Fisker commenced deliveries of its battery-electric Ocean SUV in Q2 2023. Despite facing challenges with suppliers and experiencing difficulties in achieving full production of the electric vehicle during this period, the startup reported a narrower-than-expected loss for the second quarter. On Friday, Fisker’s shares dropped approximately 6%.
During Q2, Fisker manufactured only 1,022 Ocean SUVs, falling short of the anticipated range of 1,400 to 1,700 vehicles. Consequently, the company revised its full-year production guidance due to ongoing supply chain issues. Fisker now estimates that Magna International, its manufacturing partner, will produce 20,000 to 23,000 Ocean SUVs at their contract manufacturing plant in Austria in 2023. This figure is significantly lower than the initial guidance of 32,000 to 36,000 units.
Despite these challenges, Fisker highlighted the positive gross profit margin of 7.5% on the first batch of Ocean SUVs delivered, as well as a reduced year-over-year net loss for the quarter. The net loss for Q2 was $85.5 million, or 25 cents per share, surpassing the Refinitiv consensus estimate of 28 cents per share predicted by Wall Street analysts.
The reported revenue for the quarter was $825,000, reflecting delays in production that resulted in the delivery of only 11 Ocean SUVs to customers before the end of the quarter. The projected revenue of $159.3 million did not materialize, but CNBC refrains from comparing reported revenue to projections due to limited analyst coverage.
In comparison, a year ago, Fisker incurred a net loss of $106 million, or 36 cents per share, and generated approximately $10,000 in revenue.
As of June 30, Fisker possessed $521.8 million in cash, a decrease from the $652.5 million reported on March 31. To bolster its finances, the EV manufacturer raised an additional $300 million through a convertible note offering in July.
There was no update provided on the number of reservations for the Ocean and other forthcoming Fisker models. In May, when first-quarter results were disclosed, the company had around 65,000 reservations for the Ocean. Fisker’s next model, the affordable electric vehicle named the Pear, is anticipated to start production at a Foxconn plant in Ohio in 2025.
During an event in California, Fisker unveiled three upcoming battery-electric models: The Pear, a compact car with an expected price point of approximately $30,000 upon its release in mid-2025; the high-end luxury sports car Ronin, priced at around $385,000; and the Alaska, a new pickup truck based on the extended version of the Ocean’s platform, set to launch in 2025 with a starting price above $45,000. While the Pear and Ronin had been previously announced, the Alaska was unveiled for the first time. Reservations are now open for all three models.
Additionally, Fisker provided a sneak peek of the Force E, an off-road package for the Ocean, scheduled to be available in Q1 2024 without disclosing pricing details.
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