Fisker (FSR 11.56%), the high-end electric vehicle (EV) manufacturer, saw its shares rise by nearly 9% on Tuesday. That was thanks to a quarterly earnings report that had several encouraging pronouncements and, more directly, to a new order from across the Atlantic.
In its Q1, Fisker -- which hasn't yet brought its Ocean SUV to market -- eked out revenue of roughly $22,000, up from basically nothing in the year-ago quarter or in Q4 2020. On a quarter-over-quarter basis, operating expenses rose 6% to $33.1 million, while the GAAP net loss deepened to nearly $177 million ($0.63 per share) from the preceding $86.7 million.
On average, analysts were expecting a shortfall of only $0.19 per share. However, there were numerous positives in Fisker's earnings release. One is that it still has a strong cash position ($985 million at the end of the quarter). Another is that there is clear customer interest, as Fisker has amassed 16,000 reservations for the Ocean.
But better news came on Tuesday morning. Fisker happily announced that it has signed an agreement with U.K. monthly vehicle subscription service Onto for delivery of up to 700 Fiskers in 2023.
Fisker bulls have to hang on for the ride; the red ink will continue to spill as the EV company cranks up the production of the Ocean. But demand is already robust, as indicated by the order count, and a recently announced arrangement with prominent manufacturer Foxconn (trade name of Hon Hai Precision Industry Co., Ltd.) bodes well for the company's future.