Terrible, No Good Earnings, Probably: Fisker Delays Q3 2023 Earnings Release as CTO and Lead Accountant Abandon Ship

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The EV bubble has most certainly popped and the time of reckoning is now upon once high-flying stocks as they contend with the ground realities of a full-fledged price war by Tesla amid muted demand for electric vehicles. Fisker (NYSE: FSR) stock was briefly a darling of the market back in 2021. Now, it is plumbing all-time lows.

Hell hath no fury like a stock scorned, pardon the pun. Fisker shares are down over 7 percent in today’s pre-market trading session as the company was forced to delay its Q3 2023 earnings release amid an apparent mass exodus of key executives, including the company’s CTO and Chief Accounting Officer.

As per Fisker’s press statement, the company will now announce its earnings after the market closes on Monday, November 13, 2023. The company expects to file the requisite Form 10-Q by November 14, 2023.

Fisker currently sells an all-electric SUV, dubbed Ocean. Manufactured on Magna’s FM-29 EV platform, the Ocean SUV offers an EPA-estimated range of around 360 miles and boasts of solid sustainability credentials. The Pear is Fisker’s EV geared toward urban commuting. Built in partnership with Foxconn, the Pear is expected to debut in 2025 with a price of tag of $29,900. Fisker also plans to launch an all-electric pickup truck, called Alaska, and a hypercar, dubbed Ronin.

The company was able to report automotive revenue for the first time in Q2 2023, having earned $825,000 in total revenue for the quarter. As per its last official update, Fisker expected to produce between 20,000 and 23,000 vehicles in collaboration with its manufacturing partners for the entirety of 2023. However, in light of the recent high-profile departures, we would hazard a well-educated guess that all is not well in the EV startup’s realm.

On the bright side, it does not appear that the EV retailer is currently in the midst of a cash crunch. After all, it raised $300 million in gross proceeds from a convertible bond offering back in July 2023. As of the end of Q2 2023, Fisker’s cash, cash equivalents, and restricted cash totaled $521.8 million, excluding proceeds from the convertible bond offering and VAT receivables. 

Fisker’s woes align with the current travails of most EV players. While much has been written on the stagnating EV market, some analysts disagree, contending that the market continues to grow, albeit dominated by a select clique of EV giants such as Tesla and BYD.

Fisker shares are down over 40 percent so far this year. Since its public flotation back in 2020, the stock is down over 50 percent.

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