What happened
Fisker (FSRN -12.70%) released its first quarterly report today since it began delivering its all-electric Ocean SUV. Investors are disappointed, though, knocking the stock down by more than 9% at Friday morning's low point. As of 11:05 a.m. ET, Fisker shares are still down by 6.2%.
So what
Fisker began initial vehicle deliveries in several European countries as well as the U.S. in the second quarter. But while it produced more than 1,000 vehicles in the second quarter, it made only its initial deliveries, generating just $825,000 in revenue.
Production is ramping up, however, with the company saying it produced another 1,009 vehicles in July alone. But investors seem to be focusing on a guidance cut from Fisker.
Now what
The company reduced its projection for 2023 production from a previous range of 32,000 to 36,000 units to a new range of 20,000 to 23,000 vehicles. It said the reduction was "due to a short-term capacity constraint at one supplier."
While Fisker's sales were well short of expectations in the quarterly period, it did beat estimates on the bottom line. It reported a net loss of $0.25 per share that was better than the $0.27 expected loss.
But the production estimate for 2023 was the second cut this year. The company originally hoped to manufacture up to 42,000 Ocean SUVs in 2023 before it reduced that estimate in the first-quarter report.
It's early in the start-up of Fisker's manufacturing process, though. The company uses a contract partner for production and hopes that will mean profitability will be quicker than for many other electric vehicle start-ups.
Investors will watch how quickly deliveries ramp up in the third quarter and will also be eyeing progress on its future vehicle offerings. Fisker intends to next build a smaller EV meant for city use as well as a future pickup truck model. For now, investors are in wait-and-see mode with the stock.
