The Market’s Cycle of Silliness

The loose money that flowed during the SPAC boom gave fledgling companies like Los Angeles–based Fisker a chance to get their electric cars out into the world. Promising investors new, cost-efficient ways of building sustainable SUVs, Fisker topped out at an $8 billion market cap in early 2021, before it had even produced a car.

While the SPAC exuberance has long since faded, the fallout is still important to track. Fisker finally started delivering cars to customers this past summer, but it has been behind schedule and over budget. Lots of customers have buyer’s remorse, our story today details. Fisker’s market cap is down to $550 million. One car buyer who talked to my colleagues Maria Heeter and Michael Roddan not only wants the deposit on his car back but also lost $90,000 on his investment in Fisker’s stock.