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Is FSR Stock a Solid Long-Term Investment?

stock market

When you're trying to find a long-term stock option that you can purchase, it's always a good idea to look at companies that are making waves. Clearly, you want to choose something that is more than likely going to perform well in the future and that often means choosing something that's either new or is doing business in a new way. That leaves a lot of people to look at stocks that come from companies who are looking toward the future. Fisker is one of the companies that people often think about. The electric vehicle manufacturer has been getting a lot of attention recently because they are focused on an industry that is almost guaranteed to grow exponentially in the near future. Traded as FSKR on the stock market, a lot of investors have been wondering whether or not they should add this stock as a long-term investment. If you are one of them, here are some reasons why you might consider doing so along with a few reasons why it might be a good idea to wait it out.

Company History

In order to understand what the company is all about, you have to first Look at its history. That means finding out how long they've been in business and what type of success or failure they've experienced so far. The interesting thing here is that they haven't been in business that long, but they're not exactly a brand new company, either. In fact, they've been in business since 2016. That makes some potential investors nervous because that's only five years. At the same time, other people feel like it's just long enough to prove that they have staying power while also allowing the company to be young enough to demonstrate that they're open-minded and can do things differently. It's also worth noting that so far, the company has produced a vehicle called the Karma, one that was fairly successful. Right now, they're producing one called the Ocean and they continue to create innovative ideas in the electric vehicle market. The thing they don't get involved with is vehicles that operate with traditional internal combustion engines. Everything they do involves all electric vehicles and components that are required to help those vehicles continue to operate in the long-term. Obviously, the market for such a company isn't as big as that associated with companies like Ford or Chevrolet, but it does very much seem to be the wave of the future. It's also worth noting that you can currently purchase their stock for roughly $16 per share, meaning that you could theoretically purchase a number of shares and then wait for the stock to go up in order to cash out for a rather big payday. It should also be worth noting that most recently, their stock was up slightly, with a 0.63% gain.

Patience Is Key

One thing that you have to understand with this particular stock is that it isn't likely that they're going to have a dramatic increase in the value of their stock within the next few weeks. It simply isn't in the nature of the market itself. When you stop and think about the type of business that this company is involved in, you have to understand that you may have to wait for a significant amount of time in order to see any real return on your investment. It isn't like the market for all electric vehicles is suddenly going to take off and become so immensely popular that people are waiting in line in order to get their hands on one of these cars. That's especially true when you consider the fact that the electric vehicle market hasn't exactly taken off in recent years. Some of these companies, like this one, have been around for a few years, but the market has been overwhelmingly slow to get people to warm up to the idea of electric vehicles. There are several reasons for this. First and foremost, all electric vehicles have traditionally been significantly more expensive to purchase than those with traditional internal combustion engines. Furthermore, they haven't always had the range or the performance that people are looking for, although that has definitely changed in the last couple of years. Last but certainly not least, these vehicles often take an exceptionally long time to charge and it can be almost impossible to find a charging station unless you live in a major metropolitan area in one of the more progressive states throughout the country. That significantly limits the number of individuals who might consider purchasing an all electric vehicle at this particular point in time. However, everything is moving in this direction, albeit rather slowly. Therefore, there is every chance that this stock will go up exponentially in the coming years. The key word here is years, not months. If you're looking for something that you can use as a long-term investment where you can cash out within one or two years time, it's probably best for you to leave this one alone and look at something else entirely.

