Written by Cláudio Afonso | [email protected] | LinkedIn | X
During an all-hands meeting with staff on Thursday, Fisker Chief executive Henrik Fisker informed employees that discussions are underway with four automakers regarding a potential acquisition.
However, he also cautioned that the company faces the risk of closure this year if the acquisition talks end up with no deal, as reported by BI.
“We still have some time to get other offers on Fisker. We do have four car companies that have signed NDAs. However, they obviously need time to get to some diligence,” Henrik told employees.
Fisker shares surged over 50 percent on the news to $0.063 as of the time of writing.
Since the stock was delisted from the New York stock exchange, the share price tumbled to a new low of $0.0203 in the OTC market on April 12. However, the shares surged over 350 percent in a few days up to $0.095 as the management is working on selling as much inventory as possible while reducing headcount and fixed expenses.
The company announced earlier this week Michael Healy, senior managing director at FTI Consulting, as its new chief restructuring officer. This decision follows Fisker’s recent agreement with an investor, set to expire this Friday.
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Fisker has recently withdrawn all financial and operational guidance for 2024 and appointed both Deutsche Bank and PJT Partners as financial advisors to explore strategic alternatives.
Magna, the manufacturing partner, notified its workforce in Graz (Austria) on Wednesday that will reduce around 500 positions. With the production of the Fisker Ocean model halted for undetermined time, Magna found itself compelled to implement substantial workforce reductions.
In late March, Fisker started considerable discounts on the 2023 inventory with the Extreme variant now starting at $37,499 (down from $61,499), the Ultra variant starting at $34,999 (from $52,999), and the Sport’s one at $24,999 (from $38,999).
Fisker published on Monday its annual report disclosing the delivery of over 6,400 Ocean SUVs since May 2023, when deliveries kicked off in Denmark.
“Our first model, the all-electric Fisker Ocean, has already garnered numerous awards for its design. As of April 16, 2024, the company has delivered over 6,400 Oceans,” the EV maker stated.
In late February, Fisker had reported the production of 10,193 units and the delivery of 4,929 vehicles which results in more than 1,471 vehicles delivered from January 1st until April 16. Fisker delivered its first vehicle to a customer on May 5, 2023, in the Danish capital Copenhagen.
Fisker spent $904.9 million in cash in operating and investing activities during 2023 and saw its cash balance decreasing by 411 million. The company disclosed its cash balance reduced from $736.5 million by the end of 2022 to $325.5 million at December 31, 2023.
The company said it “expects to require additional cash in 2024 for debt service and investment needs” adding that its “ability to generate cash from operating activities will depend on our ability to transition to a dealer model and sell vehicles”.
Fisker concludes by saying that “there is substantial doubt as to our ability to continue as a going concern”.
Fisker received the delisting notice of its stock from the New York stock exchange on March 25 and started trading on the OTC market, where securities trade via a broker-dealer network.
During the weekend, Fisker organized 15 in-person events for owners throughout the United States and Canada, amid Earth Day celebrations. These gatherings occurred in various locations, including San Diego, Manhattan Beach, Nashville, Denver, Atlanta, and Ontario.
Written by Cláudio Afonso | [email protected] | LinkedIn | X
