Fisker is up against the wall.
The California-based electric automaker announced during its 2023 earnings call on Thursday that it has a “substantial doubt” about its “ability to continue as a going concern.”
The issue is that it doesn’t currently have enough resources to cover all of its expected expenses for the next year.
It announced that it is cutting 15% of its workforce and seeking “additional equity or debt financing” to stay afloat, but can’t guarantee that it will be available.
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Fisker’s stock dropped nearly 50% at Friday’s market open on the news.
Nevertheless, CEO Henrik Fisker said that the company is “in this for the long haul and confident in our direction.”
Fisker recently began moving away from a direct sales model to recruit franchised dealers and projects that it will deliver 20,000 to 22,000 of its Ocean SUVs globally this year.
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10,193 Oceans were built in 2023, but Fisker was only able to deliver 4,789. The model is produced for Fisker in Austria by contract manufacturer Magna.
Fisker also said it is in discussions with a “large automaker” about a potential investment and collaboration on vehicle platforms and that it has suspended investment in future model development until such an agreement can be reached.
Last year, Fisker unveiled concepts for a pickup called the Alaska and the Pear compact SUV, both of which were originally slated to be built in the U.S.