Fisker stock price sits and waits at a record low ahead of earnings

Fisker (NYSE: FSR) stock price is having a bad year as it languishes at its all-time low. It has moved from being one of the most promising Tesla wannabes into a penny stock trading at $0.7525 after falling by 57% in 2024 alone.

Fisker is facing a mountain of challenges as it seeks to become a big EV company. The logistics of moving its vehicles from Austria to the United States is proving to be much harder and costlier than expected. 

At the same time, there are concerns about the quality of its vehicles, according to a recent report by TechCrunch. It has received many complaints, with customers being worried about loss of power and brakes. 

More challenges could emerge soon as the cars spend more time in the road. The company has said that most of these problems are rare and that it had fixed most of them using software updates. If this is correct, it means that the company will not need to do a large-scale recall, which is a good thing.

Fisker has also had to change how it does its business. After initially embracing the direct selling route, the company is now pivoting to using dealers as it seeks to cut costs and take advantage of their huge networks.

I believe that Fisker can handle some of its challenges, especially the ones on logistics. Besides, these issues emerged because the company was in its early days of manufacturing and distribution.

The next important catalyst for the company will come out when it publishes its financial results this month. Analysts expect that it had over $310 million in revenues, a big increase from the previous quarter’s $71.8 million. They also expect that it will narrow its loss from 27 cents to 13 cents per share.

So, how will the FSR share price react after publishing its financial results on this month? It is hard to predict, as many companies like Lyft and Shopify have made some wild swings after their earnings releases recently.

However, my crystal ball (which is often wrong), is that the stock will pop by double digits after its earnings. This view will depend on the strength of its results and an update about its logistics issues, which helped to push it much lower after the last release.

One way to explain this is the Wyckoff Method. As shown above, the stock has moved horizontally this month, which can be a sign of accumulation. This, in turn, could lead to a markup phase, where demand is usually higher than supply. However, this view is highly speculative, meaning that the stock could also retreat after the report.

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