Fisker Inc.

conference call is being recorded. I would now like to turn the call over to Eric Goldstein, head of investor relations. Thank you. Please go ahead, sir.

Thank you, operator. Hello, everyone, and welcome to Fisker's fourth quarter and full year 2023 earnings call. As the operator mentioned, my name is Eric Goldstein, head of investor relations at Fisker. Joining me today on the call are Henrik Fisker, chief executive officer David King, Chief Technology Officer, Dr. Geeta Gupta-Fisker, Chief Financial Officer and Chief Operating Officer, and Angel Salinas, Chief Accounting Officer. Please note that today's discussion includes forward-looking statements about our expectations. Actual results in the future periods are subject to risks and uncertainties that could cause our results to differ purely from those projected. These risks include those set forth in the press release we issued earlier today, as well as those more fully described in our filings with the Securities and Exchange Commission. Today's discussion may also include certain non-GAAP measures, including non-GAAP operating expenses. The financial results discussed today are presented on a preliminary basis. Final data will be included in FISCR's annual report on Form 10-K for the period ended December 31st, 2023. With that, I'm happy to turn the call over to Henry.

Thank you, Eric. Good afternoon, everyone. Thank you for joining us today for our fourth quarter and full year 2023 earnings call. I want to start by thanking all our stakeholders, teams, and partners for all the hard work and continued progress we made in 2023. In addition, I'm very excited to introduce Angel Salinas, our chief accounting officer who joined us in early January. Angel has 28 years of public company accounting experience. He is here with us in the room, as Eric mentioned, and would be happy to answer questions, accounting related questions later on. 2023 was a challenging year for Fisker. We achieved some important milestones for the full year. Fisker produced 10,193 oceans and delivered over 4,900 across 12 countries. We are proud of what we were able to achieve, but acknowledge that these totals were below the guidance we provided during the year. Despite what we believe was the swiftest and largest delivery expansion of any EV startup company ever. Supplier delays and other issues unexpectedly hampered our ability to ramp up production and deliveries during the year. While we made good progress in solidifying our delivery network, we were not able to efficiently accommodate our backlog of the pace we and our customers desired and deserved. This led to the decision that we announced in January of a shift to a dealer partner model. In early January, we announced our dealer partner model in North America and hybrid model in Europe, a big strategic shift for Fisker. We are making significant progress on this rollout, and I'm pleased to report we already have sent our first invoices this week to several dealer groups. We have received over 250 expressions of interest from dealers across North America, Canada, and Europe. Just recently, we hosted several of these dealers at our Manhattan Beach headquarters for a presentation of the Fisker lineup vehicles. It was an exciting day looking into the strategic future of our company. We are carefully choosing our dealer partners. At the moment, we have signed up dealers who are family owned and some who want to open multiple stores for us as we grow. One example is a dealer who is interested in nine locations in North America. Another example is a European dealer group who is working on taking the entire country in Europe. That gives me great confidence that we will be able to set up a comprehensive, wide reaching dealer network in a very short time. I expect we will keep signing up multiple dealers every week during the next few months and have a comprehensive dealer work with approximately 50 dealer locations at both North America and Europe by the second half of this year. As we recognize the EV market is growing at a slower pace, we want to be prepared. We have already initiated a strategy to make our company even more lean and competitive. Specifically today, we announced a headcount reduction of approximately 15% of our workforce, mainly as a result of this shift from direct-to-consumer model to a dealer model, as well as streamlining the company in other areas. We recognize that success is not a straight line. We are bringing to the world the most sustainable electric vehicle. We knew this would be difficult, but we are in this for the long haul and are confident in our direction. We believe the ocean platform is competitively priced and has several class leading features, including a best in class range of 360 miles. But we also realize that the EV industry is going through a turbulent and unpredictable period. So we want to start this year with a more prudent plan. We currently anticipate delivering approximately 20,000 to 22,000 oceans globally in 2024. We expect sales momentum to build throughout the year as our dealer footprint expands. We continue to bolster the breadth and depth of our management team with key executive leadership hirings of seasoned and experienced executives across departments, including financing, accounting, and marketing. I want to highlight one important development regarding our senior convertible notes. On January 21, Fisker entered into a second amendment and waiver agreement with the holder of the 2025 senior convertible note. Perferring to this waiver, among other items, the company has obtained a release from the note holder relating to certain intellectual property belongings to Fisker upon the company entering into a certain commercial agreement with an automotive original equipment manufacturer, OEM. The waiver provide us with the increased flexibility to pursue strategic collaborations. Gita will speak further on the convertible notes in her remarks. On the strategic front, Fisker is in negotiations with a large automaker for a potential transaction, which could include an investment in Fisker, joint development of one or more electric vehicle platforms, and North American manufacturing. The close of any transaction would be subject to satisfaction of important conditions, including completion of the diligence and negotiations and execution of appropriate definitive agreements. Turning to the ocean. As mentioned earlier, we are proud to have delivered over 4,900 fiscal oceans in 2023. And in the fourth quarter, we produced 4,789 vehicles and delivered 3,818 vehicles. an increase of approximately 250% from Q3 to Q4. In 2023, the Fisk Ocean won six different European awards in Germany, France, Denmark, and United Kingdom for best electric vehicle, best SUV, and best product design. These accomplishments marks an important validation of a world-class product that our incredible talented team has developed. The Ocean OS 2.0 over-the-air update has already begun, which includes performance and powertrain improvements, enhancements for solar sky, improved energy management, and other user experience improvements. Additional OJ updates are planned throughout 2024. This shows how advanced and fully connected our Ocean vehicle is compared to most of our competitors. The Ocean is simply getting better and better. But I will have David King, our Chief Technology Officer, address our OTA strategy in more detail later. Let's talk about our future products. In 2023, we rolled out our vision for the future of Fisker products with a pair, a radical new segment-busting compact SUV designed to capture a large addressable market, and Alaska, a vehicle in a segment of its own. Now that several OEMs have postponed their EV programs, Alaska will sit in a unique market segment without any direct EV competitors due to its price and features. The Alaska is about the size of a Ford Ranger, but with luxuries, unique features, and bed sizes from 4.5 to 7.5 feet. Expected pricing at $45,900 and up. This is the next model we are concentrating on right now. We will only continue to invest in these programs if we complete a strategic collaboration or investment with an OEM. Sustainability. Turning to the topic of ESG and sustainability. A foundational pillar for our company, we have made a strategic move to confidently drive toward our goal of creating the most sustainable vehicles across all our programs. Our head of ESG now reports directly to our CTO This enhances ESG alignment with engineering, design, and procurement, providing more immediate access to support innovation and low impact materials and technology. Our sustainability team has the full support of these departments and continues to work with our materials engineers and design leaders that work directly and diligently to use the best quality and lowest impact materials and technology. Our carbon footprint lifecycle assessment published in 2023 clearly showed our ability to lead the industry in sustainability. We're currently working on a system to incorporate ongoing carbon footprint analytics and target setting for sustainability that will promote verifiable radical advancements. As I look back on 2023 and ahead to the remainder of 2024, while I'm well aware that sentiment on EVs has seen brighter days and our own company has experienced growing pains, My confidence in the future of Fisker remains very strong. Through the hard work of our dedicated team, I know we will continue to grow the Fisker brand and expand in our current North American and European markets and beyond. I appreciate everyone for sticking with us on this journey towards a clean, sustainable mobility future for us all. I would now like to turn the call over to our Chief Technology Officer, David King.