Finally, some good news for Fisker (NYSE: FSR) investors! After a difficult third quarter that had production estimates slashed, a downbeat earnings report, a resigning chief accounting officer, and notice from the New York Stock Exchange for the late filing of its report, investors finally have some positive news heading into 2024. Let’s dig in and see if Friday’s stock price pop of roughly 15% is warranted.

Surprise

With so much pessimism surrounding the company, and a stock price testing new record lows, it didn’t take much to boost the price this past Friday when Fisker announced better-than-expected delivery numbers.

More specifically, Fisker grew deliveries by over 300% from the third quarter to the fourth quarter, reaching roughly 4,700 total deliveries. Fisker produced 10,142 units in 2023 with deliveries beginning in June and taking a big uptick in September and October.

Further, Fisker began deliveries in Canada during December and is now operating in 12 markets across the globe. The first Fisker Ocean Sport — the company’s entry-level trim — recorded its first delivery in the U.K. in December.

Before we surround those figures with a bit more context, it’s worth noting that Henrik Fisker, chairman and CEO, remained optimistic when speaking about the 4,700 deliveries: “This accomplishment represents substantial revenue, and as we accelerate our delivery pace in 2024, I am excited to see faster growth. We have a solid business with relatively low overhead and an award-winning vehicle that customers enjoy.”

Adding context

While the surge in deliveries was very much welcomed by investors, it’s fair to say there is some context worth adding. Investors have to remember that the California-based automaker originally estimated production between 20,000 and 23,000 units before slashing that estimate to between 13,000 and 17,000 units.

Finally, management lowered those estimates yet again to roughly 10,000 units as the company had been struggling with a cash crunch and decided to unlock over $300 million in working capital by reducing production.

Story continues

Gaining momentum

Friday’s announcement likely confirmed to investors that some speed bumps were in the rearview mirror. Investors had hints that deliveries were accelerating when the company noted that over 1,200 vehicles were delivered in October alone, which exceeded the company’s entire third-quarter deliveries.

Fisker’s Ocean has won six different European awards in Germany, France, Denmark, and the U.K., delivered two important over-the-air (OTA) software updates in the fourth quarter, and expanded its physical footprint and customer engagement.

There’s no question the company is gaining some momentum heading into 2024, and the stock could certainly pop higher if the company proves it can expand its delivery infrastructure and close the gap between deliveries and production.

Should you invest $1,000 in Fisker right now?

Before you buy stock in Fisker, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fisker wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

See the 10 stocks

*Stock Advisor returns as of December 18, 2023

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Good News Drives Fisker Stock Into 2024 was originally published by The Motley Fool