(Reuters) -Fisker Inc fell nearly 9% on Friday after supply chain issues forced a cut in its annual production target, taking the shine off its smaller-than-expected quarterly loss and the first revenue from deliveries of its electric sport utility vehicles.
The company now expects to produce between 20,000 and 23,000 vehicles in 2023, down from 32,000 to 36,000 units projected in May. It blamed the cut on a key supplier that needed more time to lift capacity to meet its schedule in the back half of 2023.
Fisker also raised its annual expenses projection to between $565 million and $640 million from $535 million to $610 million on higher selling, general and administrative costs.
Electric-vehicle startups have faced supply chain issues in the past year as industry suppliers prioritize larger EV makers with proven production capacity and demand.
Shares of Nikola also sank 13% on Friday after it named its fourth CEO in as many years in a bid to navigate a host of challenges including depleting cash reserves, supply chain constraints and a pivot to hydrogen fuel cell technology.
In July, Fisker said its production totaled 1,022 Ocean SUVs in the second quarter, missing its target of 1,400 to 1,700 units due to a shortage of components.
But the California-based company posted its first quarterly revenue from sales on Friday as the electric SUV maker kicked off deliveries in Europe and the United States.
Its electric SUVs also do not qualify for the $7,500 federal tax credit in the United States as they are made by the Austrian unit of Canadian auto parts maker Magna International.
Revenue came in at $825,000 in the second quarter, while the loss totaled 25 cents per share, compared with analysts’ expectation for a loss of 28 cents.
Analysts expect the company to record an operating profit in the fourth quarter, according to Refinitiv data.
(Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila and Anil D’Silva)