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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.
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