Thursday, April 25, 2024
NewsFisker Says "Substantial Doubt" About Company on Earnings Call

Fisker Says “Substantial Doubt” About Company on Earnings Call

Fisker in financial trouble

  • Fisker losses pile up

  • Automaker is in negotiations with other car companies

In the company’s earnings call yesterday, electric automaker Fisker was heavy on the doom and gloom. The company said it expects “substantial doubt” about its ability to continue and is in negotiations with a large automaker to help keep it going.

The news wasn’t all bad. Fisker reported that its Q4 2023 revenues were up $128m over the quarter before to $200.1m. Losses, though, were $463m for the quarter. Deliveries reached 3,818, which was the majority of the 4,929 vehicles the company delivered in the year. Production reached 10,193 for the year.

“2023 was a challenging year for Fisker, including delays with suppliers and other issues that prevented us from delivering the Ocean SUV as quickly as we had expected,” Chairman and CEO Henrik Fisker said. “We also encountered unexpected headwinds in our efforts to establish a direct-to-consumer sales model in both North America and Europe at the same time.”

The company said that its business plan was highly dependent on its move to a new dealer partner model. But currently, the company does not have sufficient resources for the next 12 months. Fisker said it would need to seek more equity or debt financing and that if it couldn’t hit those goals, the company would have to scale back.

To help solve the problem, Fisker said it is in discussions with an existing debt holder about making a larger investment into the company. it is also in negotiations with a “large automaker” that it predicts could result in an investment in the company, joint platform development, and North American manufacturing.

Fisker is targeting sales to customers and dealers of 20-22,000 vehicles this year and expecting an average selling price in the $56,000-$62,000 range.



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