The electric vehicle manufacturer Fisker Inc. made a sobering announcement on Wednesday, retracting all financial and operational guidance for 2024 in a bid to navigate through its perilous financial waters.
Revocation of Guidance: The company disclosed that options under scrutiny included potential in-court or out-of-court restructurings and capital market transactions, as revealed in a filing with the Securities and Exchange Commission.
Earlier in February, Fisker had issued a cautionary warning about its diminishing financial reserves that might jeopardize its operations in the forthcoming months. The recent delisting of Fisker’s shares from the New York Stock Exchange stems from plummeting share values and the collapse of crucial discussions with a major automaker, painting a bleak financial landscape for the EV manufacturer.
The company witnessed a sharp decline in its cash reserves, plummeting from $736.5 million in late 2022 to $325.5 million by December 2023. With a staggering net loss of $463.6 million coupled with revenue of $200.1 million in the fourth quarter, Fisker faced hardships despite manufacturing approximately 10,200 Ocean SUVs in 2023 but delivering only 4,929 units throughout the year.
To tackle the inventory overhang and financing challenges, Fisker implemented a six-week hiatus in production in March. Furthermore, the company slashed prices by up to $24,000 on its Ocean SUV last month to reinvigorate sales figures.
NHTSA Initiated Probe: Nevertheless, misfortunes continue to besiege the beleaguered automaker. The National Highway Traffic Safety Administration (NHTSA) initiated a preliminary investigation into Fisker Ocean vehicles on Wednesday following 14 complaints alleging malfunctioning doors in the model year 2023 units.
In addition to the door malfunction complaints, NHTSA’s scrutiny extends to Fisker’s braking system integrity and reports of inadvertent vehicle movements.