Earnings call transcript Q2 2023

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Operator

Good morning. And welcome to Fisker Inc.'s Second Quarter 2023 Earnings Call. All participants are in a listen-only mode. After the speakers' presentation, we will conduct a question-and-answer session. [Operator Instructions].

conference being this reminder, a call recorded. is As

turn over Relations. to would you. now Boroch, call to like sir. Investor I Frank the VP go ahead, Please Thank of

Frank Boroch

to you, Fisker's Thank everyone, Hello, and earnings operator. call. welcome

As of Relations VP and Frank Fisker. Investor at operator my here mentioned, is Boroch, name Treasury

and Henrik on Officer; Gupta-Fisker, Geeta and are Executive Chief Officer. Dr. Fisker, Officer Operating me Joining call Burkhard Officer; Dr. Chief Chief today's Huhnke, Technology Financial Chief

Actual results our expectations. in includes uncertainties projected. Commission. forward-looking as materially set statements are release more the those note to future from described forth include Please and today's Exchange with subject press well our periods those fully we that discussion that filings about Securities could to those results risks the earlier and issued as in in risks cause These our differ today

certain Today's in reconciliations financial our non-GAAP Quantitative discussion including GAAP also information expenses. the comparable includes non-GAAP operating of earnings directly release. financial to non-GAAP information measures, most today's appears

With to call the happy turn over Henrik. to I'm that,

Henrik Fisker

us Frank. joining Thank Good everyone. our earnings for you morning, quarter for you, call. second Thank XXXX today

progress XXXX. the thank I partners have all First, stakeholders, the hard we in continuous teams work to our made for and and would all like

past have The few achieved we milestones. months, several significant

Fisker global deliveries. product, providing access production began and to best-in-class first Ocean, Our range, commenced achieved up large addressable ramp markets,

and unveiled for profitable achievements product and a scale these long completing future large important media our had sustainable also financing yesterday. event, growth. term We well all We test lineup us position of believe an

of on have And where it's really really the interesting anywhere a see ever nobody's mentioning any of cars I think And that EV in that double to the course, for we don't that delivered. talking And I in first about stage going digit future. margin news. profit very profitability, the that made that we're sets the know startup

teams, is CFO possibilities materials here. highlights mention the it's it future quite our I in future this and of this as well Ocean, how our about vehicle executed very because the for frankly. And important the and know going the think very, excellent to what are to they I really engineering it vehicles, vehicle, talk So for that our building

So around get the the our as fast to across markets. customers we we can. best-in-class Oceans past the it's Fisker to our deliveries been of expanding the look The exciting bring to our in months to as hands all the clock Ocean are team few working quickly customers over partners and forward and our launch

customer service to our sales and experience. direct Now, supports network consumer exceptional

Our North American flagship location in at all Los Angeles completed The Grove has construction.

we as to We experience next Monday. is our final the soon as as the expect inspection really it I'm store have. truly are to that demonstrates excited to we And open this open waiting completed, customers location. want

to XXXX. more In the we physical footprint digital addition complement are Sweden, physical expect Europe Norway, cities We the in and to Germany, comprehensive expand locations to storefront, Austria, presence retail the North our XX/X quickly and we establishing currently Denmark, opened UK. a experience. customer have to America And throughout in growing virtual

upcoming Maryland, Arizona, bring will Tennessee, Additional locations locations to current include New York France, and XX. which

few Europe, have we addition, dozen properties negotiation America this also in a come North in year. other In they in and online and will

locations. the internal expanded also field our stationed our We and in service capabilities physical have at Fisker and technicians

working customers. respond really, broad this broad of coverage And To service well. geographic we're able service really in has see And really that our third network to can offer to actually our how shown think I party fast our markets. you complement, each is

customers days, Europe forward. and drives. in now have quite course, these we well. in the drives, last vehicles to not doing North And have yet One few test received and we the need drives who customers actually our to going the started test test teams vehicles lot of these events new ready, have of our have have as America and we'll and, We extend deposit we We Ocean holders the start done a

Ocean a do little Let's of bit a update detailed here.

one ramping be high which and class and priority deliveries by number with fast have followed We're leading Fisker quality Our Ocean, is features in and Europe launching range. initial to excited ramp. a US, a begun will

which the sale. range the our class. US longest any EPA homologation electric and of of on SUV of is electric QX, XXX any of Ocean completed And range course, Europe, longest SUV it's Extreme the miles, actually In range achieved in the in

the on-hand I delivered had And now nine countries Fisker four of and both US here US. across are states, customers Ocean and and to states in our Denmark of five launch Germany Europe countries pleasure in and actually quarter. expanding be deliveries have rapidly to more we being the many of in for customer course, initial all last and,

Extreme prioritizing And of Ocean throughout most will that upon a touch currently begin and Ultra also working process Burkhard While trims the We trims. will those the the we're customers trims of anticipate XXXX, we in deliveries deliveries One Sport through little for are homologation later. of and fall.

anticipate get excited will over-achieve on range certification. I'm like the pretty specifications the And we final Sport when the Ultra also both actually that will I the and they actually – also

range these of be and vehicles any than I competitors. best-in-class So, more offer both our think of again, will

entire have broaden this So this we will customer available obviously all segment. that customers – in the the

into plans addressable North a large nine as But to regions and both where is total in The our initial Ocean has expand also are. Europe which launch countries other America, market well. we have

edition largest XXXX, And India will is yesterday. from the car Pear expect that showed accelerating will vehicles, the well. we XXXX. actually as year market markets key And actually we into a commence announced And India, especially For as for example, see this which of price lower our QX India in course, world. electrification one deliveries we in we India the limited of start now

this and we we of a center we announced will And later in in China deliveries start China. in that next have year course, delivery QX year will open

All right.

