Electric vehicle (EV) start-up company Fisker (NYSE:FSR) is trending on social media after the automaker announced that it would cut its 2023 production forecast due to its lingering supply chain issues. Despite opening strong, FSR stock is down over 7% in early trading.
Additionally, Fisker noted that it had kicked off the deliveries of its Ocean SUV and recognized a significant amount of revenue for the first time.
The Production Cut
Fisker reduced its 2023 production guidance to 20,000-23,000 vehicles versus its previous outlook of 32,000-36,000.
The automaker cited a supplier’s inability to meet its demand as the key reason for the large reduction.
First Deliveries and Initial Revenue
Fisker noted that it had begun delivering Ocean SUVs to its customers “in Austria, Denmark, Germany, and the US” in Q2. The automaker added that it expects to soon start providing its customers in Norway and Sweden with the SUV as well.
The company delivered 11 EVs in Q2, enabling it to recognize $825,000 of revenue. However, the automaker still spent $128 million of cash on operating activities and shelled out $91.3 million on capital expenditures.
Fisker noted that the Extreme version of the Ocean had achieved a range of 360 miles. According to the company, the EV “has the longest range of any new electric SUV under $200,000 sold in the US today.”
The company now has dealerships in London, Oslo and Stockholm. It intends to launch additional sales centers in many other cities, including Paris, Frankfurt, New York, and Los Angeles.
The Performance of FSR Stock
Before today’s action, the shares had climbed 5.8% in the last month However, today’s decline has wiped out all of FSR’s gains from the last month and put it down 1.3% for the month. FSR stock is down 27% for the last six months about 15% year-to-date (YTD).
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
