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Shares of cash-strapped Fisker fell nearly 47% on Friday after the company warned of continued concern risks, layoffs and a pause on investments in future projects until it secures a partnership with a manufacturer. did.
The company warned of a “difficult year” ahead, the latest sign of growing pain in the EV sector following weak production forecasts for Rivian and Lucid.
Fisker’s stock hit an all-time low of 38 cents, and the company was also issued a notice by the New York Stock Exchange for violating listing rules.
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High interest rates, range anxiety and high repair costs are causing consumers to reconsider purchasing EVs and opting for hybrids instead.
Brazil – 2024/02/20: In this illustrated photo, the Fisker Inc. logo is displayed on the smartphone screen. (Photo illustration by Rafael Henrique/SOPA Images/LightRocket, Getty Images) (Rafael Enrique/SOPA Images/LightRocket via Getty Images/Getty Images)
According to Visible Alpha, Fisker expects to produce 20,000 to 22,000 Ocean vehicles in 2024, which is lower than the expected 35,600 units.
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“The company’s decision to cut 15% of its workforce challenges its credibility as a growth stock, and the company’s warnings about its ability to operate as a going concern are causing investors to flee,” said Russ Mold, investment director at AJ Bell. Of course,” he said.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| FSR | Fisker Co., Ltd. | 0.48 | -0.26 | -34.81% |
Mold added that Fisker lacks the scale to compete effectively given high interest rates.
The company more than doubled its fourth-quarter net loss to $462.6 million, leaving it with $325.5 million in cash and cash equivalents at the end of 2023, compared to $527.4 million as of Sept. 30. Diminished.
Fisker also said its current resources are “insufficient” to cover the next 12 months, despite a “higher-than-usual” cash injection in the first half of 2024 from delayed deliveries of its Ocean SUV. .
LOS ANGELES, CALIFORNIA – NOVEMBER 19: Car enthusiasts drive the new Fisker Ocean all-electric vehicle during the first day of the LA Auto Show at the Los Angeles Convention Center on Friday, November 19, 2021 in Los Angeles, California. Appreciation.solar sky roof length (Allen J. Scherben/Los Angeles Times via Getty Images/Getty Images)
The company is shifting away from the direct-to-customer model, which is popular among its EV peers, to a dealer-partner model.
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Chief Executive Henrik Fisker said the company has no plans to begin “outside spending” on future projects such as the Alaska pickup truck or PEAR light vehicle unless it secures another manufacturing partner. .
He added that Fisker is in talks with major automakers about investing, co-developing an EV platform or manufacturing in North America.
