Fisker Inc./DE (FSR)·Q1 2023 Earnings Summary

Executive Summary

• Q1 2023 was pre-revenue but operationally pivotal: first Ocean deliveries began in Europe, while U.S. deliveries were guided to start in June pending EPA/CARB approvals .
• Reported net loss of $120.6M and EPS of -$0.38; revenue was ~$0.198M, with both EPS and production guidance disappointing vs expectations; 2023 production guidance was cut to 32,000–36,000 from up to 42,400 previously, a key negative catalyst .
• Liquidity remained solid at quarter-end with cash and cash equivalents of $652.5M; management emphasized disciplined spend and a staged ramp (Q2: 1,400–1,700; Q3 ramp; ~6,000/month thereafter) .
• Demand indicators stayed constructive: Ocean/PEAR reservations and orders totaled “over 70,000” as of May 8, 2023; partnerships (e.g., Ample battery swap for fleets) and network expansion progressed, but homologation and supply-chain timing pushed production rightward .

What Went Well and What Went Wrong

• What Went Well

  • Initial customer deliveries commenced in Copenhagen and Munich, establishing delivery processes; “It has been a fantastic weekend to have kicked off customer deliveries and opened our flagship Lounge in Munich yesterday.” — Henrik Fisker .
  • Regulatory progress: U.S. EPA testing completed for Ocean Extreme with EPA/CARB approvals expected “later this month” (May), setting up U.S. deliveries in June .
  • Strategic ecosystem build: announced Ample battery-swapping partnership (fleet Ocean by Q1 2024) and European charging integrations (Deftpower, Allego), expanding customer access to 600k+ charging points across EU/NA .

• What Went Wrong

  • Financial miss: EPS (-$0.38) and minimal revenue (~$0.198M) disappointed; EBITDA remained negative with loss from operations of $121.6M; Street viewed production guidance reduction as a key negative .
  • Production plan shifted right due to homologation/supply-chain timing; FY23 production cut to 32k–36k units from up to 42,400, delaying scale benefits and margin ramp .
  • Elevated cash burn persisted: net cash used in operating activities of $83.7M and capex of $45.7M in Q1, though liquidity remained adequate to continue ramp .

Financial Results

KPIs (Demand, Production, Delivery)

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “It has been a fantastic weekend to have kicked off customer deliveries and opened our flagship Lounge in Munich yesterday.” — Henrik Fisker, CEO .
• “Four-stage supplier ramp up and vehicle assembly plan moves to right on updated homologation timing.” — Company statement in Q1 release .
• “Loss from operations totaled $121.6 million, which includes higher Q1 R&D expenses milestones that are not expected to repeat.” — Company disclosure .

Q&A Highlights

• Analysts focused on production ramp timing, homologation status, and supply chain readiness; management provided specificity (Q2 1,400–1,700; Q3 ramp; ~6,000/month thereafter) and confirmed U.S. deliveries timeline contingent on EPA/CARB .
• Demand clarity: reiterated >70k reservations/orders; discussed disciplined marketing and global retail footprint expansion (Vienna, Copenhagen, Munich showrooms; L.A. flagship) to support deliveries .
• Cost cadence: CFO/COO noted elevated Q1 R&D milestones not expected to repeat, implying potential opex normalization as ramp progresses .

Estimates Context

• S&P Global consensus data was unavailable due to mapping constraints (attempted retrieval failed). As a secondary reference, Zacks cited consensus EPS of -$0.28 and revenue of ~$$0.2M for Q1 2023; actual EPS was -$0.38 and revenue ~$0.198M, implying a miss on EPS and essentially in-line revenue scale but below expectations .
• Note: We attempted to pull S&P Global (SPGI) estimates via tool access, but the CIQ mapping for FSR was missing; therefore, formal S&P consensus comparisons are not available in this report.

Key Takeaways for Investors

• Guidance reset is the key stock narrative: FY23 production cut to 32k–36k shifts the scale/margin ramp right and tempers near-term expectations; watch homologation milestones and supplier delivery cadence as critical drivers .
• Liquidity remains adequate for ramp with $652.5M cash; however, continued opex and capex outflows ($83.7M and $45.7M in Q1) necessitate disciplined execution to reach positive adjusted EBITDA targets .
• Early deliveries and U.S. market entry in June are catalysts for demand validation; monitor throughput of delivery infrastructure and last-mile logistics to translate reservations into revenue .
• Ecosystem partnerships (charging, battery swapping) and retail footprint expansion support customer experience and could enhance fleet adoption; track fleet-related battery swap pilots and their economics .
• Demand signals remain constructive (>70k reservations/orders), but supply chain and regulatory timing drive near-term delivery cadence; a consistent monthly run-rate and U.S. approvals are pivotal for investor confidence .
• Near-term trading: sentiment hinges on execution against the revised ramp and confirmation of U.S. deliveries; any slippage vs Q2/Q3 ramp or additional guidance cuts likely pressure the stock, while on-time approvals and delivery scaling could support a relief rally .
• Medium-term thesis: achieving 8–12% gross margin and potentially positive adjusted EBITDA in 2023 requires rapid operational normalization and scale; monitoring cost per unit, warranty/quality metrics, and software feature rollouts will be essential .