Shares of Fisker Inc were in peril on Monday, after the EV startup reported dismal earnings for the last quarter, while revealing plans to maintain its current level of capital spending for the remainder of the year.
The LA-based company, which is expected to debut its first vehicle next year, reported a loss of 63 cents per share, which is significantly worse than the consensus forecast among analysts polled by Refinitiv, whom called for a loss of 19 cents per share. Fisker also revealed plans to maintain a previous projection of expenditure spending on plants and equipment, which sits between $210 million and $240 million for 2021.
Although Fisker has been unable to generate meaningful revenue, investors look to the company’s quarterly earnings to assess its progress on key milestones. Fisker’s first car, an all-electric SUV called the Ocean, is expected to enter mass production by the end of 2022, and will be built by Canadian manufacturer Magna International Inc. Despite the company outsourcing its manufacturing, it still finished off the first quarter with approximately $985 million in cash and equivalents.
Fisker is one of many EV startups that have been chasing the momentum created by industry leader Tesla. However, according to a recent interview, the company has a slightly opposing viewpoint when it comes to cryptocurrencies. During an interview with CNBC, Fisker CEO and founder Henrik Fisker said the company does not have any immediate plans to invest in bitcoin nor accept the digital currency as payment.
“I just don’t think it’s a sustainable solution,” Fisker explained. “It’s not environmental-friendly and we would not do that,” he added. The latest comments from Fisker echo those made by Tesla CEO Elon Musk, who recently reversed a previous option of allowing customers to make payments via bitcoin.
nformation for this briefing was found via Fisker and CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.