Motley Fool: Fisker: Could This Heavily Shorted Stock Skyrocket?

New article from this morning from the Motley Fool. Here is the author's conclusion of the article.

Fisker has successfully built a scalable electric vehicle company. And that is no small feat. Nevertheless, there are good reasons why the stock is so heavily shorted right now. As the automaker expands its operations, investors should expect cash burn to balloon dramatically, creating the need for external financing like high-interest debt (which increases the possibility of bankruptcy) or equity dilution, which erodes current shareholders' claims to future earnings and cash flow.

While Fisker may be able to navigate these near-term headwinds, the future is far from guaranteed. Investors may want to wait on a few more quarters of data before taking a long-term position in the company.

https://www.fool.com/investing/2023/02/18/fisker-could-this-heavily-shorted-stock-skyrocket/