The decision comes less than a month

Fisker, the California-based EV startup, cut its annual production guidance in an effort to free up $300 million in working capital, the company said in a business update Friday.

Fisker said it expects to produce about 10,000 vehicles this year.

The decision comes less than a month since Fisker cut its production target to between 13,000 and 17,000 vehicles for 2023.

The production guidance is just a quarter of Fisker’s bullish forecast from a year ago.

In November 2022, Fisker said it planned to produce 42,400 Ocean SUVs by the end of 2023 due to strong demand in the U.S. and Europe.