(Reuters) -Fisker Inc lowered its 2023 production target on Tuesday, the latest sign that U.S. electric-vehicle startups were struggling to ramp up output in the face of supply chain constraints, easing demand and a tight cash position.
Shares of the company slumped 12% in premarket trading.
The results follow weak earnings and a production outlook cut overnight from Lucid Group Inc, sending its stock tumbling 10%.
U.S. EV startups' hopes of shaking up the industry collided with rising interest rates and sluggish demand, with many grappling with production challenges. Market leader Tesla (NASDAQ:TSLA) has also cut prices to stoke demand.
Fisker now expects to produce between 32,000 and 36,000 units in 2023, compared with its previous target of 42,400 cars. The company blamed the cut on supply chain issues and an updated timing for homologation, or the certification for roadworthiness.
Its 32-cent per share adjusted loss for the first three months of the year was also larger than Wall Street estimates for a 30-cent loss, according to Refinitiv data.
As of March 31, Fisker had about $652.5 million in cash and cash equivalents, compared with $1.04 billion a year earlier.
The company expects to produce between 1,400 and 1,700 vehicles in the second quarter.