Cash-Strapped Fisker Drops 2024 Guidance, Scrambles For Solutions As NHTSA Probe Adds Salt To Financial Wounds

Beleaguered EV maker Fisker Inc. on Wednesday withdrew all its financial and operational guidance for 2024 as it seeks to identify options to get it out of its current financial predicament.

What Happened: The company is considering options including in- or out-of-court restructurings and capital markets transactions, it said in a filing with the Securities and Exchange Commission.

Fisker in February warned that it may not have enough funds to operate over the year. The company’s shares were delisted from the New York Stock Exchange last month owing to low share prices and potential investment talks with a major automaker collapsed, leaving Fisker's financial future uncertain. 

Fisker's cash balance dwindled from $736.5 million at the end of 2022 to $325.5 million by December 2023. The company reported a net loss of $463.6 million and revenue of $200.1 million for the fourth quarter. Despite producing around 10,200 Ocean SUVs in 2023, Fisker only managed to deliver 4,929 vehicles during the year. 

To address inventory and financing issues, Fisker initiated a six-week production pause in March. The company also announced price cuts of as much as $24,000 on its Ocean SUV last month to drive sales.

NHTSA Opens Probe: However, troubles don’t seem to end for the company. Auto safety regulator National Highway Traffic Safety Administration (NHTSA) on Wednesday initiated a preliminary probe into Fisker Ocean vehicles after receiving 14 complaints alleging that the doors on model year 2023 vehicles don’t open.

The NHTSA is also investigating Fisker on concerns over its brakes and complaints of unintended vehicle movement.

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Photo courtesy of Fisker