Fisker: Second Quarter 2023 Expected to Bring Turnaround

Shortly before the presentation of the model range up to 2026, Fisker released the business results for the second quarter of 2023. Founder and CEO Henrik Fisker commented:

"Our second quarter marked an important milestone for Fisker, as we began delivering our first Fisker Ocean vehicles to customers. We are currently in a quarter that represents a true turning point for Fisker – our business model has now been validated, as we are already achieving a positive profit margin with the first sold vehicles."

Fisker's revenues in the second quarter of 2023 totaled $825,000 (around €752,000). The gross margin was 7.5 percent. Without discounted deliveries to the first investors of the publicly traded start-up, Fisker would have achieved 18.5 percent. The net loss amounted to $85.5 million (about €78 million). The net cash consumption for operating activities was higher: it amounted to $128.1 million (around €117 million), while capital expenditures were $91.3 million (around €83 million).

Important Key Figure: As of June 30, 2023, the company had cash reserves amounting to $521.8 million (€476 million) – enough to expand production with the increasing revenues from Ocean sales. Although not as quickly as planned: Fisker updated the production forecast for 2023 to "20,000 to 23,000 units." An important supplier needed additional time to ramp up its capacities, it was said. Previously, this year's forecast was initially reduced from the announced 42.400 units to a range of 32.000 to 36.000 Oceans.

The supplier die-off is making alternatives scarce

Interesting background: It is a component without which the Ocean cannot be delivered. When the supplier went bankrupt, Fisker (since other OEMs also had parts manufactured there) quickly got its tools back, but still needed another supplier who could quickly implement the planned volume with these tools – ideally not in the furthest corner of the universe. Thus, Fisker is one of the first to experience the drama of the supplier die-off: If a specialist for more specific components goes bankrupt today, it is not always easy to immediately find a second, or ideally a third or fourth, supplier who can deliver the same component in the same quality and quantity right away!