- Fisker warns investors in SEC filing it could seek bankruptcy protection within 30 days, as cash reserves continue to shrink.
- Fisker has been selling 2023 Ocean models at a steep discount in order to shore up cash reserves, but a larger-scale intervention from an investor is likely required.
- The EV startup plans more layoffs, in addition to a reduction of its physical footprint.
Despite having started deliveries of the Ocean SUV less than a year ago, Fisker is currently in dire straits, and has warned investors in the latest SEC filing that it could seek bankruptcy protection within a month.
The EV maker has been trying to find new sources of funding for months and was reported to be in talks with a major automaker earlier this spring, while also warning that it might not be able to continue its operations through the end of 2024.
Those talks do not appear to have resulted in an injection of capital, with Fisker now confirming it has hired financial advisors ahead of a possible filing for bankruptcy protection.
In the latest Securities and Exchange Commission filing, the EV maker said it missed an $8.4 million interest payment on March 15 and has not been able to make it in the 30-day grace period since that date.
Fisker’s prospects for continued production and operation, amid a perceived slowdown in EV demand, now look increasingly dim absent a major investment from a financial backer.
The EV maker had already idled production in Austria and has been offering steep discounts on unsold 2023 Ocean SUVs.
Still, Fisker is taking steps to right the ship, or at least slow the inevitable.
“In addition to reducing expenses, the company intends to further reduce its workforce and streamline its operations, including reducing its physical footprint,” Fisker said in a filing.
Fisker also revealed it has delivered some 6,400 Ocean SUVs as of the middle of April—a number that reflects global deliveries.
The EV maker had spent $904.9 million during 2023, and had $325.5 million in cash at the end of the year. As of the middle of April 2024, Fisker said it had some $53.9 million in readily accessible funds and an additional $11.2 million in other reserves. The company said it will need additional cash to pay its debts through 2024.
“If the strategic process is unsuccessful, our board may need to approve a liquidation or obtain relief under the US Bankruptcy Code,” Fisker warned in the filing.
Despite initially relying on direct sales, like Tesla, since the start of 2024 Fisker has started to embrace the traditional retail model and has been adding dealerships over the past few months even as it has run into financial difficulties.
In February a particularly negative review by a YouTube personality had sparked a crisis for the company. The EV maker received a delisting notice from NASDAQ the same month, with trading halting later in mid-March.
It remains to be seen if Fisker can remain afloat in the near term, but it is clear that a large cash infusion is needed soon for it to continue operations.
The underlying question, however, is whether Fisker has something that another automaker or tech giant truly needs at the moment.
Will Fisker be able to secure a bailout from a larger investor, or has the current demand for EVs made the industry wary of investments in EV companies? Let us know what you think.
Jay Ramey grew up around very strange European cars, and instead of seeking out something reliable and comfortable for his own personal use he has been drawn to the more adventurous side of the dependability spectrum. Despite being followed around by French cars for the past decade, he has somehow been able to avoid Citroën ownership, judging them too commonplace, and is currently looking at cars from the former Czechoslovakia. Jay has been with Autoweek since 2013.
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