Question about SPAC financing and impact on share price

Any takers? I know, I know, I sound like some troll short but I'm not. Quite the opposite and very bullish long term on FSR, just trying get a clear picture to possibly temper any crazy expectations. It's a question I've been trying to find an answer to for some months after reading details of the Polestar SPAC merger and its impact on potential share price, so thought I'd try here.

Wish I could answer your question but I don’t know the answer. However, have been reading a lot lately about how FSR looks good medium to long term ?

https://www.parktelegraph.com/2022/10/13/analysts-point-to-fisker-inc-nyse-fsr-growth-in-the-future/#

Thanks. It's not an easy question to answer I agree. Anyhow, it's not changing my thinking in terms of investing. And frankly I'm much more excited about the Pear as a serious catalyst (you know to those three digit share price levels) and maybe I'll write something about that.

Look at slide 31 of the original investor presentation:

https://www.sec.gov/Archives/edgar/data/1720990/000121390020017291/ea124083ex99-3_spartanenergy.htm

@takis I have been hesitant to respond as not a financial expert and knowledge is just from personal research.  Having said that, I can answer some of the history.  SPAC mergers are definitely different than IPOs, however, once they are both public, there is not really any difference to the general public investors (aka "us nobodies").  The SPAC does dilute the original shareholders, but again, this happened in the past and does not affect future performance.

As far as ownership; the two largest shareholders for FSR are Henrik & Geeta Fisker.  Each own approx. 22.15% (for total of 44.3%).  Outside of the Fiskers, insiders only own about 1%.  Apollo Global Management sponsored the SPAC for Fisker; they currently own approx. 5% of FSR.  The bulk of the remaining shares are owned by Institutions (27.1%) or General Public (22.1%).  Magna can acquire up to 6% ownership in FSR currently held as warrants which expire October 2030 (strike price is $0.01 so safe to assume they will exercise at some point).

For comparison, Musk owns approx. 14.84% of Tesla (and has been decreasing his share).  Other insiders own another 1.5%.  The bulk of the rest is Institutions (43.8%) or General Public (39.8%).  Vanguard and BlackRock are the two largest institutional shareholders for both companies.  The ratio of Institutions vs General Public is fairly close for both companies (not sure that really means anything).

The biggest difference in margins between TSLA & FSR going forward would be how they operate.  TSLA owns their own manufacturing facilities while FSR is operating on an "Asset Light" model having third party entities manufacturing their vehicles.  The Asset Light model reduces capital strain (and debt) on FSR and allows for more flexibility to increase (or decrease) production, however, their automotive gross margins will be smaller than Tesla's.  In addition, Tesla also has other sources of revenue (solar; battery storage; superchargers) while Fisker is only involved in automobile sales.  As FSR grows; they may decide to enter other segments or build their own factories but for now they are only focused on getting the Ocean out and then expanding to the PEAR/Ronin plus 1-2 more models.

Thanks Sean. That's pretty much what I was looking for. For comparison, Polestar shareholders own (from what I recall) maybe 20 percent of the company, so this is much more reassuring! And @ttrinchi thank you!

Posted by: @takis

Thanks Sean. That's pretty much what I was looking for. For comparison, Polestar shareholders own (from what I recall) maybe 20 percent of the company, so this is much more reassuring! And @ttrinchi thank you!

Polestar public shares are 5.9% of company (June this year post SPAC Merger). Li Shufu (Zhejiang Geely Holding Group) owns the rest more or less. Volvo Cars owns 49.5% (Mr. Li owns 82% of Volvo) and Geely owns the rest (plus some direct holdings by Mr. Li and associate businesses). Round numbers, direct public shareholders = 6%, Li Shufu 86%, other Volvo shareholders 8%. 

@ttrinchi Thanks, great info ?