Pear, engineering continues the the progress On program, Pear to design well.

can see finalized vehicle, maybe the frozen. frozen, a real is see, had who it's this you much concept yesterday, the vehicle to the of design entire pretty those chance we For

have on body be new made actually vehicle to XX% by steps amazing. to under this it team I of XX,XXX the towards most available scheduled is what structure up that's And be amazing congratulate And under come is to going it reduced is And I'm innovative for creating some about the I super our parts exciting think can that. money sale with still we'll mid-XXXX. which to century, of for one have vehicle. a We engineering sell $XX,XXX, count is completely reasons and we really And excited for in the it. want make

we engineered for work of Foxconn Pear. plan on this finalizing that course, continue And will with require manufacturing uniquely for an to innovative we setup

our automotive Product course, car any fundamentally, of about held And I electric believe another it's industry, product. was we yesterday, car. California. Day Vision it to making It's these in exciting that And of and sort quite not in about all just the all show vehicles. just

in weren't really electric the We they cars up, but have selling. some past came that seen

And absolutely market. to grab lineup. the of into segments think phenomenal give some I competition that giant product there's ability us is fantastic, a part market no a potential think to to I where we have the going go really

Alaska, vehicle $XX,XXX showed I electric believe at vehicle to at and as showed any that that going with alone which There any is that look no the we vehicle. it, think isn't I there's the X.X sporty don't And feet cool as there the electric we our yesterday And And If under vehicle today, bed of pickup pickup with from truck pickup let truck, how truck $XX,XXX. Alaska versatility electric electric any is. amazing. segment. our is looking Pear in really incentives is is. just And feet I cool with X.X the as in cool, course,

We already ton for a vehicle. positive of got response that

expanding I the already potential see going to hope this we we reservations And huge about truck out I in there. when we're think I orders X,XXX the future. the got keep overnight. word get

the good that a carryover is news And of has lot Ocean vehicle parts.

we profit have believe going fast So vehicle well. as get to we're into production. be high that to very for should that able very margin And I

who more an want of Ocean market the Ocean going the hardcore then, to a really I which in course, the I people market market, offroading. think package, there well also E is expansion on even think which offroad is is unique because really Force enjoy EV isn't more with And we offroad for available to broaden that showed into segment going as any our just

So excited in already offer to very that package we're QX year. next going that I'm

be to car. course, Ronin, volume finally, the going And then, of a low it's

going handmade investment. units. think brand, with the It's be be going big vehicle, longest of end the to I really to low we're of a our is think But where exciting super well. technologies it's the a not and in too It's about I engineering course, probably vehicle important XXX showcase vehicle build to and going going new it's under exploring as world's to volume, day, creating capabilities it's the an range, X,XXX miles. which

well. as that about excited really I'm So

of Finally, is important. most it because the brand most let's one if sustainability our not about important talk pillars,

the that Fisker recently footprint grave assessment work details Ocean. We cradle So, analysis is the which the lifecycle hard in carbon a Ocean, our for continuous. of ESG published to the

carbon public of that The electric Fisker footprint lowest. SUV, has lowest any the findings the the were Ocean

world's sustainable really we the vehicle. keep did to our of making Ocean most So promise the

end sustainability really from raw vehicles the through it five of vehicle's materials the highlights of to use. the life, And unprecedent phases

sustainability believe is we We our every aspect how core and it are is pleased for with what very to results at Fisker. the woven business stand shows and of into

that progressing targets Nations Development materially are with the to Sustainable Goals on company. United aligned our the relevant We company's are

us, double just think, these think the for I fantastic overall, sold, it's margin. time for EV week on absolutely first car products, any digit I first the all showing a a been showing So company,

huge. think it's I

deliveries. expanding we We our Yes, are slow. really ramping a up started and bit

to the a achieve very day cars really what's here our is production next of in couple will think get and we we that months. XXX I can important fast that

for are we year. which we goal, is of XXX that yearly which, that, and a achieving ultimately, on a this on day production our target but original to will month, XX,XXX, target cars monthly was get is overachieve when we cars the a X,XXX on already So over

future it Officer. the hand about Technology very would to like now excited to over Chief I and Burkhard, I'm our So,

Burkhard Huhnke

Yeah. you, Henrik. Thank

the for the and During as the work our pointed achieved range and partners. longest from out, second Europe continent dual teams engineering Henrik completed both Extreme Ocean all segment, the in its we hard US, quarter, our highlighting homologation, Fisker and had

