Stock Market

Why Fisker Stock Is Up 100% Over the Past 5 Trading Days

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It’s hard not to notice the fact that Fisker (OTCMKTS:FSRN) stock has enjoyed a truly monumental week. The troubled electric vehicle (EV) producer has been on its last legs lately after being delisted from the New York Stock Exchange. But even while trading over-the-counter (OTC), this penny stock has proven it just won’t die. In fact, Fisker stock has surged more than 100% over the past five days. With shares up another 3% today, it’s impressive that such a struggling firm could see such growth in a short period.

This momentum is due primarily to Fisker’s dealership announcements, which have carried it through the week. However, a new partnership rumor has also picked up steam recently. While the rumor remains unconfirmed, speculation may also be what’s helping Fisker stock stay in the green as investors wait for further details.

What’s Happening With Fisker Stock?

While shares are up today, there isn’t a specific catalyst to cite. Fisker stock has been in full focus all week as investors marvel at its ability to skyrocket, even while the threat of bankruptcy continues to cast a shadow over FSRN stock. True, the company recently reaching agreements with dealerships in both Miami, Florida and around Europe is a promising development. But does it really warrant 100%-plus gains in just five days?

According to the market, yes. What’s more, recent rumors have begun to trend about Fisker being on the verge of a deal with auto giant Stellantis (NYSE:STLA).

Of course, it’s important to note that, as of this writing, neither company has issued any statement to confirm or deny the matter. As such, the rumor remains unsubstantiated. But that isn’t stopping Fisker stock from rising. As EV blog Tesla Mag notes:

“According to rumors, Fisker is in advanced discussions for a partnership with Stellantis, a multinational group with brands such as Maserati, Alfa Romeo, and Chrysler in its portfolio. This partnership could notably concern collaboration on electric vehicle technologies or the joint production of new models. The involvement of Maserati, an emblematic brand of luxury and performance, indicates a possible orientation of Fisker towards the high-end electric segment.”

If these rumors prove true, there’s no denying that they will be a significant boon for FSRN stock. But given Fisker’s troubled history already, an industry leader like Stellantis could easily decide not to take a chance on the firm. After Fisker reportedly misplaced customer payments and thousands of customers canceled their orders, its reputation may be severely tainted. Until Stellantis issues a statement on the matter, it will be hard to assess the future for Fisker stock.

The Road Ahead

So far, Fisker has beaten the odds this week, managing to stay elevated on catalysts that don’t seem too meaningful. Contrarian investors may take this as a sign that the troubled company is making a comeback. However, even with its impressive gains this week, Fisker stock still trades at only 5 cents per share. If it wants to be taken seriously again, this fallen company will have to get much closer to the $1 mark — and it still has a long way to go before that happens.

As InvestorPlace’s Thomas Yeung notes, Fisker’s recent attempts to spur growth are “probably too little, too late.” Even with the recent surge, Yeung highlights that issues with its financing and operations make FSRN stock a clear sell. Recent momentum will likely subside soon.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. 

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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