Fisker slashes production guidance again and warns of “material weaknesses” in financial reports

Fisker’s Q3 2023 report is out, and the EV startup reported increased production and deliveries of its Ocean EV. However Fisker also slashed its production guidance again to less than half of its original estimate, and warned of potential issues with their previous financial reports.

According to Fisker’s quarterly report, they manufactured 4,725 Ocean units in Magna Steyr’s plant in Graz, Austria, up significantly from Q2 production of 1,022 units. Fisker, however, delivered only 1,097 units to customers in nine European countries and the US. In comparison, it only delivered 11 units in the second quarter.

In welcome news for reservation holders, Fisker’s Ocean delivery has jumped in the last quarter of the year. It delivered over 1,200 units in October alone, more than its total delivery in Q3. According to Fisker, the deliveries improved thanks to last-mile logistics optimization and expansion of its delivery infrastructure.

Total deliveries have now exceeded 3,000, with hundreds more allegedly on the road to buyers. Despite promising the first deliveries in September, the Ocean will finally hit Canadian roads in Q4, along with the Netherlands. However, buyers in Spain, Portugal, and Italy will wait until Q1 2024 to get their cars. Fisker also plans to open its first Fisker Lounge in Shanghai, China, in January.

There was more bad news than good however. In a regulatory filing on Monday night, following its earnings report, Fisker disclosed that it has identified “material weaknesses” in its internal control over financial reporting. This revelation comes in the wake of the sudden departure of its chief accounting officer in October, leading to a delay in the filing of its quarterly 10-Q report. (via CNBC)

The filing suggests a potential need for Fisker to restate some of its past financial reports. The company indicated that the material weaknesses would be thoroughly discussed in its upcoming 10-Q report, emphasizing that it is actively recruiting additional financial experts. However, no specific timeline for the filing of the 10-Q was provided.

Fisker CFO Geeta Gupta-Fisker also announced a revision in the company’s 2023 production guidance, lowering it to a range of 13,000-17,000 units. This is down from the original 40,000 units it estimated earlier this year, which was subsequently dropped to 32,000-36,000 units in May, and again to 20,000-23,000 units. Fisker says these adjustments were being made to prevent inventory accumulation, suggesting weak demand for its Ocean SUV.

Fisker is already offering big discounts on the Ocean Extreme.

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