Fisker (US:FSR)2023-02-27 18:32Financial Data and Key Metrics Changes - Fourth quarter revenue totaled $306,000, driven by sales of Fisker branding, home charging solutions, and merchandise [43] - Operating expenses for Q4 were $178 million, or $176 million excluding stock compensation expense, while capital expenditures were $34 million for the quarter [75] - Full year operating expenses and capital expenditures totaled $702 million, below the low end of guidance [75] Business Line Data and Key Metrics Changes - The Fisker Ocean has net reservations and orders totaling approximately 65,000, reflecting a growing global addressable market for electric SUVs [21] - The current PEAR reservations exceed 5,600, with new images released to potentially increase interest [26] Market Data and Key Metrics Changes - The company has seen continued improvements in commodity and logistics costs, with steel and aluminum prices down over 30% from 2022 highs [40] - Battery raw material prices, such as nickel and cobalt, have decreased significantly from peaks, while lithium carbonate prices have started to ease [40] Company Strategy and Development Direction - Fisker aims to reach 1 million vehicles per year and plans to showcase its future product portfolio at the inaugural Investor Day event later this year [26] - The company is focused on launching a high-quality Fisker Ocean with class-leading features and range, emphasizing a dual homologation strategy in both North America and Europe [15][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving gross margins of 8% to 12% and potentially positive EBITDA in 2023, contingent on supply chain performance [77] - The company anticipates being profitable in 2023, highlighting its asset-light strategy as a key factor [28] Other Important Information - The homologation process for the Fisker Ocean is expected to be completed in March, which is crucial for regulatory approval [31] - The company has made significant progress in developing its digital ecosystem, including an interactive 3-D configurator and an updated app [42] Q&A Session Summary Question: What are the risks and opportunities regarding gross margins? - Management indicated that there are no significant risks unless battery prices triple, and they expect to achieve gross margins from the first car due to their asset-light strategy [82] Question: What is the expected cadence of production through the year? - Management clarified that deliveries are dependent on homologation and regulatory approvals, while production can commence as parts arrive [88] Question: What is the expected impact of raw material price changes on battery pricing? - Management stated that battery pricing is set in contracts, and changes in raw material prices will flow through quarterly [87]