Over 40,000 Ocean EVs will be built in 2023, according to Fisker, which confirms deliveries will begin this spring

Fisker Motors, a startup that designs and manufactures electric vehicles, announced on Monday that it has spent less money in 2022 than expected and that it remains on track to start delivering its Ocean SUV this spring as well as to build more than 40,000 vehicles by 2023.

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In premarket trading, shares of the company were up by about 9% as a result of the news.

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Until now, 56 Oceans have been built at Magna International's contract manufacturing facility in Austria, which is Fisker's manufacturing partner. A total of 15 of these vehicles were completed before the end of the year and are now being tested for reliability by both Fisker and Magna, as the two companies refine the manufacturing process, test additional features, and work through regulatory approval processes in the U.S., Canada, and Europe.

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Lucid and Nikola, two EV startups, had underwhelming production and delivery results less than a week ago.

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It was originally expected that the Ocean would have a range of about 350 miles in its top trim, but Fisker's CEO, Henrik Fisker, said Monday that early tests have shown that the Ocean actually has a much longer range than was first anticipated.

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“We believe that these results confirm our expectations that, at the time of launch, the Fisker Ocean will have the longest range of any SUV/Crossover priced below $70,000, ” he continues.

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It is estimated that the Ocean has a range of approximately 250 miles in base trim and starts at $37,499; versions with longer ranges start at about $50,000.

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FISKER expects to complete the testing needed for regulatory approval of the Ocean by the end of the month and to ramp up production - and begin deliveries - by the end of the second quarter. There was no change in the company's previous production guidance - "up to" 42,400 vehicles in 2023 - "provided that the supply chain delivers as per our forecast and we receive [regulatory approval] as soon as possible. "

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There are "approximately 65,000" reservations for Fisker's Ocean as of Feb. 24, up slightly from "over 62,000" reservations as of the company's earnings report for its third quarter in early November. The Ocean will not qualify for the new EV incentives offered by the U.S. government because it will be built in Austria.

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There was a total spend of $702 million by Fisker in 2022, which is a bit below its guidance range of $715 million to $790 million. At the end of 2022, the company had $736.5 million in cash remaining, which included $57 million raised from the ongoing at-the-market share offering that took place in the fourth quarter of 2022. Currently, it is estimated that the company will spend between $535 million and $610 million on capital expenditures in 2023.

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The company is targeting a gross profit margin between 8% and 12% for the year and reported that it may also have positive earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year.

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Despite revenue of about $306,000 during the company's fourth quarter, Fisker's net loss for the quarter was $170.1 million, or 54 cents per share. It was a disappointing result for both businesses, as Wall Street analysts polled by Refinitv had predicted a loss of 42 cents per share on revenue of $2.5 million based upon a loss of 42 cents per share.

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Furthermore, Fisker said it has made progress on its next model, a lower-cost small EV called the Pear, which will be on the market in 2019.

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In early November, the company reported "over 5,000" reservations for the Pear, a significant increase over the "over 5,000" reservations that it had in early November. It is anticipated that Foxconn Technology Group, one of the world's largest car manufacturers, will build the Pear, which is expected to start at $29,900, in the former Lordstown Motors plant in Ohio from 2024 onwards.