Extreme, currently quarter. later homologation and on We this India which are for working we the Canadian to receive expect

homologating levels. Ultra Sport on our focused also and are trim We

different a The and to the powertrain has given similarities versus Ultra follows the Sport, a relatively the streamlined process, other characteristics. Extreme, which

to We the these then expect in receive month start deliveries to or the fall. next and in two initial trims approval sell should

be As before, software will we've discussed continually iterated. the vehicle

We the vehicles and packages, as with have are capabilities. high integration and which equipped essential Oceans features We're via drive can and of over-the-air months initial fully finalize advanced coming will by be enhanced beam, to features, new more push out over be will working assist which complemented release auto our the currently such connected. integrated the we since

incorporating We the feedback improve early are customer product. to

teams the flush refinements, vehicles. to the then updates which working are fleet Our make around we clock of to

know for the positive the media mentioned, drives bring updated. with market. we are who past the of to vehicle we in in continually the Europe pleased seeing feedback But the Ocean the very product weeks. be room from as product participated there's I few excellent are will the proud to And and quality Yes, improvement. We're those always of external

deliver our to launch the to first to connectivity, support over-the-air will ready updates enhanced customers update our etc. We're and OTA that expect

let revolutionary leveraging truly update create on expanding and to of next Now, our inhouse rapidly from me Ocean technical the mobility. provide generation Pear. experience the program capabilities We're an a

emphasized the a Vision Day, to yesterday really means I what As the data exemplifies at be Product centric it Pear vehicle.

an architecture we computing supports within reduce Our designed all single modular, Fisker distributed new to It's Blade. blank the team architecture. a box fast, complexity very has compute It sheet upgradable, a communications EE high platform call performance, and zonal centralized developed on with vehicle.

the The its better with makes vehicle vehicle over-the-air improve Pear software safer update and over is that cloud and a continually highly vehicle that via smarter, allows analytics the us lifetime. rapid connected perform to monitor

resulting for is used various a less and customers. in constantly vehicles vehicle software in to Fisker increased lineup. reusable be vehicles, and costs EVs improved, in Fisker's by Fisker, win-win our can development longevity. more for lower customers giving more truly affordable resulting and that that and refreshed It platform It's Blade flexible Fisker for a product the scalable, leads sustainable are flexible and

how designers to and process developed, easier parallel and development in vehicle software introducing earliest where process, are much can are OEMs and parts find in the to Recall the integrated left cycle. visibility traditionally in we're fix, shift It where hardware enables the the cheaper design into they transformed tested have virtual of the earlier not earlier sequential design mistakes through a development addition, In the into innovations automotive significant also but models. only one.

and With design software strategy, incorporate security months functional development to into development the PCB and testing and up reliability XX across from the supply start, left available, problems earlier can shift chain. quality is hardware the into safety before teams the integrate and their and during begin and identify software design

programs. for Ronin to vehicle processes achieve We any and are tools and implementing future this the Pear,

class team put class the we I'm program more an experienced platforms coming and years of The vehicle. to excited We're well the have built amazing maturity for an some upcoming and vehicle Ocean yesterday. Fisker we've positioned by work have support and leading customers to months. is We Ocean more world partners. the inhouse shared in exceptional be into

now Geeta. call Thank to you. over I turn will the

Geeta Gupta-Fisker

I suppliers, building and work lot global Burkhard. begin exciting A to our I in the and super want hard customers team hope amazing has into by more a product – great I the and has put customers of labor lineup the brand, more saw to was extremely gone investors. our excited our entire product when and team, fruits of thanking the you, and Thank with with I Fisker we chills EV is see the getting had and it of together, customers that focus excited hands Ocean our customers. lineup. this partners, future

commenced approval to actually in Europe in to regions. in half receive both and of homologation deliveries unprecedented deliver before and time been the ocean we the in the and as and year, never startup. and received It's first multiple at countries Now, the product sell US done same a

company bit the give later volumes. the is of for production into a half geographies focus I more additional delivery ramping The detail will second now on. and and expanding little

of We on an made progress highest the me let vehicles good manufacturing quality. our our supply off update are Now ensuring and really line provide capabilities, ramping manufacturing that status. chain coming up the

and been ramping sure to in has on require maturity volumes our Our chain that and just the main focus making targets. meet we are supply time suppliers they're delivering

to as sub-suppliers our whole, any we launch While don't and to phases. issues time. long during a not targets. see we've disruptions ramp seen chain are a duration unusual expect to a some volume easing, more annual request of we relate who supply have and over meet certain But time up chain these and high bit supply ramp These suppliers

with can we to are and volume be increased our These which bit partners forecasts. volume we our challenges Again, and issue, collaboration. common to to this While as a is Hendrik monthly high exceed align requirements. chain task require any a a These is achieve capacity our adjusted and platform and we suppliers confident the when whole, partners expect suppliers our supplier forces year. with And time we'll to not harder increase to solve through work launches just break expect next we scarcity identify supply bottlenecks, eventually And to new solve. constraints our capacity need all directly little are our as more XXX% of that and our capacity mentioned, we increase able to volume targets them.

of and production in day of units of Now assembly the We with rate our to the vehicles a June, partial numbers. May let's production, first at in late target exceeded per XX go of and quarter majority QX X,XXX entire end June. produced

daily XXX a the a – June's X,XXX July, In the unprecedented rate. startup. units for peak hit from from units month units which peak of were partial and assembly improvement daily in month, a That's again, July, was rate XX% produced, unprecedented June, up – XXX in

through the XX. July reduced working August fewer shutdown and Magna days was impacted by which due Steyr, regular continues production at shifts summer to

