A few years after electric vehicles seemed poised to dominate the automotive industry, the stock market has sharply turned. Now, investing in electric vehicle stocks is an exercise in pain tolerance. While Tesla’s (NASDAQ:TSLA) recent earnings commentary propelled the EV market higher (it certainly wasn’t the company’s numbers, which were abysmal), most other EV companies are struggling. Many high-potential but early-stage EV makers are now forced to resort to massive debt or equity issuances to stay alive. ...

The EV sector continues to undergo a period of extreme difficulty. EV sales growth is slowing, adoption rates are not as high as they once were, and global demand has weakened severely. All of those factors suggest that investors should purge their portfolios of these EV stocks to sell.It’s still too far too early to even begin to suggest that the EV experiment has failed. It almost certainly hasn’t. The current state of the industry is well explained by Roger’s Innovation Adoption Curve. While the broader ...

Financial Performance - The Company reported revenues of $272.9 million for the year ended December 31, 2023, primarily from electric vehicle sales and related services [439]. - Total revenue for 2023 was $272,883 thousand, a significant increase from $342 thousand in 2022 [446]. - The net loss for Fisker Inc. in 2023 was $939.9 million, compared to a net loss of $547.5 million in 2022, representing an increase of 71.4% year-over-year [450]. - The company reported a basic and diluted net loss per share of $(2.73) for 2023, compared to $(1.80) in 2022 [446]. - The Company's income/(loss) before provision for income taxes was $(938.6) million for the year ended December 31, 2023, compared to $(547.3) million in 2022 [609]. Inventory and Assets - The Company's inventory balance as of December 31, 2023, was $406.5 million, with a write-down of total inventory to net realizable value totaling $232.7 million [436]. - The Company recorded a significant inventory write-down of $233.9 million in 2023, indicating potential challenges in inventory management [450]. - Total assets increased to $1,831,687 thousand in 2023 from $1,515,426 thousand in 2022, reflecting growth in the company's asset base [444]. - The total inventory as of December 31, 2023, was $406.5 million, a substantial increase from $4.3 million in 2022 [530]. Liabilities and Equity - Current liabilities rose to $902,629 thousand in 2023, up from $330,881 thousand in 2022, indicating increased short-term obligations [444]. - Stockholders' equity decreased to $(98,082) thousand in 2023 from $480,505 thousand in 2022, highlighting a decline in shareholder value [444]. - The Company did not make a required interest payment in March 2024, raising substantial doubt about its ability to continue as a going concern [428]. Operating Expenses - Cost of goods sold for 2023 was $558,821 thousand, resulting in a gross margin of $(285,938) thousand [446]. - Operating expenses totaled $316,517 thousand in 2023, compared to $530,324 thousand in 2022, indicating a reduction in operating costs [446]. - Research and development expenses were $67,357 thousand in 2023, down from $423,907 thousand in 2022, suggesting a shift in investment strategy [446]. Cash Flow and Financing - Cash and cash equivalents decreased to $325,452 thousand in 2023 from $736,549 thousand in 2022, indicating a reduction in liquidity [444]. - Proceeds from the issuance of convertible notes amounted to $450 million in 2023, contributing to the net cash provided by financing activities of $565.7 million [450]. - The company incurred cash paid for interest totaling $16.7 million in 2023, slightly down from $18 million in 2022 [451]. - Fisker Inc. is currently seeking additional financing and restructuring its debt obligations due to substantial doubt about its ability to continue as a going concern [464]. Revenue Recognition - The Company recognizes revenue from over-the-air software updates ratably over the warranty term, impacting revenue timing [439]. - Customer deposits for vehicle orders are generally non-refundable and are recognized as revenue upon delivery of the vehicle [478]. - The company recognized deferred revenue of $45.6 million as of December 31, 2023, with expectations to recognize $19.9 million of this revenue in the next 12 months [475]. Market and Economic Conditions - The Company expects inflationary pressure to persist, impacting manufacturing costs related to key components and labor [417]. - The Company anticipates that inflation will continue to affect its cost structure in the foreseeable future [417]. - The Company has not hedged its foreign currency exposure, which may result in exchange losses due to fluctuations in currencies like the Euro [415]. Internal Controls and Compliance - Material weaknesses in internal control over financial reporting were identified, affecting the reliability of financial statements [426]. - The Company has determined that it operates in one reportable segment, with financial information reviewed on a consolidated basis [505]. Stock and Compensation - Stock-based compensation expense totaled $8.2 million for the year ended December 31, 2023, a decrease of 58.3% from $19.6 million in 2022 [594]. - The total unrecognized compensation related to unvested stock option awards was $22.2 million, expected to be recognized over approximately 3.3 years [601]. - The Company has not declared or paid cash dividends and does not plan to do so in the foreseeable future [599].

