April 19, 2024


Fisker might be the next electric vehicle startup to fail, joining the likes of Aptera and Detroit Automotive.

The Manhattan Beach, California-based company has been warning investors that it might run out of cash by the end of the year and has reportedly hired advisors in preparation of a possible bankruptcy. Now, Fisker is saying it will stop all production for the next six weeks.

The company has about 4,700 vehicles on hand, which it claims are worth more than $200 million, and delivered 1,300 EVs this year. But, beginning Monday, Fisker plans to stop production until May to “align inventory levels and progress strategic and financing initiatives.”

The startup also said it wants to raise up to $150 million by selling convertible notes as it struggles to stay afloat.

Fisker disclosed Monday that it failed to make a $8.4 million interest payment on March 15 for some convertible notes due in 2026 despite having the liquidity, according to a regulatory filing. The company wants to take advantage of a 30-day grace period to discuss its capital structure with select shareholders.

Fisker also disclosed that it failed to file its annual report with the U.S. Securities and Exchange Commission on Friday. The company used $906 million in cash in 2023 and ended the year with $325.5 million, compared to $735.5 million in 2022.

As of Friday, Fisker has just $120.9 million cash on hand, and said “we have concluded there is substantial doubt as to our ability to continue as a going concern.”

The EV maker has engaged in a series of cost-cutting measures recently; Fisker has cut 15% of its workforce and moved away from the direct-sale model to dealerships, which it said could help save money. Fisker has routinely cited “continuing negotiations” with a large automaker for a potential deal, which could include an investment of joint venture, although it’s unclear if any progress has been made.

“We are aware that the industry has entered a turbulent, and unpredictable period,” CEO Henrik Fisker said in a statement last month.“With that understanding and taking the lessons learned from 2023, we have put a plan in place to streamline the company as we prepare for another difficult year.”

A short seller in 2022 released a report alleging Fisker’s access to funds is limited by undisclosed bank guarantees to Austrian manufacturer Magna Steyr. Fisker was also accused of basing the Ocean’s platform on that of a Chinese crossover also made by Magna Steyr. Fisker has denied both claims.

The Ocean has also been the source of more than 100 complaints filed with the National Highway Traffic Safety Administration, which is investigating the reports. Owners have reported instances of their vehicles suddenly losing power and seeing their SUVs’ front hoods flying up when driving at high speeds.

Fisker’s founders and board of directors have also been sued by shareholders in federal court in California for allegedly failing to disclose material weaknesses in its financial reporting, inaccurate accounting, and delivery limitations.

Fisker stock dropped 13% in trading Monday and is trading at 15 cents per share, well below its February 2021 peak of $28.50 per share.



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