LOS ANGELES - Fisker Inc. (NYSE: NYSE:FSR), an American electric vehicle manufacturer, has reported significant dealer interest in its newly announced Dealership Partner model. Over 100 dealerships across the United States, Canada, and Europe have shown interest in the partnership. The company is set to host a dealer event at its headquarters during the upcoming week.
The company aims to sell all its remaining 2023 vehicle inventory by the end of the first quarter and plans to provide a delivery update in February. Fisker expects the sale of these vehicles to contribute positively to its cash flow, as it anticipates a release of nearly $290M in working capital from its balance sheet.
Fisker has also made an amendment to its 2025 senior convertible notes, which has reduced its outstanding debt by $185.5M and freed up intellectual property for potential strategic collaborations.
The company recently held its largest meetup to date, with around 2,500 owners and prospective owners across the U.S. and Europe.
This information is based on a recent press release statement from Fisker Inc.
InvestingPro Insights
In the context of Fisker Inc.'s recent dealership interest and strategic financial maneuvers, real-time data from InvestingPro provides a deeper look into the company's financial health. As of the last twelve months leading up to Q3 2023, Fisker's market capitalization stands at $471.65M, reflecting the size of the company in the marketplace. Despite the company's efforts to improve cash flow and reduce debt, it operates with a significant debt burden and is quickly burning through cash, as indicated by a gross profit margin of -44.55% and an operating income margin of -672.45%. This raises concerns about the company's ability to make interest payments on its debt.
InvestingPro Tips suggest that analysts anticipate sales growth in the current year, which could provide a positive outlook for Fisker's revenue stream. However, they also note that the company is not expected to be profitable this year, with a P/E ratio of -0.65 and an adjusted P/E ratio of -1.02, which can be a red flag for investors looking for earnings stability. The stock has also experienced significant volatility, with a price total return of -87.36% over the last year, indicating a challenging period for shareholders.
Investors interested in a detailed analysis can find additional InvestingPro Tips for Fisker Inc. at https://www.investing.com/pro/FSR. Currently, there are more than a dozen tips available that could provide valuable insights. To access these insights and more, consider an InvestingPro subscription, now on a special New Year sale with a discount of up to 50%. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription.
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