Fisker Inc. (NYSE: FSR), an EV manufacturing firm based in the U.S., recently announced that it was in talks with Nissan. This comes a day after the firm’s CEO announced that they were involved in talks of capital infusion from another car manufacturer.
The CEO, Henrik Fisker, also gave a going-concern warning, which suggests stress in a market whose consumer demand seems to be dwindling while growth slows down.
In addition to this, the EV company announced plans to reduce its workforce by 15%, reporting that its earnings were lower than expected. Further, the firm revealed that it was experiencing technical glitches and issues with production, as well as criticism from short sellers.
It should be noted that Fisker isn’t the only affected company. Electric vehicle manufacturers of all sizes are struggling with slow growth in sales as demand from consumers declines.
Nissan, a multinational manufacturer of automobiles, may invest in Fisker’s truck platform, which may save the firm from premature closure.
Prior to news of a potential rescue by Nissan, Fisher’s shares had plunged by almost 50%. However, once news broke, share performance improved. In 2023, the firm’s shares had dipped by over 75% and were trading well below its 2021 peak.
Last month, Fisker released a statement highlighting that its capital wasn’t enough to sustain operations over the next year, adding that additional funding was needed. The company reported that as of December 31st 2023, cash and equivalents totalled about $325 million. This is significantly lower than the $502 million average that analysts had estimated.
Last year’s 4th quarter sales totalled $200.1 million, which is short of analyst estimates by about $72 million.
Fisker then noted that there was significant doubt about the firm’s ability to carry on with operations, especially with the capital challenges. It estimated that it had about half a billion split between its parts and vehicle inventories, even as current sales bring in additional funds.
With regard to deliveries, Fisker delivered 4,929 electric vehicles in total last year. This is considerably lower than its 2023 production guidance, which ranged from 20,000-23,000 vehicles.
The company commenced production of its first electric vehicle in November 2022 and began deliveries to customers in June 2023.
This year, its projected deliveries range between 20,000-22,000 electric vehicles. Fisker’s vehicles include Alaska, a 4-door pickup truck; Pear, an agile urban lifestyle car; Ronin, a 4-door convertible GT sports car; and its recently launched Fisker Ocean.
About BillionDollarClub
BillionDollarClub (“BDC”) is a specialized communications platform with a focus on the biggest and brightest companies covered by IBN. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, BDC is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, BDC brings its clients unparalleled recognition and brand awareness.
BDC is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from BillionDollarClub, text “Billion” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.BillionDollarClub.com
Please see full terms of use and disclaimers on the BillionDollarClub website applicable to all content provided by BDC, wherever published or re-published: https://www.BillionDollarClub.com/Disclaimer
BillionDollarClub
Los Angeles, CA
www.BillionDollarClub.com
310.299.1717 Office
Editor@BillionDollarClub.com
BillionDollarClub is powered by IBN
