Fisker Inc. Reports Quarterly Loss and Missed Sales Target

Fisker Inc., the electric-vehicle maker often referred to as the "Apple of autos," experienced a significant drop in its shares, falling by approximately 10% during after-hours trading on Monday. This decline came as a result of wider quarterly losses and sales that failed to meet expectations, highlighting the challenges of profitability in the EV industry.

In the third quarter, Fisker reported a loss of $91 million, or 27 cents per share, compared to $149.3 million, or 49 cents per share, in the same period last year. While revenue increased to $71.8 million from $14,000 a year ago and $825,000 in the second quarter, it fell short of analysts' predictions.

Analysts surveyed by FactSet had expected a loss of 23 cents per share on sales of $143.1 million. Despite maintaining its guidance for 2023 operating expenses and capital expenditures in the range of $565 million to $640 million, Fisker removed references to gross margins.

Previously, the company had projected gross margins of 8% to 12% for the year, with the caveat that input costs remain stable. This adjustment suggests the challenges Fisker faces in achieving its desired profitability.

During the third quarter, Fisker witnessed its first quarter with significant automotive sales revenue. The company contracted out the manufacturing of its cars while emphasizing design and consumer interfaces. In total, Fisker produced 4,725 vehicles and sold 1,097 units in the quarter.

The company also announced that it has improved its delivery logistics and infrastructure, leading to an acceleration in deliveries. With over 3,000 vehicles delivered globally to date and more on their way to customers, Fisker aims to achieve further scalability in the fourth quarter and beyond.

To attract customers, Fisker recently lowered the prices of its Fisker Ocean model in the U.S., marking the first price adjustment since introducing the trim pricing in 2020 and 2021. The company also made pricing adjustments in Europe and Canada, narrowing the gap between two different trims.

Fisker Inc.'s disappointing financial results serve as a reminder of the challenges faced by EV manufacturers in achieving profitability. As the company strives to improve its performance and expand its market presence, it will need to address these obstacles effectively.