What happened
Unable to charge up investors' enthusiasm, electric vehicle (EV) stock Fisker (FSRN 57.50%) had fallen 22% from the start of 2023 through the end of Friday's trading session. Today, however, the stock is roaring back thanks to the company's optimistic outlook on 2023 that it shared during its fourth-quarter 2022 earnings report this morning.
As of 12:35 p.m. ET on Monday, shares of Fisker were up 27.5%.
So what
A loss per share of $0.54 was worse than analysts' expectations of a fourth-quarter 2022 loss of $0.42. But investors don't seem as interested in the rearview mirror as they do with the road ahead.
Management reaffirmed its production target of 42,000 vehicles for 2023. While it didn't provide a revenue forecast, management issued other financial guidance for 2023 including a gross margin of 8% to 12% and the potential to achieve positive earnings before interest, taxes, depreciation, and amortization.
Besides the auspicious forecast, investors are likely responding to news that the company cotinues to receive favorable interest from customers. As of Feb. 24, Fisker had reservations and orders of 65,000. This is a modest increase from the 62,000 as of Oct. 31, 2022, but juxtaposed with the declining orders that EV peer Lucid Group (LCID -3.92%) recently reported, investors are undoubtedly happy with Fisker's report.
Now what
It's not surprising that investors' enthusiasm for Fisker is revving up today after management's bullish outlook on 2023. It's crucial for EV investors to remember, though, that there are plenty of potholes that the company might encounter in the coming months, including supply chain constraints and production delays, that could hinder this forecast. Consequently, only those with a comfortable tolerance for risk should consider parking Fisker in their portfolios.
