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The future of Fisker looks grim. The company admitted on Friday it might only be a year away from going out of business following a net loss of over $463 million in 2023. But not all hope is lost. The company says it’s negotiating with a “large automaker” that could bring additional investment, joint vehicle development opportunities, and North American manufacturing.
Fisker made no indication of which automaker it’s negotiating with. Judging from the electric brand’s statement, the potential partner has a manufacturing footprint in North America. But such a partnership is still a ways off from becoming reality.
“The closing of any transaction would be subject to satisfaction of important conditions, including completion of due diligence and negotiation and execution of appropriate definitive agreements,” said CEO Henrik Fisker.
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Other statements in Fisker’s 2023 year-end financial report paint a dark picture about the automaker’s future. Currently, the company doesn’t have enough money to stay in business for the next 12 months.
“The company will need to seek additional equity or debt financing, and there can be no assurance that Fisker will be successful in these efforts,” the announcement said.
Fisker is cutting costs by reducing its workforce by 15 percent. Most of these folks would be in the sales strategy roles, as the company is switching from direct-to-consumer sales, like Tesla, to a dealer model, like most traditional automakers.
There are currently 13 locations with Fisker has signed 13 dealer partners for locations in North America and Europe. The company claims to have over 250 expressions of interest in the two regions for additional dealer locations. The automaker expects to deliver 20,000 to 22,000 Oceans worldwide in 2024.
Fisker contracts Magna-Steyr to build the Ocean electric SUV. The company made 10,193 examples in 2023 but only delivered 4,929 during the year. Buyers have paid for most of the undelivered vehicles, expecting the automaker to move them in the first quarter of 2024.
If Fisker gets the money it needs, the company plans to prioritize the Alaska electric pickup’s development, according to our colleagues at InsideEVs. “We see that the biggest opportunity for growth and I think profitability, and getting speed to market is with the Alaska, so the internal team are now focused on Alaska,” Henrik Fisker said.
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