Fisker Inc (NYSE: FSR) stock rose over 10.6% on 18th May, 2021 (as of 11:13:20 UTC-4 · USD ; Source: Google finance) after the company and Sharp Corporation, part of the Hon Hai Technology Group, have signed framework agreements to develop technologies supporting next generation in-vehicle screens and interfaces.
The agreement includes the co-creation of technologies and the subsequent manufacture of screens and components from Sharp to support the Ocean SUV, Project’ PEAR’ (Personal Electric Automotive Revolution), and potentially two additional Fisker vehicles. The new segment vehicle will be jointly developed by both companies and sold under the Fisker brand into global markets including North America, Europe, China, and India. Project PEAR will be the company’s second model, with US production slated for Q4 2023. Fisker plans to start production and deliveries on its first vehicle, the Ocean electric SUV, in Q4 2022 and unveil a production-intent prototype at the Los Angeles Auto Show later this year. The collaboration with Sharp is expected to create exciting new automotive display systems, which will feature innovative backlight solutions to improve illumination without increasing power consumption, in addition to class-leading resolution, bezels, and design.
On the other hand, FSR in the first quarter of FY 21 has reported the net loss of total $31.6 million and $0.11 loss per share. The company generated net cash used in operating activities of total $28.8 million and incurred the capital expenditures of total $65.7 million. The company’s loss from operations were of total $33.1 million, including $0.8 million of stock-based compensation expense. Cash and cash equivalents of $985.4 million at the end of March, 2021 and have zero debt.
The company expects R&D to be marginally higher in Q2 and Q3 than Q4 2021 due to timing of incremental supplier design / development and prototype builds. Research & Development (Non-GAAP) is expected to be $210 – $230 million. The company expects capital expenditures to be lumpy, with spending in Q2 somewhat lower than in Q1.
Moreover, the company during the first quarter, had reservations of total 16,000. The breadth of interest in Fisker Ocean continues to indicate a larger-than-expected addressable market. The current vehicles owned by reservation-holders are >70% internal-combustion, >50% non-premium brand, and >50% non-SUV / crossover.
The company has now moved into the Ocean execution phase, evidenced by ramp-up of spending across a variety of areas, including product engineering, vendor engineering and tooling, and capital expenditures.