Thursday, April 25, 2024
NewsFisker Inc Pauses Production to Cut Inventory, Raise Cash

Fisker Inc Pauses Production to Cut Inventory, Raise Cash

Fisker's troubles continue

  • Fisker has 4,700 cars, 1,300 sales

  • Automaker was very cautious in last earnings call

Fisker has just stopped production for the next six weeks. The move is the latest sign that the electric car startup is in trouble.

The automaker warned strongly about the company’s performance in its last earnings call when it said that it might run out of cash before the end of the year. Then reports surfaced saying it had reported bankruptcy advisors.

With around 4,700 vehicles in inventory, the company has nearly four times as many on hand as it has sold this year. That’s the reason for production stopping for six weeks until May. The company needs the time to sell those cars to raise cash and work to secure other financing. The company failed to file its annual report with the Securities and Exchange Commission and reportedly has just $121 million in cash. The company said that “we have concluded there is substantial doubt as to our ability to continue as a going concern.”

However, the latest announcement from Fisker said that it has secured a commitment from an existing investor for an additional $150m in financing. It is still in negotiations with a larger automaker that could include joint vehicle development or a new investment.

Fisker does not build its EVs itself. The company outsources production to Magna Steyr, which builds the vehicles in Austria. This is not founder Henrik Fisker’s first automotive startup. The designer, who has worked for BMW, Ford, and Aston Martin, founded Fisker Automotive in 2007 and resigned in 2013 before the company folded in 2014. His current automaker, Fisker Inc, was founded in 2016.


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