Why is Fisker Inc worth so much with so little to show? The electric car industry is rising on the wave of multiple bubbles at this very moment. If you start an electric car company you are entering an industry that will have a guaranteed future value worth trillions. It is this future value that has caught the attention of investors globally. Investors with large checkbooks essentially placing bets on an industry that is still in its early phase. The bubble is similar to all other bubbles that went before. The housing bubble, the dot.com bubble, the Bitcoin bubble. As we know all bubbles eventually burst.

But for now, the wave of optimism and potential future returns in the manufacturing and sales of electric vehicles is gathering momentum. And it will last for another decade at least because the future is written into law by governments across the world seeking a new green deal and a low emissions era of manufacturing and energy consumption.

And this is where Fisker Inc comes into view. It’s the fourth brainchild of Henrik Fisker, the automotive designer turned entrepreneur. He has had a fair few failures. His previous electric car company Fisker Automotive burned through $1.4 billion before it sank. The remnants were later acquired by a Chinese investor and currently exists in a zombie-like state.

But Fisker Inc is riding a wave of optimism. Elon Musk. It has private equity backing from some of the biggest and arguably most ruthless of venture capital firms. Fisker Inc is in talks to go ahead with a public listing on the stock markets and a pre-market valuation of $1.6 billion.

The Fisker Ocean is the only car produced thus far by the company. Just one vehicle, production will begin in 2022. So why is Fisker worth so much? In relative terms, it isn’t worth anything other than the investments it has already received from private equity.

Investments at this level are akin to a high stakes Crap game. It’s all one big gamble being played by a group of super-wealthy investors who hope to make a return in 10 years from now. Hope is not correct term to use. These investors have done their due diligence. But at the end of the day, they are still gambling.

Gambling on futures defines how one part of the stock market operates. The value placed on Fisker isn’t defined by reality, it’s defined by a group of super-elites. In the same way, a black-market determines the value of its currency and goods so too does the stock market.