Fisker Q4 report: ‘Substantial doubt’ it can continue, seeks investment from ‘large automaker’
Fisker has shared preliminary details of its Q4 and full fiscal year 2023 results, and they’re… not great. Revenue is up for the quarter, but cash on hand is dwindling, causing the American EV automaker to express “substantial doubt” about its ability to move forward. That said, Fisker Inc. has some negotiations in the works to gain more runway, including a potential deal with a large OEM.
2023 was, in many ways, a big year for Fisker Inc. ($FSR) as it was challenging. It’s one of the pains of any young EV startup and nothing the Fisker name isn’t used to. Deliveries of the company’s flagship Ocean SUV continued to grow last year as Fisker unveiled three additional models in its pipeline.
However, Fisker faced several software issues in customer Oceans, and sales were lower than anticipated. Several times throughout 2023, the automaker lowered its production targets, leading to a December business update that detailed leadership moves, accelerated deliveries, and even lower production targets to maintain liquidity.
Q4 was also the first time we heard Fisker mention exploring potential partnerships with other OEMS. Since then, things haven’t gotten much brighter.
Fisker Q4 numbers tell a grim tale. Can it bounce back?
In addition to today’s Q4 and full 2023 preliminary report, chairman and CEO Henrik Fisker offered an essay about how the EV company got here. It’s too long to share here, but we recommend reading it in full.
Let’s dig into the numbers. Fisker’s preliminary Q4 2023 revenue was $200.1 million, up $128.3 million compared to a quarter prior. However, Q4 and the total 2023 revenue exclude $44.6 million of deferred revenue that will be “recognized in future periods.”
Gross margins for Q4 2023 sunk to -35%, translating to earnings per share at a loss of $1.23. For the full year, Fisker’s earnings per share was a loss of $2.22. As of December 31, 2023, Fisker’s cash on hand, restricted cash, and equivalents totaled $395.9 million. Add the carrying value of its existing Ocean inventory and raw materials, and that number jumps to about $530 million.
As a result of these Q4 and full 2023 numbers, Fisker has expressed doubt it can continue its work with how it is currently structured and is relying heavily on its recently implemented dealership model to help boost EV sales in 2024. Fisker previously relayed that over 250 dealer partners in North America have expressed interest, but only 13 have actually signed agreements.
In addition to assistance from dealers, Fisker said in its Q4 report that it is currently in negotiations with a “large automaker” regarding a potential transaction that includes an investment in the company and joint development of “one or more EV platforms.” It is unclear at this time who that potential suitor may be.
Fisker also stated the potential deal could include North American manufacturing, teeing up the potential for Federal tax credits for consumers. The Ocean is currently being built in Austria by contract manufacturer Magna Steyr. Here are some more details per Fisker’s Q4 and full 2023 preliminary report:
To address potential liquidity issues, Fisker is already taking action. The company is currently in discussions with an existing noteholder about potentially making an additional investment in the company. The use of proceeds, if a transaction is consummated, is expected to be for general corporate purposes, vehicle production and the ongoing transition to a dealer-focused sales model. In addition, Fisker intends to reduce its workforce by approximately 15%. Headcount reductions are predominantly related to the change in sales strategy from direct-to-consumer to a Dealer Partner model. In addition, the company is streamlining operations, including reducing its physical footprint and overall expenses
Despite limited cash, Fisker is targeting building 20,000-24,000 EVs in 2024 at an average selling price between $56,000-$60,000 after import duties and dealer commissions. The American automaker hopes sales of its 2023 Oceans, already built and paid for, will provide funding through the first half of 2024 while it continues its negotiations with the unnamed OEM.
Electrek’s take
No comment just yet. We’ve already expressed plenty of doubt over the years.
Fisker still has a chance here, but it’s not looking good. We will report back with the latest news, good or bad.
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LiveWire, the electric motorcycle brand spun out of Harley-Davidson, has just announced its latest electric motorcycle model. The new LiveWire S2 Alpanista is built on the same platform as the brand’s last two models, leveraging the Arrow platform as a versatile foundation for several diverse bikes.
The Arrow platform first received its debut with the LiveWire S2 Del Mar, which was then followed by the S2 Mulholland.
LiveWire announced that a high-performance electric maxi-scooter would be produced on the Arrow platform, but not before the company rolled out the S2 Alpinista. “The Alpinista is LiveWire’s first sport standard,” explained the company, “equipped with 17” wheels and tires, blending the best of street, sport, and hyper-tourer characteristics.”
The recently unveiled S2 Alpinista is mechanically quite similar to the two previous models sharing the platform. The 10.5 kWh battery that serves as the main structure of the bike will offer a maximum range of 120 miles (193 km) per charge under city riding conditions. It can be recharged with a Level 2 charger from 20-80% in just 1 hour and 20 minutes.
The 433 lb (196 kg) bike can achieve a 0-60 mph (0-96 km/h) time of just 3.0 seconds, thanks to its powerful 63 kW (84 hp) motor. The S2 Alpinista can also reach an electronically limited top speed of 99 mph (159 km/h).
Priced at US $15,999 and already available at LiveWire dealerships in North America and Europe, the S2 Alpinista officially becomes the most affordable LiveWire electric motorcycle available to date, undercutting the $16,249 S2 Del Mar electric street tracker and the $16,499 Mulholland electric sport cruiser.
“Alpinista reimagines the S2 by combining the urban agility of a supermoto with the do-it-all nature of a touring bike, creating a practical and thrilling sport standard,” explained the brand.
The smaller 17″ wheels help reduce the seat height of the bike, and combined with the Dunlop Roadsmart IV tires, the street-optimized bike is ideal for “both daily commutes and spirited rides through winding roads.”
The S2 Alpinista comes with 6-axis IMU from Bosch providing cornering-enhanced antilock braking and cornering-enhanced traction control systems, in addition to four preset ride modes and two custom modes.
Now the third model launched on the Arrow platform, the S2 Alpanista underscores the versatility of LiveWire’s workhorse. The approach was intended to allow the e-motorcycle offshoot to quickly innovate with multiple styles of motorcycles all sharing key structural and drivetrain components. The move has largely been seen as an engineering success, with three models hitting the road in under three years. However, sales have yet to reach targets set by LiveWire as the more premium electric motorcycle industry has experienced a rocky few years.
As a LiveWire S2 Del Mar owner myself, I can attest to both the performance and enjoyable experience of bikes built on the platform, though I do find myself in a somewhat smaller community than LiveWire had likely hoped for. With the backing of its powerful older brother H-D, which retains a controlling stake in the company, LiveWire has enjoyed the relative freedom to cruise for its first few years and focus on motorcycle development and rollouts, with profitability hopefully coming over the horizon in due time.
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