2023 Fisker Ocean on 2040-cars

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Fisker is laying off 15% of staff and says it needs more cash ahead of a 'difficult year'

Electric vehicle startup Fisker is planning to lay off 15% of its workforce and says it likely does not have enough cash on hand to survive the next 12 months. The company says it is trying to find a way to raise that money as it works through a pivot from direct sales to a dealership model. "[W]e have put a plan in place to streamline the company as we prepare for another difficult year," founder and CEO Henrik Fisker said in a statement. Fisker reported more than 1,300 employees as of the end of September 2023, meaning the cut could affect close to 200 people. The company's share price plunged 35% in after-hours trading. Fisker said Thursday that it finished 2023 with $396 million in cash, though $70 million of that is restricted. The company says it is talking with one of its lenders about making "an additional investment" in the company. It also claims it is "in negotiations with a large automaker for a potential transaction which could include an investment in Fisker, joint development of one or more electric vehicle platforms, and North America manufacturing." A partnership like that will be crucial, as Fisker executives said on a call Thursday that it won't invest any more money in its future products unless it works with another automaker. That means the fates of a pickup truck, compact EV and other models that Fisker has teased are now in question. The company's financial struggles come as it is trying to move to a wholesale model built around partnerships with dealers, a shift that Fisker says has "negatively impacted" its sales so far. It's currently sitting on inventory of thousands of vehicles that are collectively worth more than $500 million. Fisker says it has received interest from around 250 dealerships but has only signed up 13 to date. Fisker has also been dealing with a number of problems with its Ocean SUV, its only model so far, as TechCrunch reported earlier this month. The company has said it resolved some issues with a software update in December and planned to fix many more in a larger 2.0 update earlier this month, but that only started making its way to customer vehicles this week. It is currently being investigated by the National Highway Traffic Safety Administration for reports of sudden brake failure, as well as for a handful of vehicle rollaway incidents. A number of big automakers are pulling back on their aggressive EV targets, and newer players are having trouble as well.

Fisker scales back production to divert cash for working capital

Electric-vehicle maker Fisker said on Friday it will scale down production this month and produce fewer cars this year than its previous guidance, to prioritize cash for working capital needs. Shares of the EV maker, which has been struggling with a cash crunch, rose 7% in premarket. "Fisker has made a strategic decision to reduce December production to prioritize liquidity to unlock over $300 million of working capital," the company said. Fisker cut its production target for the year — at least a second time — to just over 10,000 units, compared with its earlier forecast of 13,000 to 17,000. The company said it delivered 123 vehicles on Thursday, adding it plans to accelerates sale and deliveries despite the tough market conditions for EVs. Some EV firms are facing dwindling cash reserves, pressured by high costs related to production ramp-ups and inflation and price cuts by rivals such Tesla. In its most recent financial results, which were filed after a delay due to the departure of its former accounting chief, Fisker reported a loss of $91 million and revenue of $71.8 million for the third quarter, both missing expectations. Green Plants/Manufacturing Fisker Electric

The $130,000 Fisker EMotion can be reserved for just $2,000

Just as Tesla did with the Model 3, Fisker is taking reservations for its upcoming EMotion electric sedan at its website. Deposits for the Fisker are a bit pricier than those for the Model 3, though, at $2,000 per reservation. Model 3 deposits were half of that. Of course, at a base price of $129,900, the EMotion is also about three to four times more than the target cost of the Model 3. There's also an interesting stipulation with reserving cars: Only three are allowed per person. We're not really sure why someone would need to order sizable batches of any car, but maybe it's just going to be that good. View 14 Photos The previously revealed specifications are certainly ambitious. Fisker says the car will be capable of going 400 miles on a charge, and that it will be able to pick up an extra 100 miles in 9 minutes of charging on a proprietary charging system. The car features autonomous technology, too, and some of the sensors are smartly hidden in the front chrome "grille." That faux grille and other styling details are all on display in an array of new photos and a video, all of which are shown above. The video shows the car in great detail as it slowly cruises past the overt "green" imagery of windmills and solar panels. Related Video: Image Credit: Fisker Green Fisker Green Automakers Technology Emerging Technologies Electric Luxury Sedan