Beleaguered EV maker Fisker Inc. said on Tuesday that it expects to seek protection under bankruptcy laws within 30 days if unable to receive waivers from its debt holders or raise enough capital to settle its dues.
What Happened: The company is seeking to restructure its current debts and discussing financing alternatives, it said in a regulatory filing, while adding that there is no assurance it will be able to do either.
Additionally, the company will reduce its workforce and streamline its operations in a bid to cut costs, it added.
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 in March owing to low share prices and potential investment talks with a major automaker collapsed, leaving Fisker’s financial future uncertain.
Why It Matters: 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.
Fisker is not alone in its troubles. EV maker Canoo Inc. warned about its ability to continue as a going concern without additional funding earlier this month. Lordstown Motors filed for bankruptcy protection last year.
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