Fisker Stock Tanks After Poor Earnings. EV Concerns Accelerate.
2 min
Stock in Fisker was falling sharply after the electric-vehicle start-up reported weaker-than-expected third-quarter numbers and cut full-year production guidance.
It wasn’t a great quarter.
Fisker (ticker: FSR) announced a third-quarter per-share loss of 27 cents from sales of about $72 million on Monday evening. Wall Street was looking for a loss of 23 a share from sales of about $143 million. This was Fisker’s first quarter of significant sales shipping the Ocean, its first EV.
Fisker delivered 1,097 vehicles and produced 4,725 in the quarter. The company added in its news release that 1,200 were delivered in October as well.
Full-year production guidance is now 13,000 to 17,000 units. In August, the company said it planned to build about 20,000 to 23,000 units this year. That was trimmed from earlier guidance. In May, Fisker’s production forecast called for 32,000 to 36,000 units in 2023.
“This is a very prudent change that we need to do to enable our global delivery and logistics platform to scale so we can serve our customers even better and we are not sitting on inventory,” said Chief Financial Officer Geeta Gupta-Fisker during the company’s earnings conference call.
Management expects full-year 2023 research and development, selling, general and administration expenses, and capital spending to be between $565 million and $640 million. That is the same range that was provided in August.
Fisker ended the quarter with some $625 million in cash and investments on its books. Wall Street expects the company to use roughly $75 million a quarter for the coming few quarters, according to FactSet.
“In a separate filing, Fisker warned that it will delay its 10-Q filing after finding material weaknesses in internal controls, stating that it was unable, without reasonable effort and expense, to complete the preparation of its quarterly report by November 9,” wrote CFRA analsyt Garrett Nelson in a research report Monday. That warning followed the departure of a former chief accounting officer, effective Oct 27.
He rates shares Sell and has a $1 price target on the stock. TD Cowen analyst Jeffrey Osborne rates shares Buy. His price target is $11 a share. He cited “growing pains” for weak deliveries adding in a report, “Arguably the key takeaway from results was that once Fisker is able to figure out the delivery end of the equation it should be able to scale production as needed to meet demand.”
Fisker stock was down 22% Tuesday while the market surged ahead following better-than-expected inflation data. The S&P 500 and Nasdaq Composite were up about 2% and 2.3%, respectively.
The stock gained 6.6% in regular trading Monday, closing at $4.11 a share. That is 26 cents away from where the stock closed at on Nov. 7. This earnings report wasn’t typical. Fisker was due to report earnings on Nov. 8, but delayed its report after hiring a new chief accounting officer. Fisker stock slid from $4.37 a share to $3.99 a share after the delay was announced on Nov 8.
Through Monday trading, Fisker stock was down 52% over the past 12 months while the S&P 500 and Nasdaq were up about 11% and 23%, respectively. Higher interest rates and lower prices for EVs, caused mainly by Tesla (TSLA) price cuts, have sapped investor enthusiasm for stock in EV start-ups that aren’t profitable yet.
Options markets implied the stock will move about 15%, up or down, following earnings. Shares have moved an average of about 12%, up or down, after the past four quarterly reports, gaining one time and falling three times over that span.
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The sports-car maker delivered 279,449 cars last year, down from 310,718 in 2024.
Chinese carmaker GAC will expand its Australian electric vehicle line-up with the city-focused AION UT hatchback.
Chinese carmaker GAC will expand its Australian electric vehicle line-up with the city-focused AION UT hatchback.
< 1 minGAC Australia has confirmed the AION UT, an all-electric compact hatchback, as the fourth model to join its local range, with the vehicle set to go on sale mid-year.
The AION UT will be the second fully electric model released in Australia under GAC’s AION sub-brand, following the launch of the AION V medium SUV.
The company says the new hatch has been developed specifically with urban driving in mind, combining compact exterior dimensions with competitive interior space.
Designed at GAC’s Milan Design Centre, the AION UT features a fastback silhouette, two-tone floating roof and pixel-style lighting elements intended to give the car a distinctive, tech-forward appearance.
GAC also points to what it describes as the world’s first “eyebrow-style” headlamp design as a visual signature for the model.
Despite its compact positioning, the AION UT rides on a 2,750mm wheelbase, which GAC says allows for interior space that rivals larger vehicles in the same segment.
Full technical specifications, equipment levels and pricing for the Australian market have not yet been announced.
The confirmation of the AION UT comes as competition in Australia’s electric vehicle market continues to intensify, particularly at the more affordable end of the spectrum.
While early EV adoption was dominated by premium models and SUVs, manufacturers are increasingly turning their attention to smaller, city-oriented cars aimed at price-conscious buyers and urban commuters.
GAC entered the Australian market late last year with a mix of petrol, plug-in hybrid and electric models, including the AION V, M8 PHEV and EMZOOM.
The company has indicated it plans to introduce more than 10 models locally over the next five years as part of its long-term Australian strategy.
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