As it looks to develop its line of EVs, Fisker Inc. (NYSE: FSR) is gaining attention after securing a sizable sum of cash in convertible debt which sent the stock on a 20% run as the conversion price of the notes is much higher than the stock’s current PPS. While the stock cooled down slightly following its run, FSR stock could further run this week as more details regarding the funding could be released as soon as July 12 after the offering closes. With this in mind, FSR stock remains highly shorted and a short squeeze could occur this week if the company shares positive news.
FSR Fundamentals
As is, FSR plans to sell $340 million worth of convertible notes to an unnamed investor with an option to double that amount to $680 million to fund its operation, increase production, and develop its technology. The conversion price of the notes in the deal is set at $7.8 which indicates that the investor expects FSR stock to be worth more than $7.8.
The capital obtained from this deal will be used to fund the production of a new battery pack line. Additionally, FSR intends to use the capital it obtains from this deal to fund the development and production of the rest of its EV lineup – especially the anticipated PEAR model.
As things currently stand, the deal is set to close on July 11 and the company could share more details regarding after the offering closes. This means that news regarding the identity of the investor behind the deal could be revealed by the company in a PR. If the investor turns out to be a major institution, FSR stock could witness a short squeeze given its high short interest of 43% and 60% of its float on loan which could result in the stock continuing its run over the rest of the week.
Technical Analysis
FSR Stock is in a bullish trend and is trading in an upwards channel. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs which is a bullish indication. With that in mind, the 200 and 50 MAs appear to be close to forming a golden cross that could see the stock continue running. Meanwhile, the RSI is overbought at 79 and the MACD is bullish to the upside.
As for the fundamentals, FSR’s capital raise is bullish news for investors as it shows that the company is attractive for institutions since the investor behind the deal was willing to agree to a conversion price more than the stock’s current PPS. Since FSR is currently witnessing a pullback, the stock could retest its $6.55 support soon which could be a good entry point ahead of more news regarding the funding deal and the investor behind the deal.
FSR Forecast
As things stand, FSR is well-positioned to continue developing its technology and its EV lineup thanks to the recent convertible debt deal. While the deal could contribute to dilution, it is important to note that FSR is still an EV startup and all EV startups require capital to grow their business. Considering the conversion price of the notes, the deal could be bullish for FSR’s shareholders since the investor expects the stock to become more valuable than $7.8. With news anticipated regarding the deal and the identity of the investors soon, FSR stock could be one to watch this week for a potential short squeeze.
FSR Fundamentals
As is, FSR plans to sell $340 million worth of convertible notes to an unnamed investor with an option to double that amount to $680 million to fund its operation, increase production, and develop its technology. The conversion price of the notes in the deal is set at $7.8 which indicates that the investor expects FSR stock to be worth more than $7.8.
The capital obtained from this deal will be used to fund the production of a new battery pack line. Additionally, FSR intends to use the capital it obtains from this deal to fund the development and production of the rest of its EV lineup – especially the anticipated PEAR model.
As things currently stand, the deal is set to close on July 11 and the company could share more details regarding after the offering closes. This means that news regarding the identity of the investor behind the deal could be revealed by the company in a PR. If the investor turns out to be a major institution, FSR stock could witness a short squeeze given its high short interest of 43% and 60% of its float on loan which could result in the stock continuing its run over the rest of the week.
Technical Analysis
FSR Stock is in a bullish trend and is trading in an upwards channel. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs which is a bullish indication. With that in mind, the 200 and 50 MAs appear to be close to forming a golden cross that could see the stock continue running. Meanwhile, the RSI is overbought at 79 and the MACD is bullish to the upside.
As for the fundamentals, FSR’s capital raise is bullish news for investors as it shows that the company is attractive for institutions since the investor behind the deal was willing to agree to a conversion price more than the stock’s current PPS. Since FSR is currently witnessing a pullback, the stock could retest its $6.55 support soon which could be a good entry point ahead of more news regarding the funding deal and the investor behind the deal.
FSR Forecast
As things stand, FSR is well-positioned to continue developing its technology and its EV lineup thanks to the recent convertible debt deal. While the deal could contribute to dilution, it is important to note that FSR is still an EV startup and all EV startups require capital to grow their business. Considering the conversion price of the notes, the deal could be bullish for FSR’s shareholders since the investor expects the stock to become more valuable than $7.8. With news anticipated regarding the deal and the identity of the investors soon, FSR stock could be one to watch this week for a potential short squeeze.