Henrik Fisker, CEO of electric vehicle manufacturer Fisker (NYSE:FSR), declared that his company has a “unique business model.” However, it’s not a proven business model yet. FSR stock looks risky in 2023 as Fisker’s ambitious goals don’t ensure financial or operational success in the U.S. or abroad.

Fisker’s “unique” business model involves getting the Ocean electric SUV approved and commercialized in both the U.S. and Europe. Apparently, Fisker is using an “atypical approach to adjust production and sales based on regional demand.”

The problem is, Fisker has to follow through with this approach and show that its business model isn’t only “unique,” but also profitable. That’s a tall order when the competition is relentless. Pricey luxury vehicles are a tough sell, and Fisker is a latecomer to the EV race.

Fisker Awaits U.S. Approval

While California-based Fisker hopes to make strides in Europe, the automaker also seeks to sell its vehicles in the U.S. However, as of this writing, Fisker’s progress in its home country is stalled. That’s because the company is still awaiting approval from environmental regulators.

Fisker is “pursuing an official Certificate of Conformity (CoC) with the Environmental Protection Agency (EPA) to validate the Fisker Ocean Extreme range.” So far, the EPA hasn’t provided a “firm date” for the CoC certification.

Investors might want to check Fisker’s news page for further updates on this. Even if Fisker gets CoC certification, it will take time to reach full commercialization of the Ocean EVs.

The company’s shareholders will have to be very patient. Plus, they’ll have to have faith that Fisker can sell its pricey EVs in the U.S. even while other automakers may be implementing price cuts.

FSR Stock Gets a Bump, but Is It Justified?

Frankly, Fisker’s financial situation isn’t ideal. Fisker has been consistently unprofitable. Wall Street’s experts expect the company will sustain an operating loss of around $200 million this year.

Yet, traders ignored these facts and bid up the FSR stock price after the company announced that European regulators approved the Ocean SUV for sale. Amazingly, the Fisker share price jumped from $5 to $6.50 in two trading sessions.

Remember, Fisker reportedly had built 56 EVs and delivered none of them to customers at the end of 2022. Now, suddenly some stock traders seemingly expect Fisker to engineer a successful venture into Europe.

When success has already been assumed and priced into a stock, this can be a setup for disappointment and disaster. Just because Fisker can legally sell EVs in Europe, doesn’t mean the Ocean SUV will be a best-seller. It looks like Fisker’s fans baked a lot of future success into FSR stock. Now, the profit-less automaker will have to deliver in spades, and that’s a tall order.

Don’t Be Hasty With FSR Stock

Fisker’s “unique” business model hinges on delivering outstanding results on two different continents. Yet, Fisker hasn’t yet proven itself in the U.S. or in Europe.

FSR stock may have gotten ahead of itself, and it’s susceptible to a pullback in the coming weeks and months. A hasty, assumption-driven investment in Fisker today could lead to substantial loss. Therefore, it’s wise for prospective investors to stay on the sidelines for the time being.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.