Fisker (OTCMKTS:FSRN) is up more than 1% today but the company has reported even more news that should be concerning for investors. Amid recent months of struggling, the electric vehicle (EV) company has implemented multiple production halts. Now, though, Fisker has also announced that it will only make sales to customers in states where it has a dealership partner.
Fisker has pivoted toward a dealership-centric business model over the past year. Given how poorly Fisker stock has performed in 2024, it’s safe to say that this shift hasn’t helped the firm. But now the EV startup is limiting itself even more, which stands to compromise shares even further.
How concerned should investors be about this latest development? Let’s take a closer look.
What’s Happening With Fisker Stock?
True, Fisker stock has seen some slight momentum today. Shares closed up about 1.5% today despite consistent volatility. But even when FSRN stock makes progress, it’s hard to be too optimistic about its prospects.
Shares have surged unexpectedly on dealership news and buyout speculation before only to quickly end up back in the red where they began. Even last week’s meme stock rally didn’t do much for this troubled stock.
Fisker’s decision to limit its direct sales may soon push shares down even more. Recently, the EV firm announced that its roadside assistance service would be discontinued. Now, the company is reducing its operations even more. As EV reports:
“Previously, U.S. customers could order vehicles directly from Fisker and have them delivered to any state. Now, potential buyers based in states where the EV startup has no dealership partners are displayed with a message saying ‘Looks like there are no vehicles near you.’”
While this strategy will reduce Fisker’s operating expenses, there’s also profits to consider. How much trouble will potential buyers be willing to go to in order to purchase a Fisker EV? Given the severe problems drivers have reported, it would make sense for customers to seek a vehicle elsewhere, particularly as the EV market expands and more companies offer lower-cost EVs and hybrid models. On the whole, this news suggests that the startup’s future looks as questionable as ever — and that Fisker stock is still in a race to the bottom.
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On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
