California-based electric vehicle (EV) startup Fisker has revised down its annual production guidance for the fourth time this year, citing the need to secure $300 million in working capital. The company aims to produce around 10,000 vehicles in 2023, a significant reduction from its optimistic forecast of 42,400 Ocean SUVs in November 2022.
This latest adjustment comes less than a month after Fisker scaled back its 2023 production target to a range of 13,000 to 17,000 vehicles. The continuous downward revisions reflect the challenges faced by the company in meeting its initial ambitious goals, with the latest projection being only a quarter of its optimistic estimate from a year ago.
The decision to cut production targets is a strategic move by Fisker to access $300 million in working capital, providing the company with the much-needed flexibility. Despite the challenges and adjustments, Fisker Chairman and CEO Henrik Fisker remains optimistic about the company’s performance in the current market conditions.
Fisker acknowledged early delivery challenges but highlighted the team’s efforts to overcome them, expressing satisfaction with the acceleration of sales and deliveries. Henrik Fisker stated, “I expect by the end of this year we will have delivered more customer cars than any Western EV startup did in their first year of deliveries.” The company is focused on expanding its current markets and enhancing sales and service offerings for the Fisker Ocean.
In addition to the production adjustments, Fisker unveiled a new strategy aimed at improving deliveries in the U.S. and Europe. While specific details were not provided, the strategy appears to involve collaborating with additional transportation logistics companies to expedite deliveries, increased communication with reservation holders, and the establishment of more facilities dedicated to retail, deliveries, and service.
Fisker’s business update also mentioned the launch of a leasing program in the U.S., Canada, and Europe, although specific details about the program’s rollout were not disclosed.
To address recent challenges and streamline its financial operations, Fisker has made key executive appointments. Dan Quirk joins as the new Executive Vice President of Finance and Accounting. This appointment follows the departure of two Chief Accounting Officers and a delay in filing quarterly earnings reports with the Securities and Exchange Commission. Other notable hires include Axel Buhr as Vice President of Finance and Controller Operations, Ram Iyer as Senior VP of EE Integration and Validation, and Wolfgang Hoffmann as Country Manager in Canada, a market where Fisker is gearing up to initiate deliveries.
As Fisker navigates through the evolving landscape of the EV market, the continuous adjustments to production targets and strategic initiatives reflect the company’s commitment to adapting to market dynamics, overcoming challenges, and positioning itself for sustainable growth. The industry will be closely watching Fisker’s progress as it addresses operational hurdles and strives to make a significant impact in the competitive electric vehicle sector.