Fisker Inc., the California-based electric vehicle (EV) manufacturer, has revised its production estimates for the year, anticipating a range of 13,000 to 17,000 vehicles, down from the previous projection of 20,000 to 23,000. The company cites challenges in keeping up with deliveries as the primary reason for the adjustment, with CEO Henrik Fisker acknowledging customer frustrations due to delayed deliveries.
The Ocean, Fisker’s flagship model, is being delivered in 10 countries, including the United States and various European markets. However, the company has been unable to meet demand promptly, leading to discontent among customers. To address this issue, Fisker is expanding its logistics partnerships, leasing additional facilities, and hiring more staff in an effort to ramp up production at the contracted factory in Graz, Austria.
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The stock market reacted negatively to this news, with Fisker’s stock price falling 14 percent in after-market trading, reaching a 52-week low.
CFO Geeta Fisker, Henrik’s spouse, explained that the adjustment in the production forecast for 2023 is a strategic move to balance production and deliveries. She emphasized the need to enhance infrastructure to expedite the delivery process, acknowledging that U.S. customers might experience delays of up to eight weeks compared to their European counterparts.
Aside from production challenges, Fisker highlighted weaknesses in internal controls over financial reporting. The company had postponed its financial results, attributing the delay to the departure of its former chief accounting officer and subsequent issues in financial reporting controls.
Financially, Fisker reported a net loss of $91 million, missing analysts’ estimates. The company has also adjusted prices in response to the competitive dynamics of the EV market, with CEO Henrik Fisker noting a price war initiated by Tesla CEO Elon Musk. Despite the challenges, Fisker’s manufacturing partner, Magna International Inc.’s Magna Steyr unit, significantly increased production in the third quarter compared to the previous quarter.
Looking ahead, Fisker is in negotiations with Foxconn for a manufacturing deal at Foxconn’s Ohio plant. Additionally, the company plans to introduce two new vehicles, the Pear (an affordable subcompact crossover) and the Alaska (a midsize pickup), with Henrik Fisker expressing readiness to bring them to market pending capacity availability.
Source: Automotive News (subscription required)
