After a 58% drop since the start of this week, Fisker stock price is set to open 17% higher. The stock of the troubled EV maker has been in a tailspin since the release of its Q4 earnings report which raised bankruptcy concerns among the stockholders.
These concerns intensified as the Wall Street Journal reported that the automaker had hired advisers for a possible bankruptcy filing. However, the official statement from Fisker said that the firm is still exploring its options to raise additional capital and is seeking a partnership with a large automaker.
Today's 17% surge can be a result of Fisker's official response to the potential bankruptcy claims on Thursday. At press time, Fisker stock was changing hands at 0.18% during the early hours of the Friday session. Seeing how the stock reacts as the session progresses will be interesting.
The Q4 earnings revealed a net loss of $463 for Fisker despite a revenue of $200 million. The company's CEO called the last year challenging, while also acknowledging the company's poor financial health. Additionally, Fisker Inc. vowed to lay off 15% of its workforce in order to stay afloat for another year.
In light of these significant developments, the ongoing bankruptcy concerns come as no surprise. Even if the firm evades bankruptcy, it will be almost impossible for it to stay in business without securing additional funding or a partnership with a major industry player.
While the current stock price might seem tempting for many investors, the company's financial health remains the major cause of concern. A 30% bounce in a stock like NYSE: FSR is not that surprising, considering its tiny market capitalization of only $100 million.
Therefore, Fisker stock price forecast will remain bearish as long as it trades below $0.75. This level acted as a support at the start of this year and may not act as a resistance. A clear break above this level might boost investor sentiment around the stock.
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