Fisker (NYSE:RSF) made a big announcement on December 20. While the news probably doesn’t do anything for FSR stocks, I think it’s cool.
According to his Press release:
“Fisker will be launching exclusive digital art NFTs of original pen-on-paper sketches by the hand of founder and chief designer Henrik Fisker,” said its Dec. 20 press release.
“As part of Fisker by Hand’s very first NFT sale: OCEAN Concept Collection, Fisker is donating 50% of primary sales to non-profit organizations supporting corporate ESG principles. For the inaugural release, a total of 100 NFT Fisker by Hand: OCEAN Concept Collection are available for purchase.
Some of Fisker’s NFTs (non-fungible tokens) are likely to be Following worth that FSR stock if the company’s next electric vehicle, the Fisker Ocean, breaks down. This means that NFTs could make investors more money in the long run than buying the shares of the startup.
Although I think Henrik Fisker second crack in building an auto business will be more successful than the first one, I think the question I raised in the title is correct.
Why not buy FSR shares and a Fisker NFT?
If you are like me and believe that Fisker stock is a long-term speculative buying, I don’t see why you wouldn’t have bid on one of Henrik Fisker’s sketches auctioned on December 22.
However, it looks like NFTs weren’t nearly as successful as I thought they would be with Fisker enthusiasts. According to the FTX website, the highest bid was 8.00 Solana (CCC:LEFT-USD), the equivalent of $ 1,400. It was for the Ocean One, of which only one was made. In total, it appears that $ 6,877 was generated from the 100 NFT auction.
Considering the popularity of NFT auctions combined with the fact that 50% of the money goes to charity, I was convinced that there would be more interest in Henrik Fisker’s hand-drawn sketches.
I guess any current FSR stock owners who have also ordered an Ocean would not be averse to bidding for any of Henrik’s NFTs. However, only those with a bottomless pit of money will bid for the single copy.
It turns out that I was extremely optimistic about the success of the auction.
The best and worst case scenario
In my mind, it made sense to hedge your FSR stock bet with one of the NFTs.
For example, let’s say you own 600 shares of Fisker. It would be an investment of around $ 10,000 if you bought it in the last few days. However, if you bought 600 shares through the SPAC that Fisker merged with – Spartan energy – it was an investment of $ 6,000 or $ 8,300, depending on whether you exercised the 200 whole warrants that came up with the actions of PSPC.
Let’s also say you bought the Ocean One, which won an 8 Solana bid, or $ 1,400.
In the best-case scenario, Fisker becomes a home hit and FSR stock skyrockets to $ 100 by 2023 thanks to solid production figures. At the same time, the $ 1,400 raffle you bought is worth $ 10,000 in 2023 due to the success of the automaker.
It’s a win / win.
The worst-case scenario is that Fisker will go extinct by 2023, going into the trash of automotive history, knocking Fisker’s shares down to $ 0. At the same time, collectors decide that Henrik Fisker’s designs are worthless. Their value drops to $ 140 or 10% of what you paid.
What is an additional loss of $ 1,260 when you invest between $ 6,000 and $ 9,786 in Fisker shares?
The bottom line
If you believe Henrik Fisker’s vision, I don’t think it’s a question of either. Instead, I believe the smart game was to buy a sketch of Fisker at his auction to go with your FSR stock.
Although speculative, I think a bet on Henrik Fisker ultimately wins.
As of publication date, Will Ashworth did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publication guidelines.
Will Ashworth has been writing about investing full time since 2008. His publications include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger and several others in the United States and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.