OEM standard upgrades a facility. is preventive practice for Europe, the for assembly and of this sites, specifically maintenance which consist in Now certain manufacturing

year-end. shutdowns summer at currently will and Our take the in place

We're help summer ramp our shutdown suppliers we of nature the also be manufacturing will bank out up. to using summer of to resume advanced rate shutdown, parts support our the some due Coming to immediately the of volume at able automated we would manufacturing highly today. to

quarter, United happened begun in ocean Europe, US and both Europe. trucking. the enable are countries in order. distribution in delivery approvals in our expand ports volumes And standard short geographic we late second vessel have and we the This to in US transport to will States our multiple certain us Since in

sense Europe batteries. over you To give near in of X,XXX key a commodities or of is upcoming received. one the We ramp, already batteries the have term to transit already

X,XXX the the XX That And as customers. Denmark, total countries respective Sweden late way of include said, of Norway. QX and July. and June their which rest and USA, are a Steyr under the I vehicles occurred, With making July, June These just is Austria, partial through July, vehicles of majority customer in over and vehicles. produced Germany, Magna handed these month vehicles XXX during logistics and to between around of in in their

June. the vehicles talk a little bit in to we about me Magna vehicles XX Now, in reported Yes, June we delivered let deliveries. out of delivered under XX us

vehicles customers. we as day. deliveries of in However, of by, delivered delivering multiple we day And tens single countries each goes over date, hundreds because every vehicles are our have XXX to to day till every increase we

every up day. go only So the single will numbers

beyond hour we investing X to fueled enables year. higher demonstrates the ahead, expand in gigawatt the Ocean. initial anticipated Fisker of support battery potential annual capacity us This than the announced demand for volumes decision impressive confidence originally we next capacity Looking our business late are This by XXXX. as in additional to leading growth our our in announced, we class

Magna volume Steyr, CapEx, XX,XXX having invest At per can without year. we to to go additional

would have that, simultaneously. The ramped Beyond all get point is we lead long parts, critical CapEx. make especially invest minor up in to to suppliers, sure our

and customer with going attention increasing already to growing suppliers our year. this We we globally paying already address capacity demands are to are

stop providing digital model including quarter, insurance live offerings, went journey, digital financing the Our one last business full direct-to-consumer and first convenient with a purchase solution.

Our approval rates unprecedented. are

We rates our customers. providing with Chase be to are great and partners to and solutions very Santander, proud

continue web platforms We our purchase enhance plan introduce functionality over the their Fisker coming to to seamlessly to allow app we months. and to vehicles customers new and the

are many other experience. ownership We complete a and provide introducing insurance products exciting trade-ins, that

Now sheet QX to results, turning XXXX balance outlook. our and

company was quarter from the US. exciting from PowerPoint the brings quarter sales. automotive for – company in two the Second that a derived vehicle to continents, real company the revenue with automotive our in and Europe milestone first a company momentous in A very from potential

totaled driven by revenue Ocean quarter $XXX,XXX, Second initial sales. primarily vehicle

the quarter, the this vehicles. had represents base Fisker up Magna and with Ocean potential situation had at But by vehicle, free the Henrik early as of handed those a early vehicles in unique and a price. we interest three during I base the not for they myself. to population earlier, rates XX paid on vehicles of was lower return capital This period, very this One During difference provided And to to between and who stage some as XX investors we XX mentioned was delivered us. sold vehicles

Our cost reflecting initial ramp. $XXX,XXX, with of associated some second goods production sold costs quarter totaled

quarter operational discounted early margin saw margins guided positive with our that investor we X.X% the $XX,XXX and impacted have stage quarter. before, negatively the costs in despite the what gross we early of Consistent for or a vehicles

by on done our gross was Excluding an margin unprecedented, an startup never these vehicles, stage XX.X%. investor first an the any early vehicles, XX.X% – initial other before astounding

that totaled expenses $XX quarter-over-quarter on operating management. unprecedented on and flat shows expense cash year-over-year which QX was Our million, XX% a an management, discipline decline

from million, year. was approximately operations $XX.X from also last unchanged Loss

loss share million per $XX.X totaled share loss year. per to Net $X.XX $X.XX or last loss compared

milestone manufacturing. Capital $XX.X by packaging driven the and in facility payments, with at million investments which for respect primarily to expenditures supplier came quarter, were

to continue business our prudently support markets plan. capital to access We the

During equity cancelled our the from quarter, and the million $XX we subsequently raised approximately remaining aftermarket program, balance.

Similar pockets wishes first $XXX balance to convertible the who we convertible, of innovative which recently offering a $XXX notes with senior principal, million billion two investor principal executed the green aggregate we double when has was to gross structure, with to $XX with sheet resulted the industry's to $XXX years due deep financing XX be after in months. auto conducted bolstered XXXX, million issued ago, potential transaction balance named. million in in an X% Fisker. which coupon unsecured to This which transaction proceeds zero an The not over has AUM, coupon,

million actual to basis, against approximately million forma Due refunds We would of cash which we cash we bond, sales upcoming the This P&L finished pro will QX our zero gross restricted of on in convert monetize quarter. expenses a balance expenses, the $X with million $XXX discount ago to non-cash or been $XX and million approximately from year on the instead the to in receive interest issuance levels. similar original taxes. discount the interest which excludes each as accrete cash as issue for cash, coupon have to receivables, expect $XXX VAT

