Electric vehicle (EV) manufacturer Fisker Inc (NYSE:FSR) slashed its annual production target due to prioritizing cash for working capital needs.
In a statement Friday, the company said it had decided to scale down production this month as it grapples with a cash crunch.
The revised production target for the year now stands at just over 10,000 units, a significant reduction from the initial forecast of 13,000 to 17,000 units.
The decision to prioritize liquidity should unlock over $300 million of working capital, according to Fisker.
The company reported delivering 123 vehicles on Thursday.
In its most recent financial report, delayed due to the departure of its former accounting chief, Fisker disclosed a loss of $91 million and revenue of $71.8 million for the third quarter, both falling short of expectations.
Fisker's strategic move to streamline production aims to address immediate liquidity concerns and position the company for a more sustainable financial trajectory.
Investors rewarded the company’s fiscal responsibility by sending shares nearly 2.5% higher on Friday morning in premarket trading.