LOS ANGELES - Fisker Inc. (OTC:FSRN), an American electric vehicle manufacturer, has issued two separate voluntary recalls affecting a total of 11,201 Fisker Ocean models in North America and Europe. The recalls are due to software issues that may impact vehicle functionality.
The first recall involves a safety concern where the Motor Control Unit (MCU) and Vehicle Control Unit (VCU) software in the vehicles may trigger a safe state protection mode, potentially leading to a loss of motor power. To address this, Fisker is rolling out an over-the-air (OTA) software update to version OS 2.1 for all affected vehicles.
Additionally, the company has announced a noncompliance recall for 6,864 Fisker Oceans in the U.S. and 281 in Canada. These vehicles do not meet certain Federal Motor Vehicle Safety Standards (FMVSS) regarding gauges and telltale icons in the cluster display. The same version OS 2.1 software update will rectify these compliance issues.
The National Highway Traffic Safety Administration (NHTSA) and Transport Canada (TC) are in the process of publishing these recall notices on their websites. Fisker Oceans that have already been updated to OS 2.1 are not subject to the recalls. The company anticipates completing the OTA software updates by June 30, 2024, and has informed its dealer partners of the recall actions as of May 30, 2024. Vehicle owners are expected to be notified by June 30, 2024.
Owners seeking more information can reach out to Fisker customer service. This recall is part of Fisker's commitment to safety and compliance, as the company continues to promote its vision of offering sustainable and emotionally appealing electric vehicles. The information for this article is based on a press release statement from Fisker Inc.
In other recent news, Fisker Inc. has been making significant strides despite facing some challenges. The electric vehicle manufacturer recently delayed its Q1 report due to unresolved material weaknesses in its financial reporting controls. Amid this, Fisker is also in the process of selecting a new auditor following PricewaterhouseCoopers LLP's decision not to seek re-appointment for the 2024 fiscal year. The company is exploring strategic alternatives, including potential bankruptcy protection filings.
On a positive note, Fisker secured $3.46 million through a securities purchase agreement with an institutional investor. The funds, raised through the sale of senior secured notes, are earmarked for approved budget expenses.
In terms of business expansion, Fisker has been actively growing its dealer network, both domestically and internationally. The company added several new dealer locations across the U.S., including California, New Jersey, Missouri, Pennsylvania, and Florida. Internationally, the dealer network has expanded into Guam, Denmark, and Austria.
In a strategic move to make its electric vehicles more accessible, Fisker eliminated the Destination and Handling fee for certain 2023 models and significantly reduced the Manufacturer's Suggested Retail Price on several Ocean trims. The Ocean Extreme model, boasting an EPA-estimated range of 360 miles, is highlighted as having the longest range in its segment for an electric SUV sold in the U.S.
InvestingPro Insights
In light of the recent recalls by Fisker Inc., it is essential for investors to consider the financial health and market performance of the company. According to InvestingPro data, Fisker Inc.'s market capitalization stands at a modest $71.19 million, reflecting the size of the company within the automotive industry. Despite the challenges, InvestingPro Tips highlight that analysts anticipate sales growth in the current year, which could be a positive sign for the company's future revenue streams.
However, the company's financial metrics indicate some areas of concern. The gross profit margin for the last twelve months as of Q4 2023 is reported at a concerning -104.78%, suggesting that Fisker Inc. is spending more to produce their vehicles than they are earning from sales. Additionally, with a one-year price total return as of mid-2024 of -99.19%, the stock has experienced a significant decline, indicating a period of substantial investor skepticism.
Investors should also note that Fisker Inc. does not pay a dividend, which could be a factor for those seeking income-generating investments. For a more comprehensive analysis, including additional InvestingPro Tips, investors can explore further at InvestingPro. There are 17 additional tips available, which could provide deeper insights into the company's financials and market expectations. To enhance your investment research on Fisker Inc., use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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