourth quarter of 2022 in Europe, with production at Foxconn following a year later. Simply making progress on vehicle production was enough for this EV stock's investors to be happy about today.
Since Fisker is still pre-revenue, investors are looking for progress toward its goal of becoming a viable automaker long-term. The number of reservations is what I will be watching most because it indicates that there will be demand for the company's products. I wouldn't take too much from this earnings report because revenue is still nearly two years away, but for now, we can see that Fisker is working toward making its EV a reality.