FILE PHOTO: Electric-vehicle maker Fisker Inc. introduces the PEAR electric vehicle in Huntington Beach, California, August 3, 2023. REUTERS/Mike Blake/File Photo
NEW YORK (Reuters) - Shares of electric-vehicle startup Fisker Inc rose by more than 20% on Tuesday after the company reaffirmed its plan to increase deliveries of its flagship Ocean sports utility vehicle, and a bullish Wall Street analyst report.
The EV maker said it had built 5,000 Ocean SUVs and expects to ramp up deliveries to 300 units per day later this year, reiterating a plan announced earlier this month by Chief Executive Henrik Fisker.
Fisker's shares rose as high as $6.47, and were on course for their biggest daily percentage gain since April. The stock, however, is down about 12% this year and is a fraction of its all-time intraday high of around $32 reached in March 2021 during a pandemic boom.
Fisker is a "pure-play EV force" that offers investors "exposure to the rapidly growing EV market" given its "lower risk business model" compared to its peers, said Bank of America analysts, led by John Babcock, as the bank reinstated coverage of the company with a "buy" rating.
"The automotive industry is undergoing a once-in-a-century revolution with technology advancement on electrification, autonomy, and digitization," the analysts said. "These key mega-trends are creating significant growth opportunities for OEMs (other equipment manufacturers) and suppliers alike that we expect to persist for the next decade plus," they added.
California-based Fisker has so far delivered about 900 vehicles in the U.S. and Europe. Unlike other EV makers, Fisker has outsourced its vehicle production to Canadian auto part supplier Magna International.
(Reporting by Chibuike Oguh in New York; Editing by Lance Tupper and Deepa Babington)