outlook. the turning to Now

guidance today's as their by compressed our to XX,XXX impact future production ramp of to only half in this not product. in one press production our for XXXX supplier's these capacity. do updating noted to near any day our release, of hours year term producing challenged are labor we a are limited for years' timeline a XX,XXX due We units As in range a ramp to their units capability expect of to

our ramp up. In fact, we expect further to supplier

year the dramatically. change targets do range costs provided input to XX% despite the QX, for XXXX X% in margins exceeding full We still anticipate gross in not

cost prior now to guidance asset year plus R&D balances Collectively, increase to and management disciplined last from guidance non-GAAP light overall under-absorbed costs investment plans. million million. $XXX Our The this for CapEx production. the model, $XXX prudent is XXXX quarter by was SG&A. driven

we now launch of with countries and Fisker will all and and growing markets our in continue wave next to we the of team Ocean XX as growing is our the rollout for is countries enter. reach One the The represented prepare

I'd customer show like whenever an their on and to we service We'll continue resilience, launching focus needed adjust vehicle track. to hard Fisker that the work. agility, for to stay hard are amazing providing. working team thank entire all unwavering and on now

We're now questions. our go happy first to Operator, take question. please your to

Operator

[Operator Instructions].

first question from come Our Needham. will from Pierce Chris

Chris Pierce

I just Magna's keeping the to wanted help with you production the to numbers of if you for on kind see as for production delivery timeline and could on went into shutdown July. detail summer

So these very to weighted to a that be is I'm thinking the to – get have going are well. quarter And the will kind to that of want I just And going sense production I be as question first Then right. that in of back-end quarter. deliveries be timeline the of fourth vehicles if mean deliveries XXXX. does have separate

Geeta Gupta-Fisker

to earlier have handed what's mature we we from delivered Magna translate logistics where the get countries and where deliver – can to us, longer which countries manage think our optimize countries have earlier, delivered later. countries we we in as production have get faster which we logistics over I or quarter

hours to For delivered us. be vehicles much within as as pretty hands over soon Magna example, can XX the Austria,

XX Germany train to trucked line. over be put days. be have West have us, East countries they're XX vehicles to a onto kilometers Zeebrugge, to Just have to vessel X line, get North longer. they perspective, they Scandinavian to train when to to put to is about a they to to If bit the a about train be or to is onto line, Austria, get go things they hands Coast truck. trucked We vehicles the which on a on Coast they have in trucked Once away. and a they to to port a America. truck. six Magna loaded in is Once days loaded

extent a manage govern how we our these prospective to Magna obviously, So, vehicle logistics to from movements certain customers.

can when they period arrive limited of countries you financing. vehicles the Fisker certain require destinations, time a if convert in customers Once locations, are

got Santander or Chase to they're if course, week registration through getting But period all customers, so or require documents a so as Of cash well. restrictive. financing going registrations you've financing, a if a certain time, less give about a and the of for allow they're to

convert the I will But expect further. move into that as efficiencies we reduced more inefficiency and timeframes

production will time. to So better with conversion get only

Chris Pierce

believe startup EV lastly, they're given or their the Just runs initial gross other receiving margin, pricing talked OEMs unfavorable small about that from on I have competitors other suppliers, supply for production.

just to how of you per margins. cost I'm suppliers these achieve So with curious gross the you make kind when achieve able Magna unit guys vehicle? you're helping relationship better the your Is

is, the that's production, of to from ask cost margins guess here? seeing kind I'd already the Or relationship is the I question Magna benefits question. gross broader of the and increase as you should gross how go you're part you're higher per those because how able now achieve margins

Geeta Gupta-Fisker

material Magna manufacturer and margins, you parts. your supply to about But margins, of buy you number you input, thought answer engineer chain have about parts is contract have us. to thought for relationships topic for first question the directly We us. the gross a about a critical where gross doesn't design is ourselves. Magna thought manage have vehicle, on

a the selling we, that get-go, So from car. $XX,XXX thought not organization car, created about an $XXX,XXX

organization So the thinks car we about organization the entire parts. steel a fewer efficiency. more how can The for thinks body, stamp entire about engineer

topic. that's the first So

that is seen go topic second costs battery The we've down.

from So on batteries down QX the input went to QX. costs

at in three, terms really of So down. look I to to is further the volumes I to expect what's go number And trends critical lifetime. continue think program those

a from straightforward. have lifetime, annual XX,XXX fairly a program So volumes we volume. And those are

also amortize I comment we the inhouse don't spend do our our actually do. that they way, which amortize what by their with suppliers. because But legacy investments. OEMs other can't on don't amortize their also, We money we amortize the ED&D investments. spend startups They

our business OEMs. have to models different light startups, from other an perspective, very so legacy we strategy, again, So asset

Operator

next Our question Jeffrey Osborne comes from from Cowen.

Jeffrey Osborne

Congratulations on was constraint. flush of the I supplier hoping the the out margins. nature strong to

an to this going intended problem component of in details resolve work Was and mentioned the having question be issue labor they're the be how additional product labor. helpful. always You Any rework. is to or on to you're do or tooling, didn't intensive, would

Geeta Gupta-Fisker

day, simple can as you out how a crank Jeff, case simple a as many it's of units that.

of So up is sort is the components are are unlike a are of electronics where time, certain you a it's companies, can exhaustive there in certain line, produce. and more to there of produce, more what tooled of what line a line millions just which PCBAs, can make, cost which automotive capacity the require print what to

and produce crank So this to particular it in up six year, a out units they tooled months. XX,XXX simply line is can't

Jeffrey Osborne

about. be run run that'll QX, you'll at [indiscernible] that talked that you rate resolved by

Geeta Gupta-Fisker

Yeah.

