Why buy a fisker

The innovative leasing approach, however, comes with a disadvantage: Fisker loses some foresight into future cash flow as customers aren't locked into paying for a set term. It will still be more than a year and a half before the first buyers can expect to get behind the wheel of an Ocean; Fisker expects deliveries to begin in November Nonetheless, demand appears to be growing. As of March 31, Fisker had more than 14, reservations for the Ocean -- notably higher than the 4, reservations the company had a year prior.

Fisker is pre-revenue; therefore, investors won't be able to evaluate the stock using traditional metrics. But we can use the company's future sales estimate to roughly gauge the price tag. FSR data by YCharts.

While the two companies have similar valuations in terms of future sales, there's a stark difference regarding projected cash flow. The other thing to keep in mind is that these are management's projections.

While it may help you get a rough idea of how the market thinks about these stocks today, they are by no means a crystal ball. There's some understandable excitement about Fisker at this point, but only investors with a high tolerance for risk should seriously consider picking up shares at this point.

For those at the more conservative end of the risk spectrum, are better options for investing in the EV sector. Should it encounter delays, they may foreshadow additional challenges that prevent the company from meeting its longer-term goal of expanding its product line to four vehicle models by Moreover, during those years, Fisker could lose customers to the long-established auto brands that are pivoting to EVs.

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Getting Started. Planning for Retirement. Retired: What Now? Personal Finance. Credit Cards. About Us. Who Is the Motley Fool? Fool Podcasts. New Ventures. Search Search:. Oct 22, at AM. Rekha holds a master's in finance and has worked as a financial consultant.

When she isn't writing, she can be found traveling to a new city or country. Key Points Top EV companies are looking to bring down costs to make electric vehicle pricing comparable to that of traditional vehicles. Fisker's management team has rich industry experience. The company's partnerships with Magna International and Foxconn should help in the timely launch of its first models.

Image source: Fisker. So when you get a Fisker Ocean 12 months from now, your technology is the newest of the newest. If you buy any other car next year, most likely that technology was chosen three years ago.

Now, onto the earnings.