Shares of EV start-up Fisker (FSR -8.77%) were falling today on a down day in EV stocks due to twin warnings from ON Semiconductor and a production cut from Panasonic, both of which signal more tough times ahead for the electric vehicle industry.
As a result, Fisker stock finished 8.7% on the day, while Tesla and Rivian were also down.
Image source: Fisker.
Fisker hits the brakes again
Signs are mounting of a slowdown in electric vehicle demand, as a number of manufacturers are cutting back on production, lowering prices, or making other moves in response to changing market dynamics.
Today, ON Semiconductor, a key supplier for the EV industry, plunged after offering disappointing guidance for the fourth quarter. The company said that some European automotive customers are working through inventory, therefore cutting back on demand.
At the same time, Panasonic, a supplier to Tesla, cut the profit outlook for its battery unit, as it warned of slowing demand for high-end electric vehicles. Investors interpreted that as a warning for Tesla’s peers, including Fisker, as well.
Can Fisker bounce back?
Fisker shares fell just last week when the company said it would cut prices on the highest-priced version of its Fisker Ocean SUV, which is just beginning to be delivered to customers.
That news, coming after most of its peers have cut prices on their EV models, did not inspire confidence among investors, especially since the company has finally just begun to sell its vehicles.
Fisker’s third-quarter earnings report is expected in the next couple of weeks, which will give investors a key update on sales, but the company remains at the mercy of the broader EV market. That will make it difficult for the stock to recover until supply and demand reestablish equilibrium in the industry.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends ON Semiconductor. The Motley Fool has a disclosure policy.
