2 Electric Vehicle Stocks Recently Downgraded by Goldman Sachs

: FSR | Fisker Inc. News, Ratings, and Charts

FSR – A semiconductor chip shortage and overvaluation concerns have been taking a toll on electric vehicle (EV) stocks of late. While the EV industry’s long-term prospects look bright, many companies in the sector with weak fundamentals are expected to continue retreating in the near term. Goldman Sachs recently downgraded EV manufacturers Fisker (FSR) and Lordstown Motors (RIDE). So, let’s look at those names.

Electric vehicle (EV) stocks saw an astonishing rally last year on investors’ exuberance over the industry’s huge growth prospects. Worldwide governmental initiatives to shift to zero-emission transport as part of the broader goal to build a sustainable energy-based future motivated investor to bet on EV stocks, in some cases irrespective of their fundamentals. In fact, the industry’s potential growth has caused it to now be, arguably, overcrowded with new entrants.

Nevertheless, optimism about the industry and the consequent rally in EV stock prices have pushed the shares of most industry participants to valuations that often don’t justify their current fundamentals and growth prospects. Furthermore, a semiconductor shortage is causing operational disruptions at many established EV manufacturers. Investors also expect a dip in EV demand with an anticipated decline in crude oil prices in the coming quarters.

Consequently,  many EV players that lack the fundamental strength to survive these headwinds are expected lose value.  Goldman Sachs recently downgraded  Fisker Inc (FSR) and Lordstown Motors Corp (RIDE). So, we think it could be wise to stay away from these stocks now.

Click here to checkout our Electric Vehicle Industry Report for 2021

Fisker Inc. (FSR)

Founded in 2016, FSR focuses on the design, development, manufacture, and sale of electric vehicles. In March, FSR signed a memorandum of understanding with Crédit Agricole Consumer Finance, part of the Crédit Agricole Group—one of the largest banking groups in Europe—for the  supply of Fisker Ocean SUVs. The Fisker Ocean should deliver latest generation technology and performance to the bank’s employees, while reinforcing its commitment to a low-carbon fleet.

Shares of FSR have declined 8.7% over the past three months. However, in terms of forward P/B, FSR is currently trading at 4.83x, which is still 28.5% higher than the 3.76x industry average.

FSR’s loss from operations increased 1033.0% year-over-year to $31.31 million for the quarter ended December 31. The company reported a $12.04 million net loss over the same period. Analysts expect FSR’s loss per share for the current year to be $0.85, representing 112.5% year-over-year decline.

FSR’s POWR Ratings are consistent with this bleak outlook. The stock has an overall D rating, which translates to Sell in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

FSR is also rated a D in Stability, Value, and Sentiment. Within the B-rated Auto & Vehicle Manufacturers industry, it is ranked #42 of 53 stocks.

To see additional POWR Ratings for Momentum, Growth, and Quality for FSR, Click here.

Lordstown Motors Corp. (RIDE)

Founded in 2019, RIDE is an original equipment manufacturer of light duty fleet vehicles. It is a manufacturer of Endurance, an electric full-size pickup truck targeted for sale to fleet customers.

This month, RIDE introduced the SCORE San Felipe 250, a full-size EV pickup truck. The vehicle received a positive response and has generated extensive feedback. This successful market innovation should drive the company’s  growth in the coming years.

RIDE’s shares have declined 59.5% over the past three months. However, its forward EV/Sales of 12.84x is 644.8% higher than the 1.72x industry average. Its forward Price/Sales of 19.53x is 1290.7% higher than the 1.4x industry average.

In the fourth quarter ended December 31, RIDE’s loss from operations increased 441.3% year-over-over to $38.55 million. The company reported a $38.24 million net loss over the same period. Its net loss per share came in at $0.23 for the same period.

Analysts expect RIDE’s loss per share for the quarter ended March 31, 2021 to be $0.28, representing 53.8% year-over-year decline.

RIDE’s poor prospects are also apparent in its POWR Ratings. The stock has an overall rating of F, which equates to Strong Sell in our proprietary rating system.

The stock also has an F grade for Growth and Sentiment. Click here to see the additional POWR Ratings for RIDE. (Value, Momentum, Stability, and Quality).

RIDE is ranked #52 of 53 stocks in the same industry.

Click here to checkout our Electric Vehicle Industry Report for 2021


FSR shares rose $0.07 (+0.53%) in after-hours trading Friday. Year-to-date, FSR has declined -10.44%, versus a 11.98% rise in the benchmark S&P 500 index during the same period.


About the Author: Samiksha Agarwal


Samiksha Agarwal has always had a keen interest in financial markets. This has led her to a career as a financial journalist. Through her extensive knowledge of fundamental analysis, her goal is to help investors identify untapped investment opportunities in the stock market. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
FSRGet RatingGet RatingGet Rating
RIDEGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Investor Alert: Keep Calm and Carry On

The stock market (SPY) took a scary turn on Monday as news of Evergrande culminated in a worldwide sell off. Now with a little time and perspective investors see this was more smoke than actual fire creating a buy the dip event. Why did this happen? And where do stocks head next? Read on for those answers and more below...

:  |  News, Ratings, and Charts

2022 Stock Market Outlook

The stock market (SPY) has continued on a bullish path in 2021. Will that continue in 2022? And what could happen to awaken the bear market from hibernation? 40 year investment veteran Steve Reitmeister explores this and more in this early edition of his 2022 Stock Market Outlook. Read on for full details below...

:  |  News, Ratings, and Charts

3 Cheap Healthcare Stocks to Buy Right Now

Healthcare stocks saw renewed interest due to the onset of the pandemic, but It’s not only COVID that is driving returns. The Baby Boomer generation is getting older, which is resulting in increased demand for healthcare products and services. That’s why investors should consider adding undervalued healthcare stocks such as Ironwood Pharmaceuticals, Inc. (IRWD), Nu Skin Enterprises, Inc. (NUS), and Bristol-Myers Squibb Co. (BMY) to their portfolio.

:  |  News, Ratings, and Charts

3 Value Stocks to Buy While You Still Can

After outperforming from last fall into the spring, value stocks have been overtaken by growth stocks, but that is expected to change as the economic recovery continues. So, now is the time to start putting your money to work in undervalued companies that offer the potential for strong returns such as Gilead Sciences Inc. (GILD), HP Inc. (HPQ), and CNH Industrial N.V. (CNHI).

:  |  News, Ratings, and Charts

3 Cheap Healthcare Stocks to Buy Right Now

Healthcare stocks saw renewed interest due to the onset of the pandemic, but It’s not only COVID that is driving returns. The Baby Boomer generation is getting older, which is resulting in increased demand for healthcare products and services. That’s why investors should consider adding undervalued healthcare stocks such as Ironwood Pharmaceuticals, Inc. (IRWD), Nu Skin Enterprises, Inc. (NUS), and Bristol-Myers Squibb Co. (BMY) to their portfolio.

Read More Stories

More Fisker Inc. (FSR) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All FSR News