In recent days, volatility in electric vehicle (EV) stocks has ratcheted up once again. Established and early-stage names alike have sold off. Fisker (NYSE:FSR) is no exception. Already moving lower, this latest, much sharper drop has pushed FSR stock back to around $11 per share.

Now, this isn’t the first time this former special purpose acquisition company (SPAC) has fallen back to its initial offering price. In fact, it happened several times last year, quickly followed up by a big spike higher. Of course, there’s no guarantee that will be the case this go-around.

Numerous factors are making investors more cautious about growth plays at the moment. We’ve seen this happen with tech stocks, and now it’s happening with EV stocks. This points to it not being a great opportunity for more risk-averse investors. It’ll likely continue to be volatile. That will be the case too down the road, when it starts to make deliveries of its first major vehicle, the Ocean, which is an all-electric SUV.

But if you’re bullish on the EV trend, and are looking to add positions to your portfolio after the sell off? You may want to consider this stock. It’s possible the market is underestimating its chances of grabbing a decent share of the mass affluent EV market.

The Latest With FSR Stock

The cause of Fisker’s latest plunge in price is pretty cut-and-dry. Investors have again soured on EV plays, concerned that the sector became too hot, too fast. Yet beyond its recent price performance, the company continues to plug along. It continues to make progress with bringing out its aforementioned Ocean model, scheduled to start production later this year.

As I discussed in my last article on FSR stock, the company unveiled its flagship model at the L.A. Auto Show in November. Since then, there hasn’t been too much “big news” out of the company. We’re still waiting on the next major update.

This will, however, likely arrive when Fisker next reports quarterly results. That’s scheduled to occur on Feb. 16. At that point, the market will have information to work with in order to assess whether its roughly 40% drop over the past two months was an overreaction.

Then again, you may not have to wait until earnings to decide whether to make this a buy or not. Again, it’s possible that, with its considerable price decline, shares have gone from “priced for perfection,” as they say, to “priced for disappointment.” This is on top of what was already muted enthusiasm for this EV play, compared to some of the “hotter” ones out there.

Don’t Discount Fisker’s Chances

With so many automakers, whether incumbent or EV-only, entering this space, it may seem like FSR stock is a risky wager. I won’t say that it isn’t, as there’s no guarantee that its vehicle will become a commercial success.

Still, many may be too cautious about this particular EV play, simply because of the fact this is the second time there’s been an attempt to roll out a Fisker-branded electric vehicle. Some of you may recall, early last decade, an EV startup mostly unrelated to this one (both were founded by Henrik Fisker), but operated under the same name, wound up in bankruptcy.

However, what happened to the “old” Fisker has no bearing on the new one. Comparing the two is a bit like comparing apples to oranges. Whereas the first one was attempting to build a brand at a time when EVs were in their infancy, this new endeavor is tapping into an increasingly mainstream market. Today, EV sales continue to grow at a rapid pace. The industry’s prospects are bright, and opportunity is ample.

More importantly, this “new” Fisker is taking an interesting (and perhaps smart) approach to scaling up its operations. Instead of bearing the high costs/high risk of building its own infrastructure, it’s partnering with an existing automotive giant to provide it. Sure, this may come at the cost of gross margins. Yet this approach could in hindsight pay off.

The Takeaway With FSR Stock

Earning a “B” rating in my Portfolio Grader, I wouldn’t consider Fisker another Tesla (NASDAQ:TSLA) in the making. A name like Lucid (NASDAQ:LCID) better fits the role of a possible “Tesla killer,” although it’s too early to say. Upside with this EV play, though, doesn’t hinge on it becoming a top dog in this space. Even a moderate level of success may be enough to send it back toward its past all-time high ($31.96 per share).

I would dive deeper into the company, its soon-to-be-built Ocean vehicles, and of course, its technology. But if you’re still confident that EV stocks will recover, and still have plenty of room to run, I would include FSR stock on a list of names to keep an eye on.

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.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.