Fisker (US:FSR)2023-02-28 16:00Production and Sales - Fisker commenced production of the Fisker Ocean in November 2022, with approximately 65,000 reservations and orders received as of February 24, 2023[320]. - The Fisker Ocean targets the "premium with volume" segment of the electric SUV market, aiming to produce over 100,000 units of a single model[309]. - Fisker expects to begin serial production of the Fisker Ocean in late Q1 2023, following necessary regulatory approvals[320]. - Fisker began production in November 2022 and currently does not generate any revenue from vehicle sales, expecting the majority of its revenue in 2023 to come from direct sales of Fisker Ocean SUVs[327]. - Fisker expects to expand its global operations significantly, including in the USA, EU, India, and China, once it commences commercial operations[325]. Financial Performance - The net loss for Fisker was $547.5 million for the year ended December 31, 2022, an increase of 16.2% from a net loss of $471.3 million in 2021[342]. - Revenue for the year ended December 31, 2022, was $342 million, a significant increase from $106 million in 2021[398]. - The net loss attributable to common shareholders for 2022 was $547.5 million, compared to a net loss of $471.3 million in 2021[398]. - Basic and diluted net loss per share for 2022 was $1.80, compared to $1.61 in 2021[398]. - The company has incurred significant accumulated losses of approximately $1.2 billion since inception and expects to continue incurring significant operating losses for the foreseeable future[412]. Expenses and Investments - For the year ended December 31, 2023, Fisker expects selling, general and administrative expenses to be in the range of $130-$160 million, up from $106.4 million in 2022, reflecting increased personnel and marketing investments[330]. - Research and development expenses for 2023 are expected to be between $160-$190 million, a significant decrease from $423.9 million in 2022, as the company moves towards serial production[331]. - Total operating costs and expenses rose to $530.3 million in 2022, up from $329.3 million in 2021, primarily driven by increased research and development expenses[398]. - Cash used in investing activities was $201.0 million in 2022, compared to $134.4 million in 2021, indicating a significant increase in capital expenditures[352]. - Fisker expects capital expenditures for 2023 to range between $245 million and $260 million, with at least 50% denominated in foreign currencies[351]. Cash Flow and Liquidity - As of December 31, 2022, Fisker had cash and cash equivalents of $736.5 million, which is unrestricted and available for general use[344]. - Net cash used in operating activities increased to $452.5 million in 2022 from $301.3 million in 2021, reflecting a rise of approximately 151.2 million[350]. - The company may need additional cash resources, including proceeds from the sale of up to $156.5 million of Class A common stock, to fund operations until serial production begins[347]. - The net cash provided by financing activities in 2022 was $187.6 million, a decrease from $646.9 million in 2021[404]. - The company anticipates capital expenditures and working capital requirements to increase substantially in 2023 as it progresses toward serial production of the Fisker Ocean EV model[412]. Sustainability and Innovation - Fisker aims to produce vehicles with over 90% recyclability and emphasizes sustainability in its manufacturing processes, including production in a carbon-neutral factory[309]. - Fisker plans to leverage its proprietary Flexee app for direct-to-consumer sales, enhancing customer experience through digital financing options and service management[321]. - The company believes its innovative business model will provide higher margins compared to competitors by focusing on customer experience and digital sales[310]. - Fisker has secured an agreement with a battery supplier to deliver an initial battery capacity of over 5 gigawatt-hours annually for the Fisker Ocean SUV from 2023 through 2025[413]. Partnerships and Agreements - The company has established partnerships with leading tier-one automotive suppliers, including Magna, to reduce capital intensity and accelerate vehicle development[313][316]. - Fisker has entered into a Cooperation Agreement with Magna for the development of its proprietary FM29 Platform, which will support the Fisker Ocean and future models[313]. - The company entered into a purchase agreement for $667.5 million principal amount of convertible senior notes due in 2026, with net proceeds of $562.2 million after costs[346]. Market Position and Growth - The electric vehicle market is projected to grow from 3% of global auto sales in 2020 to over 30% by 2030, with Fisker positioned to capture a significant share[318]. - Fisker intends to offer flexible leasing options as part of its financing solutions to increase consumer adoption of electric vehicles[322].