What happened
After reversing more than 3% yesterday, investors are shifting gears and driving shares of Fisker (FSRN 14.09%) higher today. Fueling the bulls' buying activity today is a Reuters article that focuses on the electric car company's efforts to scale up production.
As of 3:50 p.m. ET, shares of Fisker are up 5.3%.
So what
Uninterested in driving in the slow lane, Henrik Fisker, the company's CEO, indicated to investors that he's open to partnering with other companies to get drivers behind the wheels of Fisker's electric vehicles faster. At the Reuters Automotive Conference, underway this week in Munich, Henrik Fisker stated:
Buyers aren't loyal anymore to their traditional brands. That changes everything. If we collaborate with someone, you can scale quicker ... it could be with suppliers, other car companies, tech companies -- we are exploring all these avenues.
Besides insight into the company's willingness to partner with another company on the road to increasing production, Fisker reaffirmed the company's projection for the second quarter. Consistent with what the company reported during its first-quarter 2023 earnings report, Fisker stated that the company expects to produce 1,400 to 1,700 Ocean SUVs in Q2 2023.
With regard to the entire year, Fisker reaffirmed the company's production forecast of 32,000 vehicles to 36,000 vehicles.
Now what
Investors are interpreting management's flexibility in ramping up production as a green flag today. Fisker recently hit a bump in the road, reducing 2023 production guidance, but investors seem to think that management is taking the right tack in considering a partner. How well the company executes its strategy to increase production, however, remains to be seen, so those considering a ride with Fisker should exercise caution.
