Fisker Q4 report: ‘Substantial doubt’ it can continue, seeks investment from ‘large automaker’

Published

3 months ago

March 1, 2024

admin

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.

FTC: We use income earning auto affiliate links. More.

Environment

In April, Tesla prices were higher month-over-month but lower year-over-year

Published

6 hours ago

May 15, 2024

admin

In April, Tesla prices were higher month-over-month but lower year-over-year

Tesla posted larger-than-average ATP (average transaction price) increases month-over-month in April, but its prices were lower year-over-year, reports Kelley Blue Book.

April saw Tesla post a month-over-month ATP increase of 5.7% compared to March, but the EV giant’s prices were lower year-over-year by 3.3%, according to EV transaction price data from Kelley Blue Book’s newly released April Average Transaction Price report.

Tesla prices have been a key driver of volatile price dynamics in both the luxury and EV markets because it’s the highest-volume seller in both segments. Tesla prices plummeted from $62,269 in January 2023 to $50,099 in December 2023, a decline of 19.5%.

EV transaction prices in April were essentially flat compared to March – up roughly 0.1% – at $55,252, an increase of only $75 from the prior month. Year-over-year, the average transaction price for an EV was down 8.5%, thanks in part to price pressure on EVs driven by slowing sales, healthy inventory, and more competition.

EV incentive packages remain well above the industry average, in many cases more than 15-20% of the average transaction price.

Some popular EVs posted significant year-over-year price reductions in April – Ford F-150 Lightning’s transaction prices were down 23%, Ford Mustang Mach-e’s were down 15%, Tesla Model Ys were down 12%, and Hyundai Ioniq 6s were down 10%.

However, most EVs presently transact for prices lower than a year ago by approximately 4-5%.

To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. – ad*

FTC: We use income earning auto affiliate links. More.

Environment

BYD launches new Shark PHEV as its first pickup to rival Toyota’s Hilux, Ford Ranger

Published

6 hours ago

May 15, 2024

admin

BYD launches new Shark PHEV as its first pickup to rival Toyota's Hilux, Ford Ranger

A new electrified pickup is hitting the global market. China’s BYD introduced its new Shark plug-in hybrid (PHEV) pickup in Mexico this week. The new BYD Shark is poised to compete against top-selling trucks globally, like the Toyota Hilux and Ford Ranger.

BYD confirmed its first electrified pickup will be called the Shark last month after years of speculation.

The pickup was spotted for the first time by CarNewsChina at BYD’s facility in November 2022, and the anticipation has been building ever since. We’ve seen leaked patents giving away the design, prototype testing, and more, but the Shark is finally officially here.

BYD introduced the Shark PHEV pickup in Mexico at an overnight launch event. The hybrid pickup will be available in two variants: the GL and GS.

The base GL starts at 899,980 pesos ($53,400), while the GS costs 969,800 pesos ($58,100). Based on BYD’s DMO platform, the Shark features 170 kW (228 hp) front and 150 kW (201 hp) rear motors.

With 429 combined hp, the hybrid truck can sprint from 0 to 62 mph (0 to 100 km/h) in 5.7 seconds. Powered by a 29.58 kWh BYD Blade battery, the Shark has all-electric NEDC range of 100 km (62 mi). Combined NEDC range is 840 km (522 mi).

Meet BYD’s first pickup, the Shark plug-in hybrid

According to BYD, the Shark has low charge fuel consumption of 7.5 L per 100 km, which is 40% lower than that of full gas-powered engine pickups.

At 5,457 mm long, 1,971 mm wide, and 1,925 mm tall, the BYD Shark will directly rival top-selling trucks like the Toyota Hilux (5,325 mm long X 1,855 mm wide X 1,815 mm tall) and Ford Ranger (5,370 mm long X 1,918 mm wide X 1,884 mm tall).

BYD’s new pickup has up to 5,512 lbs (2,500 kg) towing capacity and 1,841 lbs (835 kg) max payload.

Inside, you can see other BYD design features, such as a rotatable 12.8″ center screen and 10.25″ instrument panel.

BYD America CEO Stella Li confirmed the company has no plans to sell the Shark, or any passenger EV (BYD already sells electric buses in the US), in the US. Meanwhile, BYD does plan to take the Shark globally.

[embedded content]

BYD Shark PHEV pickup (Source: BYD)

A right-hand drive prototype was spotted testing in Australia earlier this year, suggesting it could launch there soon. Other global markets will likely include Thailand, South Africa, and parts of Europe. Stay tuned for more info on the BYD Shark as it hits new markets.

Source: CnEVPost, BYD

FTC: We use income earning auto affiliate links. More.

Environment

Oakland is now first in the US to have a 100% electric school bus fleet – and it’s V2G

Published

7 hours ago

May 15, 2024

admin

Oakland is now first in the US to have a 100% electric school bus fleet – and it's V2G

Oakland electric school bus — Photo: Zum

An Oakland, California, school district is the first in the US to transition to a 100% electric school bus system with vehicle-to-grid (V2G) technology.

Modern student transportation platform Zum has provided Oakland Unified School District with a fleet of 74 electric school buses and bidirectional chargers. Utility Pacific Gas and Electric (PG&E) supplied 2.7 megawatts (MW) of load to Zum’s Oakland EV-ready facility. The fleet will be managed through Zum’s AI-enabled technology platform.

“Oakland becoming the first in the nation to have a 100% electric school bus fleet is a huge win for the Oakland community and the nation as a whole,” said Kim Raney, executive director of transportation at Oakland Unified School District. “The families of Oakland are disproportionately disadvantaged and affected by high rates of asthma and exposure to air pollution from diesel fuels.”

The 100% electric school bus fleet is not only emissions-free but also plays a critical dual role as a Virtual Power Plant (VPP), giving 2.1 gigawatt hours (GWh) of energy back to the power grid at scale annually. Here’s how it works:

[embedded content]

Student transportation is the largest mass transit system in the United States, moving 27 million students twice daily. Today, over 90% of the US’s 500,000 school buses run on carbon-based fuels, releasing over 8.4 million tons of greenhouse gases annually.

Zum, which already has a presence in 14 states, says its next step is to electrify the school bus fleets of San Francisco Unified and Los Angeles Unified school districts, which have fleets three and six times the size of Zum’s Oakland fleet, respectively.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. – ad*

FTC: We use income earning auto affiliate links. More.