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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 dealer
Source: Fisker Inc.

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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Oregon law seeks to ban many street-legal electric bicycles from bike lanes

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Oregon law seeks to ban many street-legal electric bicycles from bike lanes

A new bill submitted to the Oregon Legislative Assembly seeks to ban street-legal Class 3 electric bicycles from bike lanes in the state.

Class 3 electric bicycles include those that can reach motor-assisted speeds of up to 28 mph (45 km/h), whereas Class 1 and 2 electric bicycles can only reach 20 mph (32 km/h) under motor assist.

Under Senate Bill 471, the proposed legislation would make it an offense if a rider “operates a moped or a Class 3 electric assisted bicycle upon a sidewalk, a bicycle path or a bicycle lane.” Under Oregon law, traditional pedal bicycles can be legally operated on sidewalks unless restricted by a local ordinance, but e-bikes are already banned from operating on sidewalks.

Thus, the proposed legislation is effectively a ban on electric bikes capable of speeds exceeding 20 mph from being used in bike lanes. Instead, such bikes would only be permitted for use on public roadways.

tern quick haul
E-bikes like this Tern Quick Haul could be banned in Oregon bike lanes under proposed new legislation

In addition, Section 2 of the bill seeks to remove key protections for cyclists operating such 20+ mph electric bikes in bike lanes. Under current law, a motorist can be cited for failing to yield right of way to a cyclist in a bike lane when the motorist crosses over the bike lane, such as when crossing into a driveway, parking lot, etc.

The proposed legislation would remove the requirement for motorists to yield the right of way to cyclists on Class 3 e-bikes in bike lanes.

It should be noted that drivers cannot visually distinguish a Class 3 e-bike from other classes of e-bikes being ridden in a bike lane because the difference is performance-based.

Electrek’s Take

Sure, I support this law, as long as we can apply the logic equally. If the logic goes that Class 3 (28 mph maximum) e-bikes have the ability to be ridden faster than much of the traffic flow in a bike lane and thus should be banned in such bike lanes, then we might as well just ban cars capable of highway speeds from being operated on city streets. “Can your car go faster than 40 mph? Sorry, you know the rules. Keep that thing off city streets.”

It makes sense, right? Same logic. If it *can* go faster, it shouldn’t be allowed to operate there at all.

I mean, if a 60 lb e-bike that has the potential to go 8 mph faster than another e-bike is such a menace to public health and safety, then oh lordy what must we think of 5,000 lb vehicles that can easily exceed 120 mph with just a two-inch deviation of a distracted driver’s big toe? Surely we’ll be kicking those out of cities any day now, right? Right, guys? Guys…?

Ok, let’s get serious now. This law is awful and the legislators that conjured it up should be put on a 21 mph bicycle and forced to spend a couple minutes riding with their handlebar inches from 40+ mph cars to truly understand what real danger is. Then let’s hear them try to tell us how it’s a Class 3 e-bike that is the true danger.

I’m not trying to say that we should completely ignore that sometimes people get hit by an e-bike. It happens. It has even been lethal on exceedingly rare occasions. But you know what happens on regular occasions? Cyclists and pedestrians getting hit and killed by cars. So instead of spending legislative effort trying to push e-bikes back out onto roads, maybe we should expend some effort keeping car fenders off of cyclists’ bodies. Or invest in more bike lanes. Or increase enforcement of traffic violations for all road users. Or increase awareness education for drivers and riders alike. There are so many good answers, but none of them can be found in this bill.

rayvolt exxite XS electric bike ride commute

via: KMTR

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U.S. sanctions on Russia hit oil freight rates

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U.S. sanctions on Russia hit oil freight rates

Aerial view of a ship at sea.

Suriyapong Thongsawang | Moment | Getty Images

Oil-linked shipping costs rallied after last week’s announcement of tighter U.S. sanctions to drain Russia’s war coffers, in a move that poses significant threats to Moscow’s maritime distribution chains.  

On Jan. 10, the U.S. Treasury Department announced fresh measures to deplete Russia’s energy revenues, including sanctions against key producers Gazprom Neft and Surgutneftegas, along with 183 vessels that were “largely oil tankers that are part of the shadow fleet as well as oil tankers owned by Russia-based fleet operators.”

The Treasury added that several of the designated tankers had transported both Russian and Iranian oil, and further extended sanctions to Russia-based maritime insurance providers Ingosstrakh Insurance Company and AlfaStrakhovanie Group.

This is set to deliver a critical blow to Russia, which has been forced to reroute its crude and oil product supplies to Asia-Pacific, after these volumes were banned by European and G7 sanctions, which came in effect in December 2022 and February 2023, respectively.

Already, around 890 unique tankers loaded Russian oil — comprising both crude and oil products — in the past six months, analytics firm Vortexa told CNBC on Jan. 7, with 107 of these ships — or 12% of the total — being subject to vessel-specific sanctions at the time.

The figures do not factor in the Jan. 10 announcement. On Wednesday, the Paris-based International Energy Agency assessed that around 160 out of the 183 blocked tankers had moved over 1.6 million barrels per day of Russian oil last year, accounting for 22% of Russian seaborne exports over the period.

