Click her for the PDF: The Weekly Beacon May 12 2023

We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.

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This weeks issue: Electric vehicles, Auto production, Fisker, Lucid Motors, EV earnings, EV production, Tesla, Price cuts, Banks, M&A activity, Banks buying banks, Investment banking, FOMC, FED, Consumer confidence, Jerome Powell, Political allegiances, Party before country, Polarization in 2023, Inflation, April CPI, Air Canada, Luxury demand, BRICS organization, Brazil and the world, India, China, Russia, Exports from Russia, Coffee prices, American technology.


Electric vehicle producers struggling

Who would have thought that investment bankers and EV producers would miss guide investors?

Fisker reported earnings this past Tuesday and their results were quite disappointing. Regulatory issues and production misses highlighted the quarter. The company had sales of less than $1 million during Q1 while Wall Street estimated sales would exceed $5 million. Perhaps the bigger issue came with the company’s forecast for production. Production has been pushed out even more and the number of deliveries that will be made in 2023 has shrunk yet again, this time from 42,000-43,000 deliveries in 2023 to 32,000-36,000 for the year. Second-quarter production numbers were also cut. Fisker expects to produce 1,500 vehicles during the quarter.

Fisker’s CEO blamed the regulation for the company’s recent production misses. Fisker has been working for months to get their vehicles onside with regulators. This has meant Fisker has delayed its production on multiple occasions.

Sales in the U.S. are expected to begin in June. As Fisker cut its forecast, investors seem nervous about the company’s ability to deliver. Going from producing less than 2,000 vehicles per quarter to 20,000 is extremely aggressive within one calendar year, but something that Fisker is seemingly confident in that they can accomplish.

Fisker stock was down 13% when the market opened on Tuesday, although it regained some of its losses to end the day.