Fisker, the company behind the all-electric Ocean crossover, is in a dire financial situation, with only around $50 million left in the bank according to the latest 10-K form filed with the Securities and Exchange Commission. The document reveals that the California-based company may face bankruptcy if it does not receive a cash infusion soon. Fisker spent over $70 million per month on average in the last year and currently has only $50 million available. Without emergency liquidity, the company may run out of money in less than 30 days.
The 10-K form filed with the SEC shows that Fisker burned through $904.9 million in 2023 for operating and investing activities. With cash and cash equivalents of $53.9 million (unrestricted) and $11.2 million (restricted) as of April 16, 2024, Fisker’s cash reserves have significantly decreased from the previous year. The company will likely be out of business in less than a month if no additional investments are secured, given its high monthly spending in 2023. Fisker has mentioned in the filing that there is doubt about its ability to continue as a going concern.
The company has delivered over 6,400 Ocean EVs to customers as of April 16, 2024, out of approximately 11,193 cars that were built. Despite price cuts of up to $24,000 on inventory vehicles, Fisker only delivered around 171 vehicles after the reduced pricing went into effect. This has left the company with nearly 4,800 cars still in inventory. Fisker has also laid off approximately 425 employees between January and April 2024, reducing its workforce by 27%. The company has cited issues with suppliers as one of the factors contributing to its financial troubles.
Fisker had three additional electric models lined up for the future: the affordable Pear, the flagship four-door Ronin convertible, and the mid-size Alaska pickup. The company failed to make an interest payment of approximately $8.4 million in cash on March 15 and may seek protection under bankruptcy laws if relief is not received from debt holders and liquidity is not infused. With the drop in production and deliveries, as well as the financial strain, Fisker’s future is uncertain without a turnaround in its financial situation.
If the current situation continues, Fisker may be forced to file for bankruptcy within the next month. The company’s struggles are evident in its financial statements, with a significant decrease in cash reserves and high monthly spending. Despite efforts to increase sales through price cuts, delivery numbers remain low, leaving Fisker with a large inventory of unsold vehicles. Without a significant cash infusion and support from debt holders, Fisker’s prospects for survival are dim, and the company faces an uncertain future in the electric vehicle market.