New York
CNN
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Fisker, the electrical automobile firm based by auto designer Henrik Fisker, introduced in its fourth quarter earnings Thursday that it won’t come up with the money for to outlive one other yr.
The corporate introduced there was “substantial doubt about Fisker’s capacity to proceed as a going concern.” To be able to have the money to do enterprise by the subsequent 12 months, the corporate should elevate more cash from traders. Fisker’s inventory was buying and selling at 75 cents a share on the shut of buying and selling Thursday and dropped to just a little greater than 40 cents this morning.
The corporate is in discussions with an current investor about presumably placing more cash into the corporate, the EV maker stated in its announcement. It can additionally lay off 15% of its workforce because it makes an attempt to chop prices.
Fisker misplaced $463.6 million whereas taking in $200 million in income within the 4th quarter of 2023. That included a $325 million adjustment associated to convertible notes. The corporate’s loss from operations was $103.5 million.
Fisker, which sells the Ocean electrical SUV, has an unusual business model wherein it has totally outsourced the manufacturing of the one mannequin it presently sells. The Ocean is inbuilt Austria by Magna, an organization that has additionally constructed automobiles for Mercedes-Benz, BMW and Jaguar.
“2023 was a difficult yr for Fisker together with delays with suppliers and different points that prevented us from delivering the Ocean SUV as rapidly as we had anticipated,” founder and chief govt Henrik stated in an announcement.
Final yr, Magna produced greater than 10,193 Fisker SUVs, however fewer than half of these had been delivered to prospects throughout the calendar yr, the corporate introduced. Fisker expects to ship about 20,000 this yr, it added.
Fisker didn’t file an official kind 10-Ok, its full annual report, for 2023 as a result of, it stated, it wanted extra time to finalize the report and that it is going to be filed by March 15. The corporate stated it had discovered ”a fabric weak point in income and the associated stability sheet accounts,” which shall be disclosed within the 10-Ok report.
Fisker’s unique marketing strategy featured direct gross sales to prospects with out an impartial vendor within the center, very like Tesla. Fisker modified that technique this yr, nevertheless, and has begun signing up franchised sellers. Thus far, the corporate has signed up 12 sellers within the US and Europe, Fisker not too long ago introduced.
Fisker is founder Henrik Fisker’s second automotive firm. His first, Fisker Automotive, produced a plug-in hybrid luxurious automotive referred to as the Fisker Karma. That firm went bankrupt in 2013 after a lot of its stock was worn out by Hurricane Sandy.
This story’s headline has been up to date to make clear Fisker’s operational future.