Fisker Inc, the electric vehicle (EV) manufacturer, experienced a smaller-than-expected quarterly loss thanks to revenue generated from its electric SUVs. The positive performance helped offset the company’s decision to slash annual production projections due to production cuts and supplier delays. As a result, Fisker’s shares rose over 2% in premarket trading.
The company now anticipates producing between 20,000 and 23,000 vehicles in 2023, down from the previously projected 32,000 to 36,000 units announced in May. Fisker cited a key supplier’s need for additional time to meet production demands as the main reason for the reduction. In the second quarter, Fisker fell short of its production target of 1,400 to 1,700 Ocean SUVs by manufacturing only 1,022 units due to component shortages. This issue is not unique to Fisker, as many EV startups struggle with supply chain disruptions, with component providers prioritizing larger EV manufacturers with proven production capacity and demand.
Nevertheless, Fisker achieved a milestone by recording its first quarterly revenue from sales. The company began delivering its electric SUVs in Europe and the United States, resulting in $825,000 in revenue for the second quarter. However, the Austrian division of Canadian auto parts manufacturer, Magna International, produces Fisker’s sports utility vehicle, disqualifying it from the $7,500 federal tax credit available for EVs in the United States.
Fisker reported a loss of 25 cents per share, exceeding analysts’ expectations for a loss of 28 cents. Refinitiv data suggests that analysts anticipate the company to achieve an operating profit in the fourth quarter.
Going forward, Fisker is determined to overcome the challenges posed by production cuts and supplier delays. The company remains focused on expanding its production capabilities and fulfilling the growing demand for electric SUVs. By adapting its strategies and addressing supply chain issues, Fisker aims to position itself as a major player in the rapidly evolving EV market.
In conclusion, Fisker Inc’s revenue from electric SUV sales helped mitigate their quarterly loss, despite facing production cuts and supplier delays. The company remains optimistic about its future prospects and expects to achieve profitability in the coming months. Through continued efforts to improve production efficiency and address supply chain challenges, Fisker strives to establish a strong presence in the competitive EV industry.
