Fisker (NYSE:FSR) stock is taking a plunge after the electric vehicle (EV) company postponed its third-quarter earnings. Fisker initially stated that it would report its results today before the market open. However, the company announced this morning that it would push back the date to Monday, Nov. 13 after the market close. Fisker also plans on filing its Form 10-Q by Nov. 14.
Fisker attributed the delay to the departure of its Chief Accounting Officer (CAO), effective as of Oct. 27, and the appointment of a new CAO, effective as of Nov. 6. This management change “delayed the completion of the financial statements and related disclosures.”
This news followed the replacement of Chief Technology Officer (CTO) Dr. Burkhard Huhnke earlier this month, who departed for personal reasons. Former Fisker Senior Vice President of Engineering David King, who joined the company in 2021, took Huhnke’s place in the role of CTO.
FSR Stock: Fisker Delays Earnings Due to New CAO
Delaying earnings is seen as a bad signal, which explains the decline in FSR stock today. That’s coupled with the announcement last month that Fisker would lower the price on its Ocean Extreme trim to $61,499 from $68,999, which is already in effect.
Customers who have already ordered or purchased the vehicle will be eligible for a $7,500 price adjustment. At the same time, Fisker raised the prices of its Ocean Ultra and Sport models, effective as of Nov. 6. The Ultra will now start at $52,999, up from $49,999, while the Sport will start at $38,999, up from $37,499.
“We are very confident in the continued demand for the Ocean and we expect the Sport and Ultra models to be the highest sellers starting in 2024,” said CEO Henrik Fisker. “We expect our overall margins will be unaffected because higher Sport and Ultra pricing, combined with our cost-reduction initiatives and lower input prices, will support the anticipated trajectory of our profits.”
These price changes will not affect Fisker’s Q3 earnings, as they were implemented after Sept. 30. For the quarter, Wall Street analysts expect revenue of $136 million, a record-high. Profitability is still a reach away, however, as the company is forecast to post a GAAP EPS loss of 20 cents.
On the date of publication, Eddie Pan 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.
