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L.A.-area EV maker Fisker cuts 15% of staff as it runs low on funds

A Fisker Ocean electric vehicle
Car enthusiasts view a Fisker Ocean electric vehicle at the 2021 LA Auto Show. The EV maker said Thursday it plans to lay off 15% of its staff and that it might not be able to operate for another year without new financing.
(Allen J. Schaben / Los Angeles Times)
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Fisker Inc. plans to cut 15% of its workforce as the electric-vehicle maker faces “substantial doubt” about its ability to continue operating if it can’t secure new financing.

The Manhattan Beach company’s chief executive, Henrik Fisker, said Thursday he’s in talks with another automaker for an investment lifeline.

“It’s narrowed down to one large carmaker, and I hope we can close this deal soon,” Fisker said in an interview, declining to name the other party involved.

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The head count reduction largely affects sales staff and comes as Fisker said in a statement that its current capital may not be enough to sustain it over the next 12 months without additional funds. It reported cash and equivalents of $325.5 million as of Dec. 31, well below a $502.3 million average analyst estimates compiled by Bloomberg.

Fisker estimates it has about $500 million split between its vehicle and parts inventories, with current sales generating more cash, the CEO said.

California electric vehicle sales dropped significantly in the last half of 2023, raising questions about the state’s ability to phase out gas-powered cars.

Feb. 15, 2024

The disclosures are the latest setback for a company that has struggled with production issues, technical glitches and criticism from short sellers. EV makers of all sizes are also grappling with an industrywide slowdown in sales growth as consumer demand wanes.

Fisker recorded $200.1 million in fourth-quarter sales, short of analyst estimates for $272.9 million.

The company projected deliveries of 20,000 to 22,000 EVs this year. It delivered 4,929 for all of 2023.

Fisker’s shares tumbled 33% in after-market trading to about 49 cents. They fell 76% last year and trade well below their 2021 peak.

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