EV maker Fisker (FSR) has seen a recent surge in its share price amid plans to boost sales and deliveries in January. The company delivered more than 4,700 EVs in the final three months of 2023, up more than 300% from the third quarter, and it delivered its first Fisker Ocean Sport model. All might not be clear for Fisker, however, with ongoing production challenges and heavy competition in the industry, namely, Tesla (TSLA).

Yahoo Finance's Brian Sozzi and Brad Smith report on this story and weigh in the cost and value of the company's stock.

Video Transcript

BRIAN SOZZI: Fisker shares surging this morning. The EV maker announcing it plans on accelerating sales and deliveries in January. The company increasing the number of test drive events in both the US and Europe. Fisker delivered a total of about 4,700 EVs, which is more than 300% increase from the third quarter to the fourth quarter.

And look, Brad, this stock has been absolutely hammered. Sure, some good news into year end for Fisker, but this is an under $2 stock right now. And it's under $2 for a reason. They have had production problems. They've had, I would say, demand problems despite what this press release is saying today. And, oh, yeah, Fisker is going up against a giant beast-- beast, I should say in Tesla, Ford, General Motors, Toyota, you name it.

BRAD SMITH: Yeah, absolutely. I mean, you take a look at the shares. This was a company that went public via SPAC, so ultimately as part of that de-SPAC process, you saw them come public at what was the common price usually for the SPAC of $10 that was put forward.

But even after Fisker went public, struggling to get back to or even maintain anywhere near that ether of that $10 price, which is really just kind of a placeholder before the de-SPAC. It's been a-- I think for this week, a loud quiet week for Fisker. It's a quiet week in the markets. Not a ton of news coming out. Fisker trying to make waves. Talking about the first ocean sport delivery that happened. They also revamped their loyalty program.

And then you get this business update today, which sends shares higher, but then again, as you were mentioning on what base? The base right now so low that you see a jump like this take place and it's still a larger question of how do they continue to take share when production is still one of the larger concerns that investors have to think about at this time.

BRIAN SOZZI: This is a stock, Brad, Yahoo Finance community loves. Why? Because it's under $2. They view it as cheap. But another investing lesson for today is just because the stock is under $5 doesn't make it cheap, as you can see in that fiscal chart right there. The key question you have to ask yourself, if you're stepping in here and you're thinking this talk is cheap and you're buying Fisker, well, how does it get back to $5? How does it get to $10.