EV Maker’s Stock Prices Tank After Painful News
We all know the political left and climate change activists are pushing “going green” and electric cars as much as possible. But the timing just isn’t right. And the fact that yet another EV manufacturer just cut production proves it.
Enter Fisker, Inc.
The California-based EV company just made a rather big announcement. As Reuters reported, they have cut production forecast for the year down to between 13,000 and 17,000 units. They originally predicted between 20,000 and 23,000.
Well, they can’t afford to keep making EVs only for them to sit on a car dealer’s lot and never be sold. Because that’s what’s happening to most that they’ve produced thus far this year.
The sad fact for them is that people just can’t afford EVs right now, not with Biden’s disastrous economic policies and sky-high inflation. At present, most Americans are struggling to just put food on the table and pay off their debts.
Let’s just say buying an all too-expensive big purchase, especially one with so many other issues that haven’t yet been hammered out (charging issues, battery fires, battery range, cold-weather malfunctions, etc.), is the last thing on most people’s minds.
The even sadder news for Fisker is that such an announcement has also caused its stock to plummet.
As Reuters reported, Fisker stock plunged more than 24 percent on Tuesday. The all-time low per share was $3.11. It did eventually come up a bit, to $3.34 by the end of the day. But it’s still a drop of 18.9 percent.
As CFRA Research analyst Garrett Nelson said, it’s adding “insult to injury for one of the market’s most highly-shorted names.”
It also raises major questions, and not just about Fisker specifically.
This comes after numerous other EV makers have also cut production goals, all citing the economy and lack of demand.
From smaller EV companies like Canoo, who cut production by half on Tuesday, to General Motors, who also reduced EV manufacturing, things just aren’t looking good for EVs.