Fisker Software Issues
Fisker Inc. has announced a delay in the launch of its debut electric SUV due to issues with software integration. The company has been experiencing glitches in the software, which has caused delays in testing and troubleshooting. This news comes after the company delivered its first Ocean last week, which is now reportedly on its way back to the manufacturer’s plant in Austria because it is inoperable due to software issues.
The Los Angeles-based EV startup has now cut its forecast for Ocean production this year by at least 15%, citing changes to timelines for regulatory approvals and supplier readiness. It is now expecting output of between 32,000 and 36,000 vehicles, down from 42,400 previously. The company has also postponed the launch of its second EV, which will be made by Foxconn Technology Group, from 2024 to 2025.
Fisker is not alone in experiencing software-related issues in the EV industry. German automaker Volkswagen AG has also encountered similar problems with its new EVs. The company recently appointed a new leader to oversee its division called Cariad, which is responsible for the development of the software for its upcoming electric cars.
In response to the delay, Fisker said in a statement that its vehicles will be updated over-the-air this year after launching with a basic driver-assistance system. The company also categorically denied that the Fisker Ocean can be driven at only low speeds. However, sources familiar with the matter estimate that it could take several months to iron out the software glitches.
Fisker went public through a reverse merger in 2020 and reported about $198,000 of revenue for the first quarter of this year, short of the $4.64 million average estimate of analyst’s forecasts.. Last year, the company said Magna could make as many as 50,000 Oceans in 2023, while reservations for the SUV have hovered around 65,000.
Fisker’s delay in the launch of its electric SUV due to software issues highlights the challenges of transitioning from presenting a prototype to full-scale production, even for established automakers. With the rise of EVs, software integration is becoming increasingly important, and companies must ensure that their software is robust and free of glitches to avoid costly delays and negative impacts on their reputation.
FSR Stock Forecast & Analysis
Based on the Fisker Inc stock forecast from 8 analysts, the average analyst target price for Fisker Inc is USD 10.67 over the next 12 months. This represents a potential increase of around 61% from the current stock price. Fisker Inc’s average analyst rating is Buy, indicating that the company is seen as a good investment opportunity by most analysts.
Stock Target Advisor rates Fisker Inc’s stock as Very Bearish, based on 0 positive signals and 9 negative signals. This suggests that the Stock Target Advsior sees Fisker Inc’s stock as having a high potential for future losses.
At the last closing, Fisker Inc’s stock price was USD 6.62. While the stock has experienced a positive increase of +21.47% over the past week and +22.82% over the past month, it has seen a negative change of -33.93% over the last year.
The overall outlook for Fisker Inc is mixed, while the company has faced significant setbacks in its production process, its debut electric SUV has generated significant interest and the company has garnered attention from investors. It remains to be seen whether the company will be able to resolve its software issues and meet its production targets.