Fisker Stock Is Moving Higher Tuesday: What's Going On?

Fisker Inc FSR shares are trading higher Tuesday after the company provided an update on recent business activities.

What Happened: At the beginning of the year, Fisker announced it was shifting its vehicle distribution strategy toward an innovative Dealer Partnership model in North America and hybrid model in Europe.

On Tuesday, the company said its new model is gaining momentum as more than 100 dealers have expressed interest in becoming a Fisker dealer partner. Fisker plans to hold a dealer event on Jan. 29.

Based on the new dealer initiative combined with direct sales, Fisker said it expects to sell all of its remaining 2023 vehicles by the end of the first quarter. The company noted that it will provide a delivery update next month.

Fisker also said it expects to generate significant cash in the first quarter from the sale of existing 2023 production vehicles that are largely paid for. The company said it expects to achieve a higher contribution to cash flow from Oceans produced and sold in early 2024.

The news comes a day after Fisker said it reduced its outstanding debt under its 2025 convertible notes by $185.5 million after an investor converted a portion of 2025 notes to equity. The company highlighted again Tuesday that its outstanding debt under its 2025 convertible notes was reduced from $510 million to $324.5 million.

Related Link: Toyota Chairman Projects Mere 30% Maximum Market Share For Battery Electric Vehicles

FSR Price Action: Fisker shares closed Monday up 17.3% at $0.9255. The stock was up another 10.2% at $1.02 Tuesday morning, according to Benzinga Pro.

Photo: courtesy of Fisker.