Shares of Fisker Inc. (FSR) saw a 5.7% increase in premarket trading on Friday after the electric vehicle manufacturer announced plans to cut December production. This strategic move aims to free up more than $300 million in liquidity.
Revised Production Outlook for 2023
Fisker now expects its 2023 production to reach just over 10,000 units, a departure from the previous guidance given in mid-November, which projected production between 13,000 and 17,000 vehicles.
Promising Delivery Strategy Developments
In addition to the production adjustments, Fisker also disclosed exciting developments in its delivery strategy. The company has successfully overcome previous "logistics hurdles" and is preparing to commence deliveries in Canada next week. Moreover, Fisker plans to introduce a leasing offering in 2024. These positive strides are further strengthened by ongoing discussions with several prominent automakers regarding potential strategic partnerships.
Recent Stock Performance
Despite this optimistic news, Fisker's stock has experienced a steep decline of 73.5% over the past three months, up until Thursday. In comparison, the Global X Autonomous & Electric Vehicles ETF (DRIV) has suffered a 7.9% loss during the same period, while the S&P 500 (SPX) has witnessed a modest 1.2% gain.
Fisker Inc.'s decisive actions aimed at bolstering liquidity and refining its delivery strategy demonstrate the company's commitment to overcoming challenges and positioning itself for future success in the electric vehicle market.