Alex Wong
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Fisker (FSR) is in free fall after hours, with doubts about its ability to continue as a going concern. (00:24) Lordstown Motors (OTCPK:RIDEQ) was accused by the SEC of misleading investors. (01:38) Cyber threats: Biden orders investigation into security risks posed by Chinese cars. (02:21)
This is a summary transcript of the podcast.
Fisker (NYSE:FSR) has expressed doubts about its ability to continue as a going concern after a difficult year made worse by high interest rates and an inability to deliver its Ocean SUV as quickly as expected. Following the announcement, the stock price fell sharply in after-hours trading on Thursday.
Unless Fisker (FSR) is successful in obtaining additional equity or debt financing and transitioning to a new dealer-partner model, Fisker (FSR) may reduce its planned level of investment in product development, reduce operations, Fisker Ocean will be forced to cut back on production. Any of these could have an adverse effect on Fisker's (FSR) business and financial outlook.
The company is currently in talks with major automakers for potential deals that could include an investment in the company and/or co-development of one or more electric vehicle platforms, potentially helping it break out of its death spiral. There is hope that it can be done. Fisker (FSR) is also in talks with existing bondholders about additional investment.
The company also plans to reduce its workforce by 15% in connection with shifting its sales strategy to a dealer-partner model.
The California-based EV maker reported a loss of $2.22 per share in 2023 on revenue of $272.9 million. In comparison, last year's revenue was $342 million, a loss of $1.80.
The Securities and Exchange Commission on Thursday accused Lordstown Motors (OTCPK:RIDEQ) of misleading investors about sales prospects for its flagship electric pickup truck.
Lordstown (OTCPK:RIDEQ) overstated demand for the Endurance, claiming the company received more than 100,000 non-binding pre-orders from commercial fleet customers, according to the SEC's settlement order. In fact, most of the pre-orders came from companies that don't operate vehicles or have no plans to buy trucks for their own use.
The SEC's order also found that Lordstown misrepresented the company's schedule for Endurance deliveries, failing in part to account for production delays caused by Lordstown's inability to access many critical parts.
Lordstown closed Thursday at +12%.
President Joe Biden has warned that Chinese-made vehicles pose a risk to U.S. national security. He directed Commerce Secretary Gina Raimondo to launch an investigation into connected cars using technology from countries of concern.This may restrict the use of certain auto parts in the United States
Biden warned that China's connected vehicles could collect sensitive data about American citizens and infrastructure and send that data back to the Chinese government.
He noted that China has imposed restrictions on vehicles manufactured in the United States and abroad.
The investigation is the latest step by the Biden administration to protect U.S. manufacturing from the threat of Chinese cyberattacks. The company recently issued an executive order to improve maritime cybersecurity amid concerns about the growing presence of Chinese manufacturing in key U.S. ports.
Other notable articles on Seeking Alpha:
Elon Musk's Neuralink cited by FDA for research quality control issues – report
Figure AI confirms $675 million in funding from Bezos, Nvidia, and others. Announces agreement with OpenAI
In Catalyst Watch of the day,
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Key data reports are expected to include delivery reports from NIO (NIO), XPeng (XPEV), and Li Auto (LI).
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Investors will also be keeping an eye on the monthly Macau gaming gross revenue report.
Trading was mixed through much of Thursday, but U.S. stocks ultimately ended higher following late gains.
The Nasdaq market (COMP.IND) rose 0.90%, hitting a new closing high. The S&P 500 (SP500) rose 0.52% and the Dow Jones Industrial Average (DJI) rose 0.12%.
Nine of the S&P's 11 sectors ended in the green.
Ahead of the start of regular trading, the U.S. Bureau of Economic Analysis released its Personal Income and Expenditure Report for January. Data showed the core personal consumption expenditures (PCE) price index – the Fed's preferred inflation measure – rose 0.4% month-over-month, matching expectations of +0.4% but accelerating from a 0.1% rise in December 2023. . This number was also the highest since February last year.
On a year-over-year basis, the core PCE price index was +2.8%, also in line with expectations and slowing slightly from December's +2.9% rise.
Now let's take a look at the market price as of 6am. Dow, S&P, and Nasdaq futures are in the red ahead of today's opening bell. The Dow fell 0.17%, the S&P 500 fell 0.17% and the Nasdaq fell 0.1%. Crude oil rose 1.4% to more than $79 a barrel. Bitcoin fell 1.3% to over $62,000.
In global markets, the FTSE 100 rose 0.6% and the DAX rose 0.4%.
The day's biggest pre-market mover was SoundHound AI (NASDAQ:SOUN), which fell 20% after missing fourth-quarter profit estimates.
Today's economic calendar:
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10:15 Fed's Christopher Waller: “Response to a paper titled 'Global Quantitative Tightening: What Have We Learned?' at the 2024 U.S. Monetary Policy Forum.”
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1:30 p.m. San Francisco Fed President Mary Daly will participate in a panel discussion titled “AI and the Labor Market” ahead of the 2024 U.S. Monetary Policy Forum.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
