The electric vehicle company inked a long-term manufacturing contract with Magna International
The shares of Fisker Inc (NYSE:FSR) are up 2.6% at $18.20 ahead of the bell this morning, following news that the electric vehicle company inked a long-term manufacturing contract with Magna International (MGA) to build the Fisker Ocean electric SVU. Building of the vehicle will begin in November 2022.
The stock suffered a dramatic slide from its March 2 record high of $31.96, tumbling all the way to the $10 level to notch a six-month low in mid-May. The security rallied off this level into June, but found rejection at the $19 mark late last week. Investors shouldn't fret just yet though, the 80-day moving average looks to have caught most of this week's pullback, and FSR is still up over 71% year-over-year.
FSR could benefit from a short squeeze. Short interest climbed 21.1% in the last two reporting periods, and now the 44.86 million shares sold short make up 32% of the stock's available float. It would take exactly three days to cover these pessimistic positions at FSR's average daily pace of trading.
Analysts, on the other hand, are mostly optimistic. Of the seven in coverage, five say "buy" or better, and two a "hold." Plus, the 12-month consensus price target of $23.22 is a 27.3% premium to current levels.