Fisker Inc has revised down its 2023 production target due to supply chain challenges in the electric vehicle (EV) industry.
The setback is part of a broader trend of U.S. EV startups struggling to increase production rates amid weak demand and limited cash. As a result, Fisker’s shares slumped by 12% during premarket trading.
Fisker now anticipates producing between 32,000 and 36,000 units in 2023, down from the previous target of 42,400 cars. The decline is due to supply chain issues and an updated timeline for certification.
Fisker’s Q1 2023 adjusted loss was 32 cents per share, which was higher than Wall Street’s expected 30-cent loss.
According to Refinitiv data, the company had $652.5 million in cash and cash equivalents as of March 31, 2023, compared to $1.04 billion a year earlier.
In Q2 2023, Fisker plans to produce 1,400 to 1,700 vehicles.
Lucid Group Inc also cut its production outlook recently, leading to a 10% drop in its stock, continuing the downward trend for EV startups hoping to gain traction in an interest-rate-rising and sluggish demand market.