Waiting it Out

On the other hand, you may be able to enjoy a payday like nothing you've ever seen before if you're willing to wait it out. That means that this might potentially work if you're using it for an especially long-term investment, meaning that you plan on keeping the stock for the next five years or longer. Think of it this way. When everyone got from place to place with a horse and carriage, no one could have imagined how the automobile would transform society. Imagine what people could have made in the stock market if they had only realized that fact at the time and invested in Ford stock when the cost was next to nothing to do so. This is not really all that different, especially when you consider the fact that at the moment, the stock costs less than $20 for you to make a purchase. It may not seem like the best decision in the world to purchase this particular stock today, but in five years time you may be kicking yourself if you don't make the decision to do exactly that. There is no doubt that the future of personal transportation involves all electric vehicles. As a matter of fact, most countries are putting regulations in place that will essentially ban all new vehicles with internal combustion engines within the next decade. As a result, electric vehicles will become the standard. That means that you might be getting in this type of investment at a time when it's more than affordable to do so, yet you could potentially cash in on a major payday when you decide to sell the stock later on. Of course, there is some risk involved, but there is risk involved with everything in the stock market. The truth of the matter is that this almost seems like more of a sure thing than a lot of other potential investments that are out there, largely because you know that there will be at least some companies who developed all electric vehicles that will be experiencing a high level of success in the future. That will lead you to ask the question of whether or not you believe that this particular company has the potential to be successful or they will eventually lose that ability and be overtaken by someone else who is better able to do the job.

Predictions Galore

It's worth noting that the price involved to purchase this stock hasn't changed more than a few cents since they started being traded publicly. As a matter of fact, the same stuff that started out selling for just over $15 a share is still selling for just over $16 a share. At the same time, virtually every individual who considers themselves an established expert in the stock market feels like there is a possibility that this particular stock could go up significantly over the course of the next five years. That is the key component that you have to consider. Almost every individual believes that the stock is going to go up. Of course, any stock market expert is going to tell you that this stock will undoubtedly have the same issues that every other stock has where it will go up and down. In fact, there will be a certain amount of fluctuation that is impossible to avoid. It's the nature of the stock market itself. That said, virtually every prediction shows the stock continuing to increase in overall value. In fact, some experts believe that it could potentially increase as much as 10 times its current value within the next five years. When you think of it like that, the idea of purchasing the stock suddenly becomes a lot more appealing. If you can make 10 times what you're currently spending, it would be almost silly not to invest in the stock as a long-term option, even if that does mean that you have to hold on to it for five years in order to do so.

Doing Business for the Long-Term

Another reason that a lot of stock market experts believe that this company can be successful in the long term is that they have a management team that is virtually second to none. In fact, their team has a wealth of experience that allows them to potentially experience levels of success where other companies in the same market would falter. After all, they have seen what makes the market tick and they've seen other companies in the same sector come and go because they made critical mistakes at a time where it simply wasn't possible for them to make those mistakes and then successfully recover from them. As a result, it's imperative that this be taken into account when deciding whether or not this is a good option for a long-term stock. At the end of the day, you have to assume that this company's management team means that they have staying power and that they're likely to be around in five or even 10 years time. This brings you back to the information contained in the previous paragraph and the potential to purchase a single share of stock and then make 10 times your purchase price back within the next five years. Is there a potential that the stock may not pan out that way and you might not make as much money? Of course there is. That said, there's also a possibility that you might make even more. Considering the fairly low purchase price of the stock and its potential for growth, it seems to be like a more stable option than a lot of others that are currently available.

When it's all said and done, no one can tell you what you should be buying. You can gather all the information that you can possibly get your hands on, but it's up to you to make the decision regarding whether or not you're going to purchase a particular stock. The goal with long-term stock options is to choose something that doesn't cost you an arm and a leg today, yet offers a real potential to make a significant amount of money later on. There is no doubt that this stock fits that criteria. If you're touchy about the risk involved, it's worth noting there is risk involved in purchasing any stock because there is never a guarantee that it's actually going to go the way that you think it will. While there is risk and there always will be, there's a better than average chance that this could generate a significant payday for you at some point in the future. It isn't something that's going to pay off right away and there's virtually no question about that fact. That said, there is a real chance that it could potentially generate a great deal of money later on. If you think it's worth the risk and you can afford to wait, there's really no reason not to invest in the stock right now and see what happens.

Allen Lee

Written by Allen Lee

Allen Lee is a Toronto-based freelance writer who studied business in school but has since turned to other pursuits. He spends more time than is perhaps wise with his eyes fixed on a screen either reading history books, keeping up with international news, or playing the latest releases on the Steam platform, which serve as the subject matter for much of his writing output. Currently, Lee is practicing the smidgen of Chinese that he picked up while visiting the Chinese mainland in hopes of someday being able to read certain historical texts in their original language.

Read more posts by Allen Lee

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