Fisker Inc., often referred to as the Apple of autos, faces a significant setback as its shares plummeted by approximately 14% on Monday. This decline follows the company’s announcement of expanded third-quarter losses and sales that fell short of Wall Street’s expectations.
Despite the disappointing outcomes, Fisker maintained its forecast for 2023 operating expenses and capital expenditures, with estimates ranging between $565 million and $640 million. This news comes as the electric vehicle manufacturer reported a third-quarter loss of $91 million, or 27 cents per share, marking an improvement from last year’s loss of $149.3 million, or 49 cents per share. However, Fisker’s revenue did see an increase to $71.8 million from just $14,000 in the previous year and $825,000 in the second quarter.
While this revenue growth is notable, it fell short of analysts’ expectations, who anticipated a loss of 23 cents per share on sales of $143.1 million. In an effort to boost sales, Fisker announced price reductions for its Fisker Ocean model in the United States, Europe, and Canada, along with adjustments to trim pricing. The company also plans to optimize last-mile logistics and expand its delivery infrastructure to enhance scale effects in the fourth quarter.
During the third quarter, Fisker produced 4,725 vehicles and sold 1,097 units. They have also delivered over 3,000 vehicles globally, with more in transit to customers. However, these efforts come amidst industry challenges, including issues related to Tesla’s Cybertruck contract and ongoing losses in Plug Power’s stock value.
Despite the hurdles, Fisker remains committed to improving its financial performance and scaling up operations in the competitive electric vehicle market. However, potential investors should be aware of certain factors. Firstly, Fisker has been rapidly burning through cash and operates with a poor return on assets, which might be concerning. Additionally, the company’s stock performance has been underwhelming, with a significant price drop over the past year.
On the positive side, Fisker’s revenue growth has been impressive, as evidenced by the jump to $71.8 million from just $14,000 a year ago. However, it is essential to consider the company’s mixed financial performance, with revenue growth but also losses and poor stock performance. For more detailed insights and additional tips, investors can explore InvestingPro, which offers comprehensive overviews of companies’ financial health and future prospects.