The latest U.S. measures are also set to tighten the number of vessels available for the commission of non-Russian parties, pushing up shipping costs for other tankers. Since the Jan. 10 announcement, the effect of the bans has spilled into freight derivatives, with the volume of traded Forward Freight Agreement (FFA) contracts — which can allow traders to hedge against volatility in fluctuating freight rates – jumping to 11,412 on Jan. 10, and topping 7,900 and 6,700 on Jan. 13 and Jan. 14, respectively, according to data from the Baltic Exchange. The figures compare with 2,987 and 1,683 contracts traded daily on average in the months of November and December, respectively.

Rates for supertankers crossing from the Middle East Gulf to Asia-Pacific — a bellwether route for the oil industry — picked up by more than 40% between Jan. 9 and Jan. 14, according to pricing data from Argus Media.

As a result, the sanctions “could significantly disrupt Russian oil supply and distribution chains,” the IEA warned, noting that Russian exports will “take a hit from the shadow tanker fleet reduction” and the “elimination of shipping insurance, the bridling of dominant traders of Russian oil and designation of key handling companies in consumer markets.”

The agency nevertheless fell short of factoring the latest U.S. steps into its Russian supply forecasts, while noting that crude exports from the Eastern European country – a key member of the OPEC+ alliance – fell by 250,000 barrels per day month-on-month to 4.6 million barrels per day in December.

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Polestar expects profits in 2025 with 5 GT launch, confirms Polestar 7 will be an entry level compact SUV

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Polestar expects profits in 2025 with 5 GT launch, confirms Polestar 7 will be an entry level compact SUV

Swedish and Chinese EV automaker Polestar has shared an updated business strategy, looking to 2025 and beyond as its next chapter in growth. Per the release detailed below, Polestar is expecting increased sales volume, especially as its long-promised Polestar 5 GT is set to launch this year. Additionally, the automaker confirmed its Polestar 7 model will be a compact SUV and its most affordable BEV to date.

Polestar remains a growing name in the EV segment, and more and more people are becoming aware of the Geely-owned brand as it brings more models to market. Its two most recent were the Polestar 3 SUV and 4 crossover, built in the US and China, respectively. According to Polestar, those two models have gained “strong product momentum,” accounting for 56% of orders in Q4 2024.

Polestar looks to ride that wave into 2025 and add to its impetus with the launch of the Polestar 5, a sports sedan based on the automaker’s Precept concept EV that is targeting up to 884 hp and will attempt to compete against some of the big boys, like the Tesla Model S and Porsche Taycan.

While it won’t be part of Polestar’s 2025 launches, the automaker’s executives have divulged some new details about a new model called the Polestar 7, which was teased back in April 2024.

Polestar 7
Source: Polestar

Polestar 7 to replace the 2 as its entry-level model

According to a release published on its investor page, Polestar expects a fruitful 2025 that will set the town for its revamped business strategy through at least 2027. Per the automaker, it is targeting compound annual retail sales volume growth of 30-35% over the next three years and positive adjusted EBITDA in 2025. Furthermore, Polestar executives expect positive free cash flow after investments in 2027. Polestar CEO Michael Lohscheller elaborated:

With Scandinavian design, performance and a premium brand, Polestar has successfully positioned itself in the global automotive market. We have three outstanding cars on the road and a growing, passionate customer base.We are building on the strong Polestar brand with design and performance at its core.

But significant changes are needed to make this well-respected progressive brand a successful and viable business. We are speeding up our retail expansion and commercial transformation, whilst adjusting our future model line-up and significantly reducing our cost base. Both in terms of volumes and financials, we expect 2025 to be the strongest year in Polestar’s history.

Part of Polestar’s success in 2025 will depend on the start of sales of the Polestar 5, the automaker’s first model to sit atop an 800V platform. According to the company, that launch is expected in the second half of this year. Until then, Polestar will continue to push sales of its current lineup, which consists of the Polestar 2, 3, and 4.

While the Polestar 2 will be remembered as the BEV that put the brand on the map, its days are unfortunately numbered. Previous Polestar CEO Thomas Ingenlath said the company intends to phase out the 2 sedans around 2027, and its successor will be a new model called the Polestar 7.

We hadn’t heard much about the Polestar 7 since then, but the company confirmed today that it will arrive as a premium compact SUV. Additionally, we’ve learned the Polestar 7 will be the brand’s first model built in Europe. With production footprints in China, South Korea, and the US, Europe is a natural next step in expansion, especially for an affordable, compact SUV the Polestar 7 promises to be, because that is such a popular segment in the EU.

The Polestar 7 will also represent a new design strategy for the automaker. From that launch onward, it will “gradually move from a multi-platform approach to one single architecture, reducing complexity, costs, and investments.”

While we’ve learned what style of BEV the Polestar 7 will be, we don’t know much else at this point. With the expectation that we won’t see anything come to market until 2027 at the earliest, our immediate focus will remain on the upcoming launch of the Polestar 5 in 2025, followed by the Polestar 6 roadster convertible in 2026.

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