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Fisker (NYSE:FSR) fell to an all-time low on Tuesday morning after the electric vehicle maker disappointed with its Q3 earnings release and disclosed ‘material weaknesses’ in its financial reporting.
Notably, Fisker (FSR) lowered its production guidance for 2023 to a range of 13K to 17K vehicles from a prior outlook for 20K to 23K vehicles. “This may be short-term pain and it may not be something that Wall Street wants to hear but it is extremely responsible for us, and it is essential for us that we do this for the long term,” stated CFO Geeta Fisker on the post-earnings conference call (transcript). Henrik Fisker said during the same call that he is quite optimistic that the company is very close to finalizing an agreement with Foxconn.
Bank of America stayed positive on the long-term upside for Fisker (FSR) amid the share price collapse. Analyst John Babcock expects the production guidance cut and earnings miss to put near-term pressure on the stock, but believes the long-term story remains on-track. “The reduction in its production guidance was primarily due to challenges in delivering vehicles to customers in North America,” he wrote. However, Fisker (FSR) on the positive side, FSR was said to have demonstrated that it can produce at its capacity of 300 vehicles per day with support from Magna Steyr’s expertise in manufacturing vehicles.
“We expect it will take more than a quarter for the company to resolve the challenges hindering deliveries and this serves to lower our 2024 deliveries estimate. Nonetheless, volumes are set to ramp up meaningfully in the coming years and we project FSR will achieve breakeven by 2025.”
Fisker (FSR) was down 22.98% to $3.17 at 12:30 p.m. and traded at a new low of $3.11 earlier in the session to push the market cap down to close to $1.1B.
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