Shares of Fisker (NYSE:FSR) plunged 14.8% in extended trade yesterday after missing third-quarter expectations. The electric vehicle (EV) start-up posted a diluted loss of $0.27 per share, worse than analysts’ estimates of $0.23 per share. Although Q3FY23 was the first quarter with meaningful sales for the automaker, its reported revenue of $71.80 million came in significantly lower than the consensus of $143.1 million. In the prior-year quarter, Fisker posted a diluted loss of $0.49 per share on revenues of $0.014 million.
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Fisker delivered 1,097 Ocean electric SUVs of the 4,725 vehicles produced in Q3. The deliveries have bolstered in the ongoing quarter, with 1,200 Oceans sold in October alone. Fisker was originally scheduled to report its Q3FY23 results on November 8. However, the departure of its chief accounting officer the previous week led to a delay in the “completion of the financial statements and related disclosures.”
As with many other EV companies, Fisker faces heated competition in this space. To deal with the price war, Fisker recently slashed the prices of its EVs. The company is expanding its delivery infrastructure to fast-track its EV deliveries and meet its targets in Q4 and beyond. Plus, the company is entering new markets and opening more stores in existing markets to ramp up its deliveries.
Is Fisker a Buy or Sell?
Following the Q3 print, TD Cowen analyst Jeff Osborne reiterated a Buy rating on FSR stock with a price target of $11 (167.6% upside).
With two other analysts sharing the same sentiment, FSR has a Strong Buy consensus rating on TipRanks. Also, the average Fisker price forecast of $9.67 implies 135.3% upside potential from current levels. Meanwhile, year-to-date, FSR stock has lost 40.3%.
