Fisker cuts production target after suffering Q1 & Q2 2023 losses

Fisker cuts production target after suffering Q1 & Q2 2023 losses

California-based EV manufacturer Fisker Incorporated has cut its production forecast for the current year as it missed quarterly forecasts and suffered a considerable loss. During its second quarter (Q2) earnings call, the American EV maker revealed that it missed production targets for both Q1 and Q2 periods of 2023. The lower production rates also contributed to the company’s operational losses. In the Q2, the automaker lost $87.9 million, which is marginally less than the $88.6 million loss that the company suffered in same quarter of 2022.

In the Q1 period of this year, the company lost $120 million. Thus, the company has been in the red for the last two quarters in a row. However, the company is confident that it will return to an operating profit in Q4 2023.

The quarterly losses forced Fisker to trim down its production forecast for the whole year 2023. Blaming supply chain issues, the company announced that it has cut its production forecast for the whole year to between 20,000 and 23,000 units. Originally, the company’s production projection was to manufacture between 30,000 and 36,000 EVs this year.

California-based Fisker is among numerous EV start-ups that are experiencing various issues and bottlenecks in increasing production, and it is not the only automaker that posted quarterly operational losses. Moreover, it is quite a common trend among automotive start-ups to burn huge amounts of cash before they can swing to a profit. For instance, Rivian, which is one of key rivals to Fisker in the segment of EVs, suffered a huge loss of $1.35 billion in the first three months of this year. EV start-up Lucid also appears to be in the red.

However, one can expect Fisker to report improved numbers as the Fisker Ocean SUV has finally entered series production, and its deliveries to customers have already started in Europe and the US market. The Q1 sales revenue of the company amounted to $825,000.

Magna, the American brand’s contract manufacturing partner, produced a total of 1,022 units of the Ocean SUV in Q2 (April through June) of this year. Initially, the quarterly production target was set at 1400 to 1700 units.

Founded by Henrik Fisker and his wife Geeta Gupta-Fisker, the American EV start-up is obviously trying its best to prove its mettle. Recently, the company revealed four new electric models, the Pear electric hatchback, a high-performance all-electric grand tourer called the Ronin, an electric pickup truck called the Alaska, and an off-road SUV called the Force E.

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