With electric vehicle (EV) startup Fisker (OTCMKTS:FSRN) seemingly flirting with bankruptcy and Fisker stock trading around 6 cents, Wall Street is souring on its manufacturing partner, Magna International (NYSE:MGA). Specifically, one investment bank just downgraded MGA stock yesterday.Here’s what investors should know about the development.MGA Stock: Why Magna Was DowngradedInvestment bank Evercore ISI just cut its rating on MGA stock to “in-line” from “outperform.” Analyst Chris McNally noted that Magna ...

To describe Fisker’s (OTCMKTS:FSRN) recent saga as a rollercoaster ride would be an understatement. That includes today’s performance for Fisker stock.Last month, the New York Stock Exchange notified the struggling electric vehicle (EV) producer that shares would be delisted. After failing to trade above the $1 level, it seemed like Fisker’s run had come to an end. The possibility of bankruptcy has loomed large over Fisker stock in recent months, pushing shares down significantly. But today, shares closed t ...

Fisker (OTCMKTS:FSRN) is bankrupt in all but name only. The company hangs on by the slimmest of threads that only a miracle bailout can save while Fisker stock is a literal penny stock trading at 2 cents per share on the over-the-counter exchanges.It is a mighty fall for a company that went public less than four years ago in a $2.9 billion special purpose acquisition company merger. Fisker is one of the few companies that got two bites at the apple and dramatically failed both times. Yet, does that make it ...

Henrik Fisker’s second chance at an automotive company isn’t going so well. After founding Fisker Automotive in 2007 and releasing the Fisker Karma, he watched his first shot file for bankruptcy in 2013. Now, Fisker (OTCMKTS:FSRN) is at risk of experiencing the same fate.Fisker began trading in late 2020 following a SPAC merger valued at $2.9 billion. In its SPAC presentation, the electric vehicle company guided for 2023 revenue of $3.3 billion. Its preliminary 2023 revenue turned out to be $272.9 million, ...

It’s been an extremely rough 2024 for Fisker (OTCMKTS:FSRN) stock, as the pure-play electric vehicle (EV) company has struggled with a wide variety of issues.In its preliminary earnings, Fisker disclosed that it produced 10,193 Oceans while delivering only 4,929 of them, signaling a demand problem. Last month, the company announced that it would pause production for six weeks starting from March 18 to correct its inventory. Now, a report claims that the issue isn’t getting any better.According to Business I ...

Nio certainly faces challenges -- as do most EV start-ups currently.While the automotive industry is still embracing an electric future, the pace at which U.S. automakers are heading in that direction has slowed. A lack of affordable electric vehicle (EV) options, high interest rates making big purchases less affordable, and a saturated high-price EV market have all but stalled sales momentum.Those conditions will put immense pressure on unprofitable start-up EV makers and will almost certainly bring some i ...

Fisker (OTCMKTS:FSRN) stock is perhaps one of the saddest stories we’ve seen from the multi-year bull run in EV stocks. Today, Fisker stock is plunging another 16% to a little more than 1 cent per share. It could be one of the most well-known penny stocks in the market. Despite an intriguing brand and a well-priced electric SUV, Fisker’s recent troubles have compounded. Various macro and sector-specific concerns have hit most EV makers in recent months. But for Fisker, a lack of funding and a delisting from ...