Fisker (FSR) Q1 2023 report: 55 Ocean SUVs built, two delivered, guidance drops, PEAR delayed

Fisker Inc. has released its Q1 financial report for 2023, and although there is some room for celebration as early deliveries of its flagship SUV (sort of) roll out, there is much work to be done on the production side to come close to previously announced output guidance. Today also brought a progress update of the Fisker PEAR, a new version of the Ocean, and plans for more EVs.

Fisker Inc. ($FSR) continues to stay in the news this month with its Q1 2023 financial report we’ve been anticipating for a few weeks now. After beginning production on schedule this past November, Fisker finally delivered its first Ocean SUV to a customer in Denmark last week.

Yesterday, the Fisker team was in Germany celebrating the opening of three new footprints around Munich – a large Fisker Lounge in the city’s center, as well as a new showroom in the same building as its new European headquarters, located in Munich’s Motorworld complex.

Additionally, registrations in Germany opened up as CEO Henrik Fisker received the second ever delivery of an Ocean EV. Bloomberg recently reported that the first delivery in Denmark was allegedly on its way back to Magna Steyr where it was built, citing software issues affecting its operability. However, a Fisker Spokesperson shared the following with Electrek :

We can confirm that the first delivered customer vehicle is still in Copenhagen – and the other customer car is still in Munich, Germany. No customer cars are on the way back to Magna/Graz, Austria. Regarding software, we categorically deny that the Fisker Ocean can be driven at only low speeds. We are launching with basic ADAS software, a decision we announced last year, and that software will be updated over-the-air during the year

These are the growing pains that come with not only producing a flagship model, but trying to scale simultaneously (and quickly). In admirable Fisker Inc. fashion, the second iteration of the EV automaker announced ambitious production guidance for this year. However, following a less productive Q1, Fisker has adjusted its output goals and shared how much funding it has to try and get there.

Fisker lags in Q1, has catching up to do in 2023

According to the Q1 2023 financial results released by Fisker Inc. this morning, the automaker (and contract manufacturer Magna) produced 55 OCean SUVs – a mix of engineering, marketing, and customer vehicles. That’s actually one less than it produced in Q4 of 2022, and well short of its previously announced target of 300 vehicles by the end of March.

Still, the automaker states production is expected to ramp up beginning next week and it expects to produce between 1,400-1,700 Oceans in Q2 before reach a running rate of 6,000 units monthly by the end of Q3 2023 – as long as “all its partners deliver.”

As a result of the slower start in Q1 2023, Fisker has adjusted its annual production guidance from (up to) 42,400 units to between 32,000-36,000. As of May 8, 2023, Fisker is still reporting 65,000 reservations for the Ocean SUV.

Financially, Fisker Inc. reported cash and cash equivalents of $652.5 million (excluding $22M in VAT receivables that continue to be delayed into 2023) as of March 31, 2023 (end of Q1). That’s about $80 million less than it had at the end of 2022.

Fisker also relayed it has about a $47 million cash balance raised from its its $350 at-the-market (ATM) program during Q1. Net cash used in operations totaled $83.7 million, while capital expenditures were $45.7 million.

Due to higher R&D expenses this past quarter, Fisker reported a $121.6 million loss from operations and a total net loss of $120.6 million ($0.38 loss per share). Looking at key non-GAAP operating expenses and capital expenditures for the rest of 2023, Fisker Inc. expects to stay within a range of $535-$610 million – the same annual estimate it relayed entering the year.

Other Q1 updates

During this morning’s call with investors, Henrik Fisker shared some additional updates regarding the automaker’s progress in additional EV models. For example, Fisker mentioned a new “hardcore off-road package” for the Ocean SUV called Force E (not to be confused with Nissan’s e-4ORCE technology).

The package (seen in the rendering above) can be implemented on any AWD version of the Ocean SUV after purchase and is expected to become available in Q4 of this year. Per Fisker:

The off-road category is currently dominated by internal combustion vehicles, but Fisker wants to change that. Force E will perform superbly off road, with substantial ground clearance and ramp angles, 33-inch all-terrain tires on 20-inch reinforced wheels, specialized dampers, plus an estimated 550 horsepower. A full-length titanium underbody plate protects the Fisker Ocean’s battery, and the vehicle has structurally mounted front and rear skid plates. The package can even be retrofitted on all-wheel-drive Fisker Ocean Extremes and Fisker Ocean Ultras, giving future customers the option of transforming their vehicles. The Ocean’s outstanding utility is further enhanced with an optional interior package of rubber floor coverings, additional grab handles, and tie-downs. The unique, lightweight roof basket is a further option.

Lastly, Fisker shared a couple quick updates regarding the PEAR – its second EV model. As of May 8, 2023 the automaker has over 6,000 PEAR reservations as development continues. By using a new process it calls “steel ++,” Fisker says it has been able to reduce the PEAR’s parts count by 25%, which should help the automaker to try and achieve its lofty goal of delivering the EV for under $30,000.

As Fisker Inc. looks to finalize its battery partners for the PEAR, it shared that is now pushing its 2024 start of production into 2025.

There was no mention of the Project Ronin GT – Fisker’s third EV model previously teased, but we may learn more this summer. The automaker said that it is planning an inaugural Investor Product Day, where it intends to “showcase several new models that will be part of Fisker’s goal to produce 1 million vehicles in 2027.”

Love it, but let’s get those Oceans out and running correctly first, folks… baby steps. You can check out the full Q1 2023 webcast from Fisker here. We’ll check back following Q2.