Fisker stock alarm: Fisker drastically reduces direct sales

Fisherman (OTCQB:FSRN) rose more than 1% today, but the company reported even more news that should worry investors. In recent months of struggle, the electric vehicle (EV) company has imposed several production halts. But now Fisker has also announced that it will only sell to customers in states where it has a dealer partner.

Fisker shifted to a dealer-centric business model last year. Given Fisker stock’s poor performance in 2024, it’s safe to say that shift hasn’t helped the company. But now the EV startup is narrowing its scope even further, which could put shares at even further risk.

How concerned should investors be about this latest development? Let’s take a closer look.

What happens to Fisker shares?

Fisker stock did gain some momentum today, closing today up about 1.5% despite consistent volatility. But even if FSRN stock makes progress, one cannot be too optimistic about its prospects.

Share prices have jumped unexpectedly before on trader news and takeover speculation, only to quickly end up back in the red where they started. Even last week’s meme stock rally didn’t do much for this troubled stock.

Fisker’s decision to limit its direct sales could soon push shares even lower. The electric car company recently announced it would end its roadside assistance service. Now the company is scaling back its operations even further. EV Reports:

“Previously, U.S. customers could order vehicles directly from Fisker and have them delivered to any state. Now, potential buyers in states where the EV startup doesn’t have dealer partners will see a message saying, ‘Looks like there are no vehicles available in your area.'”

While this strategy will reduce Fisker’s operating costs, profits must also be considered. How much effort will potential buyers be willing to go through to purchase a Fisker electric vehicle? Given the severe problems drivers have reported, it would make sense for customers to look elsewhere for a vehicle, especially as the electric vehicle market grows and more companies offer more affordable electric vehicles and hybrid models. Overall, this news suggests that the startup’s future looks as questionable as ever – and that Fisker stock is still in a race to the bottom.

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At the time 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 author and are subject to InvestorPlace.com’s disclosure policies.