LOS ANGELES - Fisker Inc. (NYSE:FSR), often compared to the "Apple (NASDAQ:AAPL) of autos," experienced a significant setback as its shares tumbled by approximately 14% on Monday. The slide was prompted by the company reporting an expanded third-quarter loss and sales that fell short of Wall Street expectations. Despite the negative outcomes, Fisker maintained its forecast for 2023 operating expenses and capital expenditures, which are expected to range between $565 million and $640 million.
The electric vehicle manufacturer reported a third-quarter loss of $91 million, or 27 cents per share, which is an improvement from last year's third-quarter loss of $149.3 million, or 49 cents per share. However, the company's revenue did see an uptick to $71.8 million from just $14,000 a year prior and $825,000 in the second quarter. This increase marks Fisker's first quarter with "meaningful automotive sales revenue," yet it still fell below analysts' expectations of a 23-cent loss per share on sales of $143.1 million.
In a strategic move to boost sales, Fisker announced price reductions for its Fisker Ocean model in the United States, Europe, and Canada—marking the first such price cut since the vehicle's debut—and adjustments to trim pricing. The company is also optimizing last-mile logistics and expanding its delivery infrastructure to enhance scale effects in the fourth quarter.
Fisker's production and delivery figures for the quarter were notable. The company produced 4,725 vehicles and sold 1,097 units. Furthermore, they have delivered over 3,000 vehicles globally with hundreds more currently en route to customers.
This news comes amid broader industry challenges, including issues related to Tesla’s Cybertruck contract and continued losses in Plug Power’s stock value. Despite these hurdles, Fisker remains focused on improving its financial performance and scaling up operations as it navigates a competitive electric vehicle market.
InvestingPro Insights
In light of the recent performance of Fisker Inc., it is crucial to consider some key InvestingPro Tips and Data. Firstly, InvestingPro Tips highlight that Fisker has been quickly burning through cash and operates with a poor return on assets, which may be concerning for potential investors. This aligns with the reported third-quarter loss and the company's struggle to meet Wall Street expectations.
Also, the company's stock performance has been underwhelming in recent times, with a significant price drop over the last year. This is reflected in the InvestingPro Data, which shows a 1 Year Price Total Return of -51.7% and a 3 Month Price Total Return of -26.08%.
Furthermore, the company's revenue growth has been accelerating, as evidenced by the jump to $71.8 million from just $14,000 a year prior. This aligns with the InvestingPro Data, which shows a Revenue Growth of 1600.0% in the last twelve months as of Q2 2023.
In conclusion, potential investors should be aware that Fisker's financial performance has been mixed, with impressive revenue growth but concerning losses and poor stock performance. For more detailed insights and additional tips, consider exploring the InvestingPro product. It offers 20 more tips for Fisker and other companies, providing a comprehensive overview of their financial health and future prospects.
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