Shares of Fisker Inc. bounced Friday after the electric-vehicle maker said it decided to cut December production to free up more than $ 300 million of liquidity.
The company FSR, -11.24% said it now expects 2023 production of just over 10,000 vehicles, compared with guidance provided in mid-November of 13,000 to 17,000 vehicles.
“Fisker has made a strategic decision to reduce December production to prioritize liquidity to unlock over $ 300 million of working capital, which creates additional business flexibility,” the EV maker said in a statement.
The stock jumped 7% in premarket trading, after closing Thursday at a record low of $ 1.58. The stock had plunged 64.9% in November, the biggest monthly drop since it started trading in October 2020 following the merger with a special-purpose acquisition company.
The stock’s weakness in November was highlighted by Fisker’s downbeat third-quarter quarter report, which included a wider-than-expected loss and revenue that was well below forecasts.
“We may not have hit our original forecast but taking current market conditions and negative sentiments around EV sales into account, I would say we are doing quite well, as we continue to accelerate sales and deliveries,” Chief Executive Henrik Fisker said Friday.
After delivering 1,097 vehicles in the third quarter, the company said it delivered over 1,200 vehicles in October and, as of mid-November, was on track to deliver more vehicles in November than in October.
Separately, the company also provided a “business update” on Friday. Fisker said it has executed a new strategy on deliveries, as it has overcome “logistics hurdles,” expects to start marking deliveries in Canada next week, is launching a leasing offering in 2024 and is in advanced discussions with several automakers regarding strategic partnerships.
The stock has plunged 73.5% over the past three months through Thursday, while the Global X Autonomous & Electric Vehicles ETF DRIV, -0.43% has lost 7.9% and the S&P 500 SPX, +0.38% has gained 1.2%.