Jeffrey Osborne

The X,XXX month. a

Geeta Gupta-Fisker

Yes.

Jeffrey Osborne

So, you resolve that the that has the made comfortable and year you of at terms exit in supplier hiring. to feel that that investments

Geeta Gupta-Fisker

Would the point, please. last repeat you

Jeffrey Osborne

the by effort Difficulty] to X,XXX exercise has run made a hiring go month the [Technical at December. January to through supplier the or

You end said the by year. rate of you'd hit that the run

just to sure there? the So make want get gating only factor to that's

Geeta Gupta-Fisker

it's think two shift a I Yeah, operation.

I So we enough a to in a shift, a running get But a operation us two three full we're If that, is that three a run the need. to already volume shift. shift two supplier think run the needs operation. they'll year, good shit

Jeffrey Osborne

Alaska? to to dimension to platforms a commonality is see is the Pear Just way would Great one I those be two particular, Ocean? of the be and you LA. What Is platforms, in to the [indiscernible] last in accretive. would quick margin commonality the the those and on Alaska. night same there Certainly would the able relative for any imagine what do the

Henrik Fisker

about in in hard. body the of And would I of the it's we to panels, Yeah, – probably, region exclude if very you we're are XX% XX%. the probably say, region

where extended it's an added the Ocean rear. platform say commonality. have It's would we wheelbase just towards I really high So extremely

us trunk, which battery Houdini the even are using the We have in all the moves which this battery, down size, any rear allows behind where battery the would to same goes way truck which actually axle. be pickup the to right not other possible

running lot And load it because distribution. good So the you don't on the gives of the It in battery can you ours, really a back. doesn't. weight also have back way to all the put

we reasons also high very should to be that's able So one commonality. the very like And get I it's a of market. faster said,

Operator

Pavel Raymond next James. from from question Our comes Molchanov

Pavel Molchanov

kind plummeted with It compared perhaps. XXX your assumptions? cost Is expectations? some is in to consistent battery four perhaps to Or the there months room really of savings have seems the past or initial like five prices achieve that days,

Geeta Gupta-Fisker

quite transparent. price actually Battery is

can You LME [Technical the Shanghai Difficulty] and Exchange. Metal see

batteries and it. raw mechanical not since So, the at LFP. we buy are, to have know, And them our we as CATL. I look good on in chemistries, two MC a gone exchange absolutely course, benefited secret from right, think we components, us have the obviously that down. Exchange different And materials And you're have everybody's Metal of it's with raw obvious edge and Shanghai from in car, materials. for CATL, is And we a you China procuring because

EVs affordable us stabilize, this other electric expect and BoM. trend to need way market I are to And make a afford my batteries There go the part the has to continues the in it So way. cost of for stabilizes down. because, customers opinion, vehicles, to to is and no battery able for frankly, significant prices be

Pavel Molchanov

models the guys that yesterday. you up follow me unveiled on new Let

of the produced in except, in States models inhouse? Ocean new everything Austria, For the course, will the United be

Henrik Fisker

in is. produced has the Obviously, truck, here the Alaska, market US the that's to be main the where because pickup

it are well see general to US be planning market. as for in eventually We just over and in Europe Ocean the We US the promising. to here Europe to outlook also extremely the uptake here the bring and build

with next already from Magna And Europe I capacity. think serve Europe probably their can year

we US. extra announced, also beginning the of be end we next need as year, here already in of by built here The will in the US. So capacity XXXX Pear, probably

talks Foxconn. a little in with the When all it's We you because through manufacturing, of contract to go have details you understand still with final vehicle cost the different deal exact assembly. each are of to

yesterday, development showed. XXXX. year. it's we Alaska, showed show started vehicles in we them, development actually the just that in Now, And car that started time. last The we Those are we a with same in Ronin, long vehicles quite been the a The not have started of we XXXX. Pear, all for

pretty vehicles actually their So development all in these time. are far

So of on manufacturing now or location this us year later manufacturing the it's partners. exact deciding potential just a matter

Frank Boroch

the retail questions. some investor now Operator, take we'll of

the they any for on Fisker mentioned expand in then talks partnerships? First production one, expand this production. dates programs? partners of for on with you Fisker EVs? team all only is update And Can Ocean for the other be us Will that start been it's or to vehicle and on other these update the

Henrik Fisker

are on and product when interested like all you high those. Obviously, over confidential. We have large But in partnerships is we that a can't I confidential strategic spans strategic elaborate what our a talks, our would partnerships. on they're note, level there's why say, lines, really reason

taking looking doing and just really that. on one partnership we're a So vehicle not out at

important I thing that's the think here.

vehicles next on they're startup. have is I that there's just years, that there's that can to the kind care all the we unique, line I traditional do of showed product if no product don't no other go line we the OEM market which two a company, company think is other something showed or amazing yesterday, that car planet, yesterday. within

is fast reason far bring already And can into process. they're the very the market because them we engineering to

So, mean would might able faster it obviously, to higher market a strategic volume. to in partner be bring we even having

continue So that's discussions is elaborate – I always a but discussions. something that something really But to with open It's can't looking having not And I we're that to we on think right partners, different must. interesting we we're more potential at. now.

