The Stock of Fisker Falls 14% After the Ev Maker's Losses Widen and Its Revenue Falls Short of Expectations

In the after-hours session on Monday, Fisker Inc. witnessed a substantial decline of approximately 14% in its shares following the release of its quarterly results, which revealed a widened loss and sales figures below expectations. This underscored the challenges inherent in achieving profitability in the competitive electric vehicle (EV) industry.

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During the third quarter, Fisker reported a loss of $91 million, equivalent to 27 cents per share. In comparison, the year-ago period showed a loss of $149.3 million, or 49 cents per share. Despite the improved financials, the company's performance fell short of analyst predictions. Revenue did see a notable increase, reaching $71.8 million, compared to $14,000 a year ago and $825,000 in the second quarter.

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Analysts surveyed by FactSet had anticipated a narrower loss of 23 cents per share on higher sales of $143.1 million. Fisker's actual results indicated the ongoing challenges faced by EV manufacturers in achieving profitability and meeting market expectations.

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While Fisker maintained its guidance for 2023 operating expenses and capital expenditures within the range of $565 million to $640 million, it notably omitted information about gross margins. In August, the company had initially projected gross margins between 8% and 12% for the year, contingent on stable input costs. The removal of this margin information raised concerns among investors, signaling potential uncertainties regarding the company's cost structure and profitability outlook.

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Fisker emphasized that the third quarter marked its first period with substantial automotive sales revenue. Often referred to as the "Apple of autos," Fisker distinguishes itself by focusing on design and consumer interfaces while outsourcing the manufacturing of its vehicles.

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During the quarter, Fisker reported the production of 4,725 vehicles, with 1,097 units sold. The company highlighted that deliveries had gained momentum as it optimized last-mile logistics and expanded its delivery infrastructure to achieve scale effects in the fourth quarter and beyond. According to Fisker, over 3,000 vehicles have been delivered globally to date, with hundreds more on their way to consumers.

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In a strategic move on Monday, Fisker announced a reduction in the prices of its Fisker Ocean model in the U.S. This marked the first price adjustment since the introduction of trim pricing in 2020 and 2021. Additionally, Fisker revised pricing in Europe and Canada, narrowing the pricing gap between different trims. This pricing adjustment could be interpreted as a response to market dynamics and competitive pressures in the rapidly evolving EV landscape.

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In summary, Fisker's latest financial results and strategic decisions underscore the complex and competitive nature of the EV industry. Achieving profitability remains a significant challenge, and the market will likely closely monitor Fisker's future initiatives and performance as it navigates the dynamic landscape of electric vehicle manufacturing.