Fisker cuts output forecast on lingering supply chain woes; loss narrows

Fisker Inc’s smaller-than-expected quarterly loss and first revenue from deliveries of its electric sport utility vehicles helped counter an annual production cut, sending its shares up more than 2% in premarket trading on Friday.

The company now expects to produce between 20,000 and 23,000 vehicles in 2023, down from 32,000 to 36,000 units projected in May.

A key supplier required additional time to ramp up capacity to meet the company’s production schedule in the second half of the year, Fisker said.

A month ago the company reported production of 1,022 Ocean SUVs in the second quarter, missing its target of 1,400 to 1,700 units due to a shortage of components.

Electric vehicle startups have faced supply chain issues with component providers prioritizing larger EV makers with proven production capacity and demand.

The California-based company, however, recorded its first quarterly revenue from sales as the electric sport utility vehicle (SUV) maker kicked off deliveries in Europe and the United States.

The company reported $825,000 in revenue in the second quarter.

An Austrian unit of Canadian auto parts maker Magna International makes the sports utility vehicle for the company, disqualifying it for $7,500 federal tax credit in the United States.

It reported a loss of 25 cents per share, compared with analysts’ expectation for a loss of 28 cents.

Analysts expect the company to record an operating profit in the fourth quarter, according to Refinitiv data. (Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila and Anil D’Silva)