Fisker, an electric vehicle manufacturer, reduces production forecast due to supply chain issues, causing a decline in shares.

Fisker, an electric vehicle manufacturer, reduces production forecast due to supply chain issues, causing a decline in shares.

Fisker Inc Faces Setbacks but Shows Promise in Electric Vehicle Market

Fisker Logo

In the fast-paced world of electric vehicles, companies are constantly navigating challenges and striving for success. Fisker Inc (FSR.N), a prominent player in the market, recently faced setbacks that impacted its stock price. Despite this, Fisker’s quarterly results show promise for the future.

Fisker Inc fell nearly 9% on Friday as supply chain issues forced a cut in its annual production target. The company now expects to produce between 20,000 and 23,000 vehicles in 2023, down from the previously projected range of 32,000 to 36,000 units. The main reason for this adjustment is a key supplier needing more time to increase capacity.

However, it’s not all bad news for Fisker. The company reported its first revenue from sales, marking a significant milestone. Fisker delivered its electric sport utility vehicles (SUVs) in Europe and the United States, generating $825,000 in revenue in the second quarter. This achievement showcases the demand and potential for Fisker’s electric SUVs.

While the quarterly loss totaled 25 cents per share, it was smaller than analysts’ expectations of a loss of 28 cents. This positive surprise indicates that Fisker is making progress towards profitability. In fact, analysts anticipate the company to record an operating profit in the fourth quarter, according to Refinitiv data.

Despite these promising developments, Fisker faces some unique challenges. The electric SUVs produced by Fisker’s Austrian unit, which is part of Canadian auto parts maker Magna International (MG.TO), do not qualify for the $7,500 federal tax credit in the United States. This exclusion may impact sales in the US market.

Additionally, Fisker is not the only electric vehicle startup grappling with supply chain issues. Over the past year, numerous companies in the industry have faced similar challenges. Industry suppliers typically prioritize larger electric vehicle manufacturers with proven production capacity and demand, leaving startups like Fisker with limited options.

Another electric vehicle startup, Nikola (NKLA.O), also confronted setbacks recently. The company’s stock price plummeted by 13% after announcing its fourth CEO in as many years. Nikola is grappling with depleting cash reserves, supply chain constraints, and a shift towards hydrogen fuel cell technology. These challenges highlight the complexities of operating in the electric vehicle market.

Fisker’s struggles with supply chain issues and a reduced production target may have dampened investor enthusiasm temporarily, but the company’s first revenue from sales and the smaller-than-expected quarterly loss demonstrate progress and potential. Fisker Inc, along with other electric vehicle startups, continues to adapt and refine their strategies in a rapidly evolving industry.

Key Points:

  • Fisker Inc experienced a decline in stock price due to supply chain issues and a reduced production target.
  • Fisker generated $825,000 in revenue from the delivery of its electric SUVs in the second quarter.
  • The quarterly loss of 25 cents per share was smaller than analysts’ expectations.
  • Analysts predict Fisker will achieve an operating profit in the fourth quarter.
  • Fisker’s electric SUVs produced by Magna International’s Austrian unit are not eligible for the $7,500 federal tax credit in the United States.
  • Fisker, like other electric vehicle startups, faces supply chain challenges as industry suppliers prioritize larger manufacturers.
  • Nikola, another electric vehicle startup, also encountered setbacks, including changing CEOs and a shift to hydrogen fuel cell technology.

China’s importance to German exporter...
Canada’s job losses in July were unex...
US jobs growth remains moderate in July, wi...
Nikola’s stock drops after appointing...
Icahn’s firm reduces dividend by 50% ...
Lanxess seeks government support for chemic...
Reviews

Reviews