There was considerable excitement surrounding the electric vehicle (EV) market coming into the 2020s. The subsector had already increased its market share by more than analysts had predicted through the 2010s, with a nice assist from Tesla. However, the market has encountered challenges as consumers have been strained by inflation and interest rates at their highest levels in nearly 20 years. One EV producer has fallen on hard times in late 2023. Is there hope for a rebound? Let’s jump in.
Fisker (NYSE:FSR) is a Los Angeles-based company that develops, manufactures, markets, leases, or sells electric vehicles. Shares of this EV stock had plunged 15% week-over-week as of close on Tuesday, November 14. Its stock has dropped 51% in the year-to-date period.
The company’s stock suffered these losses after the release of Fisker’s third quarter (Q3) fiscal 2023 earnings on Monday, November 13. Fisker missed analyst expectations by quite a bit as it was only able to deliver total revenues of $71.8 million in Q3 2023. Moreover, it posted a net earnings loss of $91 million, or $0.27 per share. Fisker produced 4,725 vehicles in the quarter and delivered 1,097 vehicles.
Some analysts had already warned of Fisker’s risk in the current environment. This is still a company to watch as EVs gobble up greater market share through the 2020s.