Fisker, the renowned electric vehicle manufacturer, recently released its Q3 financial report, revealing disappointing results in terms of both losses and deliveries. The company reported a significant loss during this period, which undoubtedly poses challenges for its future growth and profitability.
Delivery Performance
Fisker, the electric vehicle startup, announced its third-quarter results on Monday, revealing a wider loss than anticipated by Wall Street. The company reported delivering approximately 1,100 units of its Ocean electric SUV during the third quarter, falling short of expectations. However, Fisker stated that deliveries have since gained momentum, with over 1,200 Oceans delivered in October and several hundred more currently en route to customers.Following this news, Fisker's shares experienced a decline of more than 10% in after-hours trading.
Production Performance
The company disclosed that it, along with its manufacturing partner Magna International, manufactured 4,725 units of the Ocean in the third quarter, delivering 1,097 to customers. In comparison, Fisker produced 1,022 Oceans in the previous quarter of 2023.
CEO Henrik Fisker expressed confidence in the company's ability to scale up its delivery infrastructure to accommodate higher volumes. He stated, "We are rapidly scaling our delivery infrastructure to support even higher volumes of deliveries of our class-leading product to our loyal customers. We are gaining momentum and delivered more units in the month of October than in all of the third quarter."
In a statement released on September 26, Fisker had previously projected that it would be delivering 300 Oceans per day before the end of this year. However, the company did not provide an updated production guidance for the full year in its recent announcement.
Financial Performance
Fisker's third-quarter earnings report revealed a net loss of $91 million, or 27 cents per share, surpassing the expected loss of 19 cents per share predicted by Wall Street analysts. The company reported revenue of $71.8 million for the period, falling short of the projected $109 million. It is important to note that CNBC cannot compare reported revenue to projections due to limited analyst coverage.
Comparing the current results to a year ago, Fisker's net loss for the third quarter has improved from $149.3 million to $91 million. The company's revenue has also experienced significant growth, rising from approximately $14,000 to $71.8 million.
Cash and Cash Equivalents
As of September 30, Fisker had $625 million in cash and cash equivalents, an increase from $521.8 million as of June 30. The company raised an additional $300 million through a convertible note offering in July and secured an additional $150 million in September.
Fisker did not provide an immediate update on its production guidance for the full year. In August, the company had projected that Magna would manufacture between 20,000 and 23,000 Oceans at its contract manufacturing plant in Austria by the end of this year.
Executive Departures
The release of Fisker's third-quarter results was initially scheduled for last week but was abruptly postponed. The company cited the departure of its chief accounting officer on October 27 and the appointment of a new officer on November 6 as reasons for the delay in completing the financial statements and related disclosures. The specific reasons behind the departure of Fisker's chief accounting officer were not disclosed.
Furthermore, Fisker experienced another executive departure in late October when its chief technology officer, Burkhard Huhnke, left the company due to "personal reasons," according to regulatory filings. David King, a senior engineer who previously led Fisker's vehicle-body engineering team, assumed the role of chief technology officer on November 3.
Summary
Looking ahead, Fisker aims to navigate these recent challenges and continue its growth trajectory in the electric vehicle market. With a focus on scaling up its delivery infrastructure and increasing production volumes, Fisker strives to meet customer demand and solidify its position as a leader in the industry.
(This article is sourced from cnbc.com and curated by Thetransporteronline24)
