Fisker Releases Q2 2023 Results

As a shareholder, I tend to notice omissions as much as what is said …

1. Not a peep on Ocean reservation numbers is telling. I suspect they have had cancellations or hit the brakes on new ones coming in or both … either would be bad for future prospects. They probably didn’t do too well with the enticements to upsell Extreme to reservation holders and get confirmed orders or we would have heard about it.
2. Henrik (CEO) and Geeta (CFO & COO) have a huge credibility problem. Since the parts have to be supplied in advance of ramp-up, they were clearly being disingenuous in first week of June with their rosy projections on ramp-up ahead. Bigger issue is the complete failure as COO to work through the logistics of delivery. It’s abundantly clear, it was amateur hour on that front.
3. I was really put off by the dismissive attitude towards customer and reviewer complaints about “laggy” software performance. These EVs are really a hardware platform whose client experience is driven by software. As a techie myself, I know very well the need to refine and improve software with customer feedback. Why not come out and be open about it? Every manufacturer that is heavily dependent on SW has to deal with these teething issues with brand new platforms. A bit of humility and asking for patience/forgiveness would be helpful.
4. Vehicle logistics for transport from factory, shipment by rail/truck/ship, inspection and delivery to customer is nothing new. If planned properly, the timeframes are pretty well known. I feel Fisker had fallen flat on their face when it comes to delivering cars to customers. When you are running an “asset light” strategy, logistics and services are a big part of what you own. And keeping customers informed of what to expect and meeting those expectations is key to being successful. This is where the Fisker team has no credibility at all because they have constantly set false expectations and not met them.
5. Making 18% margin on the highest priced trim is impressive but that doesn’t make a successful company. The volumes and success will come from selling lots of the other trims and making money from all of them. This remains to be seen. Unless Fisker can get their act together on logistics, customer communications and after-sales service, this could be doomed to failure. 

Ok can anyone tell me with everything in the last day if they heard what I think I did. When she was talking money she was on the new 300 to 600 million investor   One did she say he had deep pockets and two that he wants to remain anonymous. Is this normal ? 

@william-simpson yes, she said it was an investor with $20B of assets under management who did not wish to be named. This is typical with hedge funds or sovereign wealth funds. Whoever it is, they are making a nice 12% return (discount value) in their investment even if the share price doesn’t get over the $7.80 strike price. If Fisker SP boosts beyond the strike price, they could do even better. The downside risk is in being an unsecured creditor. Again, this is the sort of risk a hedge fund or sovereign wealth fund would take and stay anonymous.

@oceanone714 thanks if above in two years makes more if below he gets the 7.80. Or can just hold ?

@william-simpson it’s a convertible note so they have the option to take the money or convert the $380MM into shares at $7.80, if they so choose. The upside for them depends on how well the share price does in the next year. For existing shareholders, it creates a dilution because additional shares have to be issued.