By Chibuike Oguh
NEW YORK (Reuters) - Shares of Fisker Inc (NYSE:FSR) fell by more than 24% to an all-time low on Tuesday after the electric-vehicle startup slashed its production targets as it struggles to ramp up deliveries.
Fisker expects to produce between 13,000 and 17,000 electric vehicles in 2023, down from its prior projection of 20,000 to 23,000 vehicles, the company said after the closing bell on Monday as it released its third quarter results.
Fisker's shares fell to as low as $3.11, on track for the biggest daily percentage decline since the company went public in 2020. The stock is now down about 56% this year and is a fraction of its all-time intraday high of around $32 reached in March 2021 during a pandemic boom.
Multiple Wall Street analysts, including from Barclays, Evercore and Cowen, slashed their price target on Fisker's shares after its revised production forecast. The median price target of the 14 analysts covering the stock is $6.50, down from $8 a month ago, and their current recommendation is "hold", according to LSEG data.
Fisker delivered 1,200 vehicles in October, higher than the 1,097 it delivered in the whole of the third quarter, and it was on track to deliver even more cars this month, helped by improvements to its delivery process. Its third quarter revenue of $71.8 million and net loss of $91 million both missed analyst estimates, according to LSEG data.
Unlike other EV makers, Fisker has outsourced its vehicle production to Canadian auto part supplier Magna International (NYSE:MGA).
Fisker had delayed its quarterly results after it flagged issues relating to internal controls over financial reporting following the departure of its chief accounting officer, John Finnucan, in October.
The total value of short interest in Fisker currently stands at $364 million, representing about 46% of its public float of shares, according to Ihor Dusaniwsky, a managing director at S3 Partners.
"From our perspective, this raises major questions and is likely to add insult to injury for one of the market's most highly-shorted names," CFRA Research analyst Garrett Nelson wrote in an investor note reacting to Monday's news. Nelson reiterated his "strong sell" rating and halved his 12-month price target from $2 to $1.