EV start-up Fisker is thrilled to announce the expansion of its delivery operations for the Ocean SUV into three additional European countries. The news has been received positively by investors, who believe this is an important step for Fisker's growth.
Fisker (ticker: FSR) revealed that it will now begin deliveries in Belgium, the Netherlands, and Switzerland starting from September. This move follows the company's successful launches in Austria, Denmark, France, Germany, Norway, Sweden, the U.K., Canada, and the U.S.
Henrik Fisker, CEO of the company, expressed his excitement for venturing into new European markets. He stated, "Ultimately, we want to sell our vehicles all over the world, but creating a strong early presence in Europe has always been one of our highest priorities."
In premarket trading on Monday, Fisker stock witnessed a 0.7% increase, reaching $5.85 a share. Additionally, S&P 500 and Nasdaq Composite futures saw gains of 0.1% and 0.2% respectively.
However, Fisker and its partner Magna International (MGA) faced some production challenges in the second quarter. Out of the planned 1,400 to 1,700 Ocean SUVs, only 1,022 were produced due to supply chain issues. Unfortunately, only 11 vehicles were delivered to European customers during this time.
Looking ahead, Fisker aims to produce 20,000 to 23,000 units in 2023. This is a decrease compared to the initial production range projection of 32,000 to 36,000 vehicles announced in May. February estimates had set the production range at 42,000 to 43,000 units for 2023. The company attributes the reduction in production guidance to supply-chain problems.
These production cuts have impacted the company's stock performance. As of now, Fisker stock has experienced a decline of approximately 20% since the beginning of the year and roughly 10% over the past three months.
However, Wall Street analysts anticipate a boost in sales, with projected revenues of around $860 million for the second half of 2023. Sales are expected to continue rising and reach approximately $3 billion in 2024.
These revenue projections are mainly driven by the sales of the Ocean SUV. Fisker's second vehicle, known as the Pear, is set to begin production in 2025. While the Ocean is manufactured by Magna, the Pear will be built by Hon Hai Precision Industry (2317.Taiwan), more commonly known as Foxconn.
Potential buyers can expect the Pear to have a starting price of approximately $30,000, while the Ocean starts at $38,000.
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