Fisker, in its Q3 2023 quarterly report, provided stakeholders with a comprehensive update on its recent developments and financial performance. The company has expanded its delivery operations to ten countries, with plans to enter two additional markets later this month. Operational momentum is anticipated to surge in Q4 2023. Fisker achieved significant milestones during this quarter, including the opening of its flagship US Lounge at The Grove in Los Angeles and the inauguration of its first east-coast Lounge in New York City. The company has customer locations established in ten countries, and it is set to open a Fisker Lounge in Shanghai, China, in January 2024.
Q3 2023 marked a pivotal quarter for Fisker, as it reported meaningful automotive sales revenue. The total revenue for the quarter amounted to $71.8 million, with a gross margin of -17% on a GAAP basis (adjusted gross margin improved to 9%). The earnings per share (EPS) stood at ($0.27), a marked improvement from the previous year’s ($0.49). Fisker successfully raised $450 million in gross proceeds during the quarter, bolstering its quarter-end cash, cash equivalents, and restricted cash to $625 million. An additional $550 million in gross proceeds is available as part of the recent convertible notes transaction.
In terms of production, Fisker manufactured 4,725 vehicles and delivered 1,097 vehicles during Q3 2023. Deliveries have been on an upward trajectory, especially with the optimization of last-mile logistics and the expansion of delivery infrastructure. Notably, the company exceeded its Q3 delivery volume in October alone by delivering over 1,200 vehicles. The total global deliveries have surpassed 3,000 Fisker Oceans, with hundreds more in transit to customers. Fisker’s stock closed the day at $4.11 per share, reflecting a positive increase of $0.27 (+7.03%).
Business Highlights:
Fisker expanded deliveries of the Fisker Ocean One in the US and Europe, with 1,097 completed in Q3, a significant rise from 11 in Q2.
Adjustments were made to pricing on all trim levels, and orders for the calendar year 2024 were opened. The US pricing by trim includes Ocean Extreme at $61,499, Ultra at $52,999, and Sport at $38,999.
Vehicle production saw a substantial increase, with 4,725 Fisker Ocean vehicles produced in Q3 2023, up from 1,022 in Q2 2023.
Fisker initiated deliveries in seven additional European countries, including the United Kingdom, and expanded US deliveries into over 30 new states. Deliveries are expected to commence in Canada and the Netherlands later this quarter, followed by Spain, Portugal, and Italy in Q1 2024.
Flagship lounges were opened in Los Angeles and New York City, with plans for additional facilities in North America and Europe. A Fisker Lounge is scheduled to open in Shanghai, China, in January 2024.
Vehicle test drive events expanded globally, covering Fisker Lounges, Centers+, and pop-up test drive events in numerous cities in Europe and North America.
In September, Fisker strengthened its balance sheet by executing $170 million in aggregate principal ($150 million in gross proceeds) of 0% senior unsecured convertible notes due 2025. This followed the July convertible notes offering of $340 million in aggregate principal ($300 million in gross proceeds). As part of the transaction, Fisker may offer up to an additional $623.3 million in aggregate principal ($550 million in gross proceeds) in 0% senior unsecured convertible notes.
Fisker introduced over-the-air software updates, enhancing product features based on customer feedback and the company’s product rollout strategy. The second annual Environmental, Social, and Governance (ESG) report was published, showcasing how sustainability efforts are deeply embedded in Fisker’s culture. Fisker also hosted a sustainability roundtable on November 18th to elaborate on its ESG initiatives.
Financial Highlights:
Revenue totaled $71.8 million, a significant increase from the previous quarter’s $825 thousand.
Gross margin was -17% on a GAAP basis, with an adjusted gross margin of 9%, excluding an inventory valuation adjustment associated with lower production levels during the ramp-up phase.
Loss from operations amounted to $99.6 million, including $6.1 million of stock-based compensation expense.
Net loss totaled $91.0 million, resulting in a loss per share of $0.27. Weighted average shares outstanding were 343.1 million for the three months ended September 30, 2023.
Net cash used in operating activities totaled $308.2 million, and capital expenditures amounted to $30.5 million.
Cash and cash equivalents, along with restricted cash, stood at $625.4 million as of September 30, 2023, excluding $50.5 million in VAT receivables expected to be received.
Fisker’s Q2 2023 Earnings Call is scheduled for later today, where additional insights into the company’s performance and future plans will be discussed. The call will be live-streamed on the company’s YouTube channel, with a follow-up discussion on key takeaways. In conclusion, Fisker’s Q3 2023 results reflect a period of significant growth and milestones, showcasing the company’s commitment to expansion, innovation, and sustainability in the electric vehicle market. The strategic initiatives undertaken during the quarter, coupled with positive financial indicators, position Fisker for continued success in the evolving automotive
