American EV automaker Fisker Inc. recently shared a business update, outlining several changes in the works, including leadership moves, accelerated deliveries, and potential partnerships with other OEMS. However, one less encouraging update is Fisker’s announcement it is once again lowering its production targets for the year to prioritize liquidity.
As 2023 continues to sit as a make-or-break year for Fisker Inc. ($FSR), the EV startup’s second iteration is hoping to scale to the global EV stage. We currently sit just over a year since production of Fisker’s flagship model, the Ocean, began at Magna Steyr in Graz, Austria.
While Fisker did nail its initial timeline to commence Ocean production, nearly every target since has been adjusted following early stumbles. For instance, Fisker’s initial production target for 2023 was an ambitious 42,400 units – but the automaker lowered that forecast to between 32,000 and 36,000 EVs in May.
Since then, we’ve seen Fisker lower its targets to between 20,000 and 23,000 EVs… then again to 13,000 to 17,000 units announced last month. During its latest progress update, the American automaker shared several internal changes, including yet another slash to its 2023 production targets. Here’s the latest.
Fisker reduces 2023 production target to 10,000 units
According to a recent business update shared by Fisker Inc., it has put several plans in motion to expedite Ocean deliveries – which include new showroom footprints, as well as strategic partnerships with logistics companies. Furthermore, Canadian deliveries are expected to begin this week.
Fisker says that now that nearly all of the initial launch edition Ocean Ones have been delivered, it will bolster its staff to lock in 2023 orders and keep deliveries going as it segues into 2024. An Ocean lease program is in the works for 2024 as well, while fleet orders to commercial customers are also being considered.
Additionally, Fisker says it is in “advanced discussions” with several automakers about possible strategic partnerships and will update the public in the coming months.
Slipped in between an update on its solar roof technology and its new accounting hires, Fisker once again announced it is slashing its production guidance – now down to (just over) 10,000 EVs for all of 2023. Per the release explaining the decision:
Fisker has made a strategic decision to reduce December production to prioritize
liquidity to unlock over $300 million of working capital, which creates additional business
flexibility.
In September, Fisker said it was on track to begin cranking out 300 Ocean EVs per day and delivered over 100 in a single day last week. As the automaker focuses on deliveries using existing builds, it appears it will also prioritize liquidity at the cost of production targets. According to Fisker’s Q3 financial results, it reported a loss of $91 million and revenue of $71.8 million – both numbers failing to meet previous expectations.
If we thought 2023 was a “do or die” year for Fisker Inc., 2024 appears like it will be even more trying as the American startup pivots yet again to stay liquid and keep going. We’re rooting for ya!
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