Fisker (NYSE:FSR) stock is on the move in early trading after the electric vehicle (EV) startup shared a new strategic plan. Among the prominent features of the plan are another reduction to the firm’s production guidance and a focus on finding new strategic partners.
Investors in FSR stock seem to be down on the update, given the latest cut to Fisker’s delivery outlook. FSR stock is currently down by about 3%.
FSR Stock: Fisker’s Latest Plan
As part of the company’s fresh plan, Fisker lowered its 2023 production guidance to “just over 10,000 units,” down from its previous outlook for between 13,000 and 17,000 vehicles. According to Reuters, this is “at least [the] second time” that the firm has cut its production guidance. The company reportedly made the decision in order to “prioritize liquidity to unlock over $300 million of working capital.” This may indicate that the firm has been running low on cash.
At the same time, however, CEO Henrik Fisker reported that Fisker intends to “continue to accelerate sales and deliveries” going forward. “I expect by the end of this year we will have delivered more customer cars than any Western EV startup did in their first year of deliveries,” added the CEO.
In addition to that, the company noted that it is “in advanced discussions with several automakers [about strategic partnerships] and expects to provide updates on this topic in the coming months.”
A New Financial Whiz and Logistical Upgrades
Meanwhile, after reporting “deficiencies in accounting and internal control” last month, Fisker also hired a new Executive Vice President of Finance and Accounting, Dan Quirk. Quirk has spent the last 30-plus years at accounting firm Ernst & Young. In addition to the new EVP, Fisker also recruited a new Vice President of Finance and Controller Operations as well as other new executives.
On the logistics front, Fisker noted that it has recruited “multiple transportation logistics partners to quickly move Fisker Oceans to delivery locations so that they can be delivered to customers more rapidly.”
Finally, the company has also agreed to use real estate owned by Boxer Property to facilitate its delivery and logistics operations.
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 are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.