What happened
Fisker (NYSE: FSR) reported second-quarter vehicle production figures this morning, and the market is interpreting it as a green flag. While the announcement wasn't completely positive, investors are instead focusing on the positives and positioning the electric vehicle maker's stock to end the week higher than where it began.
As of 12:05 a.m. ET on Friday, shares of Fisker are up 7.5%.
So what
Producing 1,022 Ocean SUVs in the second quarter, Fisker failed to achieve its targeted production volume of 1,400 to 1,700 vehicles due to weak links in the supply chain. According to management, a few of its suppliers "had challenges ramping to the targeted Q2 levels, as they did not receive components from sub-suppliers in a timely manner."
Instead of punishing Fisker for its production shortcomings, investors are more focused on the company's assertion that at the end of last month, it surpassed its daily assembly-rate target: 80 vehicles. Consequently, Fisker expects to produce 1,400 vehicles in the coming weeks. Should it achieve this feat, it will mean that the supply chain complications only resulted in a temporary delay of Fisker meeting the production target.
The company didn't provide commentary on whether it remains on track or not to achieve its 2023 production target of 32,000 to 36,000 vehicles.
Deliveries of the Ocean SUV to U.S. customers began in late June.
Now what
While the company failed to achieve its second-quarter production target, it appears confident that reaching the lower end of its targeted range is within sight and should be accomplished in the coming weeks. If it makes good on this expectation, it will certainly be an encouraging sign for this upstart EV company.
Those looking to power their portfolios with Fisker stock shouldn't solely focus on the company's quarterly production figures, though. They should also be interested in the company's second-quarter financial results, which it expects to report before the market opens on Aug. 4.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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