In a recent update, electric vehicle startup Fisker announced that it would be scaling down production in December and producing fewer cars than initially estimated. The decision was made to prioritize liquidity and unlock over $300 million in working capital, allowing for additional business flexibility.

Fisker has reduced its production targets for the second time this year, setting the goal at just over 10,000 cars. This means that the company now expects to produce less than a quarter of the Fisker Ocean, their flagship model, than originally planned.

The company had initially reported approximately 65,000 pre-orders for the Ocean model in February. However, their optimistic forecast for 2023 had to be readjusted multiple times throughout the year. The guidance was lowered to 32,000 to 36,000 units in May, and further reduced to 20,000 to 23,000 units in August. In November, the guidance was modified once again to 13,000 to 17,000 units. Now, Fisker estimates production to be just over 10,000 units.

Despite the production adjustments, Fisker's shares actually rose on this news, indicating that investors appreciate the company's focus on improving its financial situation. It is worth noting that Fisker had already produced 5,802 Ocean vehicles in the first nine months of the year, with an additional 3,000 produced by mid-November.

Customer deliveries of the Ocean model have been slower than anticipated, with just 1,108 units delivered by the end of the third quarter. However, this number increased to over 3,000 units by mid-November. Fisker is working to overcome delivery challenges and has set a goal to deliver more customer cars by the end of this year than any other Western electric vehicle startup did in their first year.

Despite the adjustments in production, Fisker's CEO, Henrik Fisker, remains optimistic about the company's performance. He stated that they are doing well considering the current market conditions and the negative sentiments surrounding EV sales. Fisker is focused on accelerating sales and deliveries, and expects to generate considerable revenue as they ramp up their business.

Fisker also revealed that on November 16, they achieved a milestone by delivering over 100 units in a single day, and this number increased to 123 by November 30. They expect deliveries to continue to accelerate, reaching a peak rate of more than 3,000 units per month.

Looking ahead to 2024, it is projected that Fisker's sales may reach around 6,000 to 7,000 units, which is a significant decrease from the original 65,000 pre-orders. The company acknowledges that there may not be a need to produce more cars until the delivery bottlenecks are resolved.

In addition to sales, Fisker aims to generate cash through the sale of EPA Greenhouse Gas emission credits in the U.S. and through entering into an emission pooling agreement in Europe. The company is also in discussions with strategic partners and automakers, possibly indicating future collaborations or even the potential for acquiring a stake in Fisker.

As Fisker adjusts its production targets and prioritizes liquidity, the company remains determined to overcome challenges and succeed in the EV market. With a focus on growing their current markets, expanding into new territories, and enhancing their sales and service offerings for the Fisker Ocean, the company is striving to solidify its place in the industry.