Frank Boroch

Another question.

taken are a is is steps with And of that can or improve being Ocean this? addressed laggy? this software Some What customer early updates? the feedback OTA little the be slow to

Geeta Gupta-Fisker

I Bloomberg laggy. tried feeling was laggy. and people tell software it was few is I've I Callahan, very one. And the Fiskerati. fake really I I've UI/UX talk to comments with And says aka a very yesterday, online have asked to to software issue Actually, article to of a Sean, had in chance And defy number that which a bunch want And interesting a there and read that. software of read 'Sean, a an Sean that's said, people was a that comments. I fact,

what you tell Sean, do So, me, mean by software is laggy.

two So things.

asked How long to to are should let's tab tab to forum And especially see Sean I all, tab their people, to And then tab. from vehicle. XXX of to the this comparing where review many on and cars, run who tab to a go he owners received his First ask said, it iPhone. people the seconds? comparative tab let's do takes go let's how well, to a from Sean

that's Now if different the to like to iPhone, I'd be a metric. completely compared

first So thing. that's the

we to the The we vehicle and of can like is pass the we to and I'd thing as what experience we the on the to do out like Burkhard make vehicle? to connected I what about perspective expect now is Apple. second think have consider vehicle that into put what to what software and do it talk that laggy

Burkhard Huhnke

the software will iterated. be we've mentioned, As continually

essential equipped complemented over advanced have coming So number the by will one will we capabilities. months this be with Ocean and enhanced more features, be and

to. We features are that pipeline of Geeta all currently to that since smartphone is via packages. referring and are was that working And And integration finalize we'll experience the new release push fully the our just over-the-air and vehicles connected.

updated. to it that so updates, interesting fresh get attractive and keep You and makes car constantly and the

early We have incorporated customer feedback.

around the the into vehicles. can working that? we make do Who to the fleet then even into Our flush which So are of teams clock incorporating are customer refinements, updates feedback. these

OTA So support deliver and expect customers our we're cetera. to to updates our will connectivity, launch to first et that ready enhanced the OTA

Frank Boroch

Let's analyst to back queue, now go the operator.

Operator

from Our next question Stanley. Morgan comes from Adam Jonas

Adam Jonas

working ranges the color that. difficulties. you audio question capital I us some usage the guidance given the on on and this OpEx production apologize give asked, you already between deliveries of gaps had if and if could this of don't for maybe see I was any sense have, know the half I some some Thank to for or capital. detail CapEx. you quarter working wanted and for – I But second

Geeta Gupta-Fisker

adding $XX there's no certain for require and guidance. other deliveries customer for which SGA, our in expansion, our Adam, million we to change except

have We our the second for half. required capital

Operator

Evercore ahead. please McNally Chris from ISI, go

Chris McNally

be Geeta, It wanted sort day ramp that month, looking like cadence X,XXX and QX production guidance, issue maybe seems just you XXX parts rate, previously? QX from October about and you'll take hit specifically. you per or sub-supplier Could ramped or that into with November longer focus clarify QX? that at Will to just in the described the they you about by on what a from QX QX? per implied talked is either will for sometime your that you've of that process that talked the

Geeta Gupta-Fisker

three shift a in the summer mentioned, right the shutdown they're two to if they go a operation provide banking parts going need. are to shift needed, now. I will As parts and, us And they we to

Chris McNally

that you'll to per in hit that seems into XXXX the Is that It extend it? that actually and sometime, rate think way will – then whatever, basically that XXXX. X,XXX, month right QX, about

Geeta Gupta-Fisker

parts smaller stored. about we to the think to cars XXX way can the need that when need same week, is arrive The to arrive a at The we day, be it Magna the relevant parts parts make can Steyr. bigger

way think. that's to So the

So, help banked, what have time. doing this have It if bank three to they in what taking this matter now. us. the matters can And period have working last that's ability two And All what a parts is the when supplier at we are It you ramp parts to we half, What doesn't doesn't that's December time. parts. to we're or weeks. is the if ramp ready. the are two week assemble don't second cars, waiting the And right and have we're suppliers that ready now. ramp on right issues matters

Chris McNally

of the Henrik, part you display yesterday. Second the showed question, on product

there of people some be XXXX, with of vehicles to are of of have the the sort knowhow these the sort get disclose with and the of the we when to going of built year is, that think not because [indiscernible]. it, in the enough about kind the is basically full timing credit. will Alaska, be be agreements built you again where always going questions may something that's And will about North just get I we to of that talking talk I'm when around vehicle of Foxconn the the then that of IRA kind of But that disclosure will can ask some the conscious turn America agreement. Foxconn to of that

Henrik Fisker

months. we these within three Yeah, will announce manufacturing of the I expect next vehicles that

Operator

BNP Paribas. from Picariello question from come will Our final James

James Picariello

servicing unprecedented for does it equal, the get with to be simultaneous that logistics once no have demands out especially this, on a delivery remarks prepared and startup. top ambition multi-continent Oceans Geeta's of the real to of spirit respect all met on a to the seem be a homologation these that effort, need the will wild, in in time strategy Just might

what the to efficient such company region necessarily? gate? or of after it in launch right a just focus and fashion to cost on this be Would go So the manageable out gives the not confidence more global one

