Fisker EV’s Stock Hits Record Low Following Reduced Production Goals

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Fisker revises its 2023 EV production forecast downwards, aiming for 13,000-17,000 units compared to the initial 20,000-23,000. This major shift was announced post-market on Monday, with their Q3 results triggering a dramatic drop in Fisker’s stock.

Fisker Inc.’s shares plunged over 24% to a record low on Tuesday following the electric vehicle startup’s decision to cut its production targets, contributing to difficulty in increasing deliveries. The company aims to produce 13,000 to 17,000 electric vehicles in 2023, significantly lower than the earlier forecast of 20,000 to 23,000. This announcement was made post-market on Monday with the release of third-quarter results, which saw Fisker’s shares drop to a low of USD 3.11, marking its steepest daily decline since going public in 2020. The stock has fallen roughly 56% this year, a stark contrast to its peak of about USD 32 in March 2021. Following the revised forecast, many Wall Street analysts, including Barclays, Evercore, and Cowen, reduced their price targets on Fisker’s shares. The average price target among 14 analysts is now USD 6.50, down from USD 8, with a consensus recommendation of “hold.”

Despite these challenges, Fisker delivered 1,200 vehicles in October, surpassing its total deliveries in the third quarter. The company reported third-quarter revenues of USD 71.8 million and a net loss of USD 91 million, missing analyst predictions. Unlike other EV companies, Fisker outsources its vehicle production to Magna International, a Canadian auto part supplier.

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The company also experienced internal upheaval with the departure of its chief accounting officer in October, leading to delayed quarterly results and concerns over financial reporting controls.

Fisker’s current short interest is USD 364 million, about 46% of its public float, indicating high market scepticism. In response to the recent updates, CFRA Research analyst Garrett Nelson reiterated a “strong sell” rating, halving the 12-month price target from USD 2 to USD 1.

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