top partner

for CFD

Just days after reporting disappointing quarterly results, Fisker (NYSE: FSR) is overhauling its distribution strategy. Investors don’t appear to be on board with the change, sending shares of Fisker down 9.3% as of 11:45 Eastern Friday.

Fisker deliveries pass a key milestone

Fisker is one of a handful of electric vehicle start-ups that have entered the market in recent years and is not unique in finding it difficult to break into what has historically been a highly competitive, complex global market.

Earlier this week, Fisker shares fell nearly 20% after the company missed analyst estimates and cut its production forecast for the year.

Late Thursday, the company announced it had set a new milestone by delivering 107 vehicles in a single day, representing about $7.5 million in revenue. Fisker said it achieved the milestone by implementing a new distribution strategy, including establishing delivery locations around the globe staffed by company employees and partnering with multiple logistics vendors.

As part of the change, customers who live more than 60 miles from a Fisker fulfillment center can have their vehicle delivered by a company employee.

Fisker said it is now able to fulfill many orders within seven days of the customer completing their purchase.

“This result proves that our new distribution strategy is working,” founder and CEO Henrik Fisker said in a statement. “We expect this pace of deliveries to accelerate, and we will provide frequent updates during the remainder of 2023.”

Is Fisker a buy as deliveries accelerate?

More deliveries mean more revenue, so why is the stock off sharply on the news? The overhauled system requires more employees and more complexity, which is likely to add to costs for a company that just reported a significantly larger quarterly loss than analysts had expected.

The news also does nothing to address one of the more concerning tidbits to come out of Fisker’s earnings report: The company disclosed potential weakness in its internal financial controls and said that, due to the recent departure of its chief accounting officer, it could not file its quarterly financial statement with the Securities and Exchange Commission.

Shares of Fisker are now down 65% for the year and are more than 90% off their all-time highs. The good news for investors is that after a long wait, Fisker is finally generating revenue and delivering vehicles, with a plan to ramp up from here. But until there is more clarity about Fisker’s accounting and signs that the company is turning the quarter toward profitability, investors would be wise to steer clear of this volatile stock.

10 stocks we like better than Fisker
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Fisker wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of November 15, 2023

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Read the full story: Read More“>

Blog powered by G6

Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.

For any inquiries, please contact [email protected]