Shares of electric vehicle maker Fisker Inc. (NYSE: FSR) plunged over 18% this past week after the company reported disappointing full-year 2023 financial results that missed Wall Street expectations.
Fisker generated revenues of $272.9 million for 2023, which was a huge improvement from just $0.3 million the previous year but fell short of analysts’ consensus estimate of $353.2 million. The company reported a net loss of $762 million, or $2.22 per share, compared to a loss of $549 million, or $1.81 per share, in 2022. This larger than expected loss sent Fisker shares tumbling as investors reacted negatively to the earnings miss.
“Fisker’s revenue and earnings numbers failed to live up to investors’ hopes,” said Maxwell Goodman, senior auto industry analyst at Morgan Stanley. “The production ramp up for the Ocean SUV is taking longer than anticipated, leading to lower deliveries in 2023. Plus, continued supply chain issues and rising costs have pressured profit margins.”
The disappointing results overshadowed Fisker’s other announcement of beginning production of its Ocean SUV at Magna’s factory in Austria. The company still aims to deliver over 42,000 Oceans in 2023 but this target now seems very ambitious given the slow production ramp.
“Fisker needs flawless execution if it hopes to fulfill its delivery promises for the Ocean this year,” said Goodman. Any further delays or setbacks could shake investor confidence and apply downward pressure on the stock.”
With Fisker losing ground to rivals like Tesla and facing the harsh reality of bringing a new vehicle to market, it needs to demonstrate improved manufacturing capacity and cost control to reignite investor enthusiasm. Otherwise, its stock price may continue to stagnate as Wall Street remains skeptical of Fisker’s growth story.
