By Fisker faced challenges in the fourth quarter of the year, with its loss widening more than anticipated. The electric-vehicle startup reported a loss of $1.23 per share, a significant increase from the previous year. Analysts were expecting a much lower per-share loss of 23 cents.
Factors Contributing to Loss
A major portion of Fisker’s net loss was attributed to a non-cash fair value adjustment related to its 2025 senior convertible notes. This adjustment had a notable impact on the company’s financial performance.
Revenue Falls Short
Despite efforts to improve financial performance, Fisker’s revenue fell short of expectations, totaling $200.1 million compared to the anticipated $327.7 million as per analysts’ forecasts. The company noted that this result did not include $44.6 million in deferred revenue.
Warning About Operational Challenges
In light of its financial situation, Fisker stated its intention to issue a warning regarding its ability to sustain operations in the upcoming annual report for 2023. To address these challenges, the company plans to reduce its workforce by about 15% and implement cost-cutting measures.
Future Outlook
Looking ahead, Fisker aims to sell 20,000 to 22,000 vehicles to consumers and dealers in 2024. The company anticipates generating cash from the sale of existing 2023 production vehicles that have already been largely paid for.
It remains to be seen how Fisker will navigate these financial hurdles and work towards a more stable future in the competitive electric vehicle market.
Comments