Electric vehicle brand Fisker said in its annual earnings report that it may not have enough cash to last the year as it stressed the importance of finalizing potential agreements with a lender and automaker.
The EV startup held roughly $325 million in cash at the start of 2024, down substantially from $736 million the year before. During 2023, the company generated total revenues of $272 million but recorded a net loss of $761 million. Although Fisker’s operational losses softened over the course of last year, its combined losses deepened, falling more than $214 million from 2022’s $547 million.
“2023 was a challenging year for Fisker,” remarked company chairman and CEO Henrik Fisker, who cited a variety of issues that had a negative impact on the brand’s sales. One of the primary difficulties referenced was the business’s effort to transition from a direct sales model to a franchise model. Unable to ramp up its direct-to-consumer sales in a timely manner, Fisker opted to launch a dealer-partner program, which it reported had received interest from roughly 250 retailers. However, only 13 of those have since formed an agreement, limiting the EV startup’s ability to access broader markets.
While the company is strapped for cash and unable to sell its vehicles, of which it has thousands ready to ship, executives indicated it might be able to survive the next year if negotiations with potential business partners go according to plan. Fisker said it is in talks with a lender who may provide additional funds to the business under the stipulation that it can arrange a deal with another automaker. To that end, the company is presently discussing terms with a larger car manufacturer, which, if agreed upon, would include an investment into its operations, U.S. manufacturing support, and joint development of at least one EV platform.
Unfortunately, those deals will do little to provide the much-needed cash Fisker requires to survive the next months. To save costs, the company confirmed it will lay off roughly 15% of its workforce, a decision that will affect roughly positions.
