EV stock Fisker opened 15% down on Tuesday: what happened?

Fisker Inc (NYSE: FSR) opened about 15% down on Tuesday after reporting a wider than expected loss for its first financial quarter.

Fisker stock down on production guidance

The EV stock is under pressure because the management lowered production guidance as well.

Fisker now expects to make between 32,000 and 36,000 vehicles this year. In February, it had guided for up to 43,000 instead. On CNBC’s “Squawk Box”, CEO Henrik Fisker said:

Issues we’ve had [include] a hardware supplied which went bankrupt only three weeks ago. We had to go in and get the tools out, which we successfully did only last week.

In the second quarter, production is seen keeping in the range of 1,400 vehicles to 1,700 vehicles. Year-to-date, Fisker stock is now down nearly 20%.

Should you invest in this EV stock?

On the plus side, Fisker expects a significant increase in production to roughly 6,000 vehicles per month in the final quarter of the year. The chief executive added:

I think that’s a record for any EV startup at any point in time in the first year of production.

He also brushed off a recent Bloomberg report that Fisker Ocean is struggling with a software issue as incorrect. The California-based company delayed its next vehicle “PEAR” to 2025 today.

Wall Street currently has a consensus “hold” rating on this EV stock.

Fisker Q1 financial highlights

Lost $120.6 million versus the year-ago $122.1 million
Per-share loss also declined from 41 cents to 38 cents
Revenue shot up year-on-year from $12,000 to $198,000
Consensus was 31 cents loss on $5.3 million in revenue
Ended the quarter with roughly $650 million in cash

Fisker started deliveries to European customers this month and U.S. sales are scheduled to begin in June. CEO Fisker noted:

We just delivered our first couple of cars. We are now moving from a startup company to an actual revenue generating car company. Our results are strong [considering] certification took many months more than expected.

Fisker expects up to $260 million of capital expenditures in 2023, as per its earnings press release.