Fisker cuts 15% of staff, seeks partner on going-concern woe

LOS ANGELES: Fisker Inc. plans to cut 15% of its workforce as the electric-vehicle maker faces "substantial doubt” about its ability to continue operating if it can’t secure new financing.

The company’s chief executive officer, Henrik Fisker, said Thursday he’s in talks with another automaker for an investment lifeline.

"It’s narrowed down to one large carmaker and I hope we can close this deal soon,” the CEO said in an interview, declining to name the other party involved.

The headcount reduction largely impacts sales staff and comes as Fisker said in a statement that its current capital may not be enough to sustain it over the next 12 months without additional funds.

It reported cash and equivalents of US$325.5 million as of Dec 31, well below a US$502.3 million average analyst estimates compiled by Bloomberg.

Fisker estimates it has about US$500 million split between its vehicle and parts inventories, with current sales generating more cash, the CEO said.

The disclosures are the latest setback for a company that has struggled with production issues, technical glitches and criticism from short sellers.

EV makers of all sizes are also grappling with an industrywide slowdown in sales growth as consumer demand wanes.

Fisker recorded US$200.1 million in fourth-quarter sales, short of analyst estimates for US$272.9 million.

The company projected deliveries of between 20,000 and 22,000 EVs this year. It delivered 4,929 for all of 2023.
Autos Fisker