Henrik Fisker

at that least. of some me Let take question

We set actually have up organization amazing quite in an already. Europe

in countries the all launch already. We people have

We all partners launch in have assigned service countries. the

type mentioned, I vehicles Geeta in And gasoline already these with we countries. need have, think available do our vehicle electric of not vehicle, the seen have all service as a We finance need. that

anybody We needed have out mobile been who something to technicians, we to reach extremely quickly. able have

I really So that We don't negative a think a see for us. hindrance a back. or really that benefit us or as it's holds something

customers have these contrary, think in to I the to all immediately. On it's be great able locations

now. concentrating are we I think, states the US, fewer right in

states about I think we're in delivering vehicles. five

of easier the because in countries, they're all So launch customers I take think the delivery But out. of we we of Europe, that is actually five most the means a where accelerate have the because also here. we main are extremely the can US, And states fast a little huge have pretty it concentrating are we on customer to that it such much laid vehicle. base ready

James Picariello

to on just are production on off about I factors know deliveries? is lot a the XX,XXX think target of range production range, a Just this to the there of a But XX,XXX side. delivery there

Henrik Fisker

yearly quite target, can frankly. just really a a half we that, is all, little speaking about year a are I talking about probably of If only misguided, take first when production

talk to think to volume that have. I we want the about daily need we

is Let's US. that in November, have is talking of many say the deliver? the those probably, Now can the can to shipment How Like Geeta many we we XX,XXX do strategy about we cars that deliver? out last we how goes vehicles. mentioned,

Christmas Geeta So going we vehicles December. to couple be then all in cars. about, of days a in Germany very just December to before still Europe. are late produced in And that the deliver the are Austria said, And in last and those vehicles to you're delivered probably deliver can made going because all these like are talking vehicles delivered be

So target up be of about to I say to volume. a XX% all our rate would get would delivery

Frank Boroch

been network question more for There's We the brands one lot in Can have of plans retail relationships other about platform. on from discussion Fisker's automotive you any charging from for and charging networks. us news a time update expansion?

Geeta Gupta-Fisker

Yes.

to been So, the provide the North America announcements various really it's and to we've our charging Europe Deftpower coverage. partnerships, and ChargePoint hear announced our with Allego about public in in customers And encouraging expanding broad network EV We're North all customer the believe charging We potential partners. open adoption fast for expanding more across America. with the very charging coverage, to better in and for discussing general.

up any just customers, drawn has a competition access standards. of the standard, It's lot experience. a innovation, thing has signed of We the agreement. our the believe We and we use We're their but customer a if helps I discussions for will anxiety agreement. is our our supports do fully Fisker there's improve has for the from homes customers. it Tesla standpoint, go. to understand charge both our US competing signature customers on to right Tesla. have we advances have have the important Europe NACS to network. absolutely From Supercharger for with whatever waiting and common whatever a

Frank Boroch

Q&A, operator? thank Great, you. today's That concludes

Operator

for would any to turn Fisker call back I remarks. over like Henrik to now closing the

Henrik Fisker

of been showed I to bit Well, that little quite I that long are for a vehicles the development thank emphasize all we want products kind that time. yesterday. points. two these come to want a in to back have One, very much. you

We They hard. have Fisker. an work extremely amazing team at

put some which be think all within to production is have of suppliers years, are with all really And next into working we We on we're the well exciting. super vehicles. vehicles as these to going I good these vehicles, able two these

car of of quite any you companies grab that in, And we competitors lot we part us for a it announced. market, see whatever go market at because look when in other frankly, a even market of to will don't huge what really a allow huge these vehicles have

something super I'm excited So that's about.

about two those excited normally to because which three EV just massive quite need of margins, – to in really companies a money you or are startup, also running gross EV means I'm obviously, cover losses, lot you obviously running raise losses. frankly, with positive an years

outstanding. we're started kind our engineered, have gross that's anticipated, think to which vehicles have team position. this even to So We I actually is of bills. just we a of program how give actually that kudos Ocean, of really finance want in And our that just margins and And overachieved. And again, for now having it's just engineering paying achieved not higher to amazing. because we We structured how this. and are program, The have amazing. some has had our the This team, I

the it's And also in I really like tough to holders. our end, Ocean. here, wait to this know I'd thank reservation for

here does we It's you. And bring up, it. actually A about we XX to read take, to got to are out to have really reviews. into we hiring said, can I vehicles are get You days amazing annoyed scaling we a boat well are that XX as But more people. like Baltimore. quicker Geeta actually lot know And it's tough wait. these all

really getting change shipping can't are But on vehicles we hundred are the we So that. several on already vehicles more boat, boats.

going. trucks more getting are We

really scaling see and in deliveries I acceleration in to here you're up. going August a think So huge already

very I'm that. So excited about

want I you this investors and of call. also, thank also partners, dialing into all our very And course to everyone. for Thank our everyone, much, all

Burkhard Huhnke

Thank you.

Operator

you participation. today's your concludes conference call. This Thank for

You may disconnect. now

Fisker (FSRNQ) 4 Aug 232023 Q2 Earnings call transcript