Fisker Inc (NYSE:FSR) announced Tuesday that the electric automaker has lowered its production target as the U.S. EV startup continues to struggle to ramp up output in the face of supply chain constraints, easing demand and a tight cash position.
The announcement follows weak earnings and a production outlook cut overnight from Lucid Group Inc (NASDAQ:LCID) that sent its stock sinking 10%. Fisker reported a $0.38 loss per share for the first three months of the year. A larger loss than the ($0.30) expected by Wall Street.
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.
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.
Shares of FSR are down 14.22% in premarket trading on Tuesday.