Fisker posts larger-than-expected quarterly loss, flags material weakness in financials

(Reuters) -Electric-vehicle startup Fisker (NYSE:) reported a larger-than-expected loss for the third quarter on Monday and flagged weakness in the company’s internal control over financial reporting.

The company’s shares fell nearly 10% to $3.72 after the bell.

“In the course of completing the preparation of the report, the company determined that it has material weaknesses in the company’s internal control over financial reporting,” Fisker said.

Fisker had delayed its results from Nov. 8, blaming the delay on completion of financial statements and related disclosures on departure of former chief accounting officer.

The EV company reported a loss of $91 million, compared with a loss of $149.3 million a year earlier. Analysts were expecting a loss of $75 million, according to Visible Alpha.

Demand for electric vehicles in the United States has slowed in recent quarters as persistent inflation and high interest rates force consumers to pull back on big-ticket purchases.

EV makers have resorted to price cuts after market leader Tesla (NASDAQ:) started a profit-sapping price war in January to stoke demand.

Fisker said production totaled 4,725 Ocean SUVs in the third quarter and the company delivered 1,097 vehicles.

The California-based company reported revenue of $71.8 million in the quarter ended Sept. 30, compared with analysts’ estimates of $82.97 million.

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