California-based electric automaker Fisker saw its shares plummet 14% yesterday after reporting big losses and lower sales than expected. Now the American startup expects to slash its production forecast for this year by as much as 30% of initial expectations.
In the third quarter, Fisker lost $91 million, or 27 cents a share, according to MarketWatch. The company said it produced 4,725 Oceans – its only model to date – and sold 1,097 in the quarter.
According to Reuters, Fisker cut its 2023 production guidance “as it struggles to ramp up deliveries and flagged weakness in internal controls over financial reporting.” While production forecasts were slashed prior this year due to supply chain issues, this time around the problems stem from Fisker’s internal issues. “We have not been able to follow through with deliveries fast enough,” said Fisker CEO Henrik Fisker. “People have paid and are waiting for their cars, and some of them are really getting annoyed.”
Fisker says it now expects to produce 13,000 to 17,000 Oceans this year, cut back from the original projection of 20,000 to 23,000 EVs. Until this May, Fisker expected to produce 42,400 EVs this year before dropping it forecast to 32,000 to 36,000 – if the company hits the lower threshold of 13,000 vehicles, that would reach only 30% of its original production expectations. Still, the goal is to not sit on too much inventory while deliveries are delayed and “to better manage working capital,” according to Reuters.
“This may be short-term pain and it may not be something that Wall Street wants to hear but it is extremely responsible for us, and it is essential for us that we do this for the long term,” CFO Geeta Fisker said on a post-earnings conference call.
In response to Tesla’s price slashing, Fisker reduced the price of its luxury Ocean Extreme SUV by $7,500, from $68,999 to $61,499 just last month.
Fisker, which is hiring 20 to 30 new employees a week, opened a retail “lounge” location this week in New York City’s Meatpacking District, its first location on the East Coast and second US location after its flagship LA location. Fisker has additional lounge location in London and Munich, and one is expected to open in Shanghai in January 2024.
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