Why Fisker Stock Jumped Today

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What happened

Shares of electric-vehicle company Fisker (NYSE:FSR) are making up for Monday’s 4% drop today as the name trends on Reddit’s WallStreetBets online community. As of 10:40 a.m. EST, shares of Fisker were 12.7% higher than Monday’s close. 

So what

The stock dropped yesterday after a report that the company had abandoned plans to develop a solid-state battery that it had previously said would give its vehicles a 500-mile range and a quick recharge. 

But investors, or traders, are moving shares up today, as Fisker joins the list of heavily shorted stocks being discussed on the WallStreetBets forum. Fisker had about 10% of its shares held short as of mid-February, according to MarketWatch.

Now what

Fisker is not planning on manufacturing its own vehicles. Its all-electric Ocean SUV is scheduled to begin production in the fourth quarter of 2022. The Ocean will be a Fisker brand initially built in Europe by manufacturing partner Magna (NYSE:MGA). The Ocean will use a modified version of a Magna-developed EV platform. 

The company has also recently announced a new partnership with technology company Foxconn — also known as Hon Hai Precision (OTC:HNHPF) — with plans for Foxconn to manufacture up to 250,000 electric vehicles annually under the Fisker brand.

Long-term investors that believe in the technology and business plan may have good reason to own the stock, but today it seems traders, not investors, are moving it.

Should you invest $1,000 in Fisker, Inc. right now?

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