Fisker Sales Decline & Warning

Fisker recently released disappointing fourth-quarter sales figures, along with a concerning "going concern" warning for investors. As a result, shares are taking a nosedive in after-hours trading.

Sales Figures and Production Details

The electric vehicle start-up reported fourth-quarter sales of approximately $200 million, falling short of Wall Street expectations of around $330 million. In the same period, Fisker manufactured 4,789 vehicles but only managed to deliver 3,818. Throughout the entire year, Fisker and Magna International jointly produced 10,193 Fisker Oceans, with 4,929 vehicles successfully reaching customers.

Financial Outlook and Concerns

Despite ending the year with nearly $400 million in cash reserves, Fisker anticipates utilizing around $300 million in 2024. With estimated sales reaching $1.9 billion, the company aims to sell between 20,000 to 22,000 vehicles this year, equivalent to sales figures hovering around $900 million to $1 billion. However, projected expenses are set to range from $330 to $390 million, indicating a potential need for additional funding.

"Going Concern" Warning and Future Prospects

As a precautionary measure, Fisker included a "going concern" warning in its latest updates, signaling the necessity for significant operational changes within the next 12 months to sustain business operations. The company also disclosed ongoing negotiations with a major automaker for potential investment, joint development initiatives for electric vehicle platforms, and North America-based manufacturing collaborations. Nevertheless, the specific automaker involved remains undisclosed at this time.

Stock Performance and Market Reaction

Following the announcement, Fisker's stock plummeted by 33% in after-hours trading on Thursday, reaching a value of 48 cents per share. During regular trading hours, the stock dipped by 0.7%, contrasting with the positive movements witnessed in the S&P 500 and Nasdaq Composite indices, which increased by 0.5% and 0.9%, respectively. Over the past year, Fisker shares have witnessed a significant decline of approximately 90%, attributed to factors such as rising interest rates and intensifying competition in the electric vehicle sector.

While uncertainties loom over Fisker's future financial health and strategic partnerships, the market eagerly anticipates further developments from the company in the months ahead.