- Fisker shares slumped to an all-time low on the EV maker's results and production forecast, and the firm warned about problems with its financial reporting.
- Both the company's third quarter loss and revenue came in much lower than analysts' estimates.
- Fisker slashed its outlook for vehicle production for the third time this year.
Shares of Fisker (FSR) plunged to an all-time low after the electric vehicle (EV) maker posted weaker-than-expected results and slashed its production outlook again. The company also told regulators of "material weaknesses" in its quarterly report.
Fisker reported a third quarter fiscal 2023 loss of $0.27, missing forecasts. Revenue came in at $71.5 million, about half of analysts' estimates.
The company delivered 1,097 vehicles in the period, the first quarter of having what it called "meaningful automotive sales revenue." However, it built just 4,725, and cut its full-year production forecast for the third time this year. Fisker now expects its Austrian partner, Magna, to manufacture 13,000 to 17,000 EVs in 2023, down from its original estimate of 42,400. That was reduced to 32,000 to 36,000 in May, then to 20,000 to 23,000 in August.?
Just two months ago, Fisker had said it would ramp up deliveries.
The company explained the pullback in production was needed to make sure it doesn’t have too much inventory and to manage working capital. CFO Geeta Gupta-Fisker said it was essential to do that for the long-term health of the firm.
CEO Henrik Fisker suggested demand isn’t a problem, noting that the company hasn’t been able to make deliveries fast enough. He added that Fisker was hiring 20 to 30 people a week to help speed up the process. He also pointed out that the carmaker delivered 1,200 Oceans in October, and that hundreds more are en route to customers.?
The company said in a regulatory filing that following a changeover of CFOs earlier this month, it "determined that it has material weaknesses in the Company’s internal control over financial reporting."
Fisker went public in October 2020 and shares hit an all-time high in February 2021. They have since lost about 90% of their value.