Finally, some good news for Fisker (FSR +0.00%) investors! After a difficult third quarter that had production estimates slashed, a downbeat earnings report, a resigning chief accounting officer, and notice from the New York Stock Exchange for the late filing of its report, investors finally have some positive news heading into 2024. Let's dig in and see if Friday's stock price pop of roughly 15% is warranted.
Surprise
With so much pessimism surrounding the company, and a stock price testing new record lows, it didn't take much to boost the price this past Friday when Fisker announced better-than-expected delivery numbers.
More specifically, Fisker grew deliveries by over 300% from the third quarter to the fourth quarter, reaching roughly 4,700 total deliveries. Fisker produced 10,142 units in 2023 with deliveries beginning in June and taking a big uptick in September and October.
Further, Fisker began deliveries in Canada during December and is now operating in 12 markets across the globe. The first Fisker Ocean Sport -- the company's entry-level trim -- recorded its first delivery in the U.K. in December.
Before we surround those figures with a bit more context, it's worth noting that Henrik Fisker, chairman and CEO, remained optimistic when speaking about the 4,700 deliveries: "This accomplishment represents substantial revenue, and as we accelerate our delivery pace in 2024, I am excited to see faster growth. We have a solid business with relatively low overhead and an award-winning vehicle that customers enjoy."
Adding context
While the surge in deliveries was very much welcomed by investors, it's fair to say there is some context worth adding. Investors have to remember that the California-based automaker originally estimated production between 20,000 and 23,000 units before slashing that estimate to between 13,000 and 17,000 units.
Finally, management lowered those estimates yet again to roughly 10,000 units as the company had been struggling with a cash crunch and decided to unlock over $300 million in working capital by reducing production.
OTC: FSR
Key Data Points
Gaining momentum
Friday's announcement likely confirmed to investors that some speed bumps were in the rearview mirror. Investors had hints that deliveries were accelerating when the company noted that over 1,200 vehicles were delivered in October alone, which exceeded the company's entire third-quarter deliveries.
Fisker's Ocean has won six different European awards in Germany, France, Denmark, and the U.K., delivered two important over-the-air (OTA) software updates in the fourth quarter, and expanded its physical footprint and customer engagement.
There's no question the company is gaining some momentum heading into 2024, and the stock could certainly pop higher if the company proves it can expand its delivery infrastructure and close the gap between deliveries and production.
