Car manufacturer Fisker’s shares fell by nearly 9% on Friday after ‘supply chain issues’ forced it to cut its annual production target.
The company is planning to produce between 20,000 to 30,000 vehicles, which is down from 32,000 to 36,000 projected in May 2023.
It has since blamed the reduction on a key supplier which needed more time to time to ‘lift capacity’ in order to meet its schedule.
Henrik Fisker, CEO of Fisker said that despite the setback, the company expects to have this problem resolved by August 2023, adding that it is aiming to produce 6,000 vehicles a month later this year.
Fisker also raised its annual expenses projection to between US$565 million and $640 million, up from US$535 million to $610 million, general and administrative costs, as well as on higher selling.
There have been ongoing shortages within the electric vehicle market due to issues with batteries. And in July 2023, it was reported that General Motors was also facing supply chain difficulties in production due to such shortages.
BrightDrop—a GM startup brand that’s building last-mile delivery vans for companies like FedEx and Verizon—has stopped building EVs at its plant in Ingersoll, Canada, due to a lack of Ultium battery cells.