Fisker Inc. shares fell more than 30% in extended trading Thursday after the EV maker said it was brokering a deal with an unnamed “large” carmaker as it seeks to remain in business, adding that there would be “substantial doubt” about its ability to do just so without a capital injection. The deal could include an investment in Fisker
FSR,
-0.65%,
a joint development of one or more electric-vehicle platforms and North American manufacturing, Fisker said.
Fisker has been dubbed the “Apple of autos,” having inked deals with manufacturers to produce its EVs and choosing to focus on the design side of the business. The company also said that its current resources are insufficient to meet its needs over the next 12 months, and that it will need to seek additional equity or debt financing. If there’s no financing or if financing terms are “less desirable” than expected, the company “may be forced to decrease its planned level of investment in product development, scale back its operations including further headcount reductions, and reduce production of the Fisker Ocean, which could have an adverse impact on the company’s business and financial prospects,” the EV maker said. “As a result, the company expects to conclude there is substantial doubt about its ability to continue as a going concern when its annual financial statements for the year ended December 31, 2023, are filed with the SEC,” it warned. Fisker said it would cut about 15% of its workforce, and that the reductions are mostly related to the change in its sales strategy fr …
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FSR,
-0.65%,
a joint development of one or more electric-vehicle platforms and North American manufacturing, Fisker said.
Fisker has been dubbed the “Apple of autos,” having inked deals with manufacturers to produce its EVs and choosing to focus on the design side of the business. The company also said that its current resources are insufficient to meet its needs over the next 12 months, and that it will need to seek additional equity or debt financing. If there’s no financing or if financing terms are “less desirable” than expected, the company “may be forced to decrease its planned level of investment in product development, scale back its operations including further headcount reductions, and reduce production of the Fisker Ocean, which could have an adverse impact on the company’s business and financial prospects,” the EV maker said. “As a result, the company expects to conclude there is substantial doubt about its ability to continue as a going concern when its annual financial statements for the year ended December 31, 2023, are filed with the SEC,” it warned. Fisker said it would cut about 15% of its workforce, and that the reductions are mostly related to the change in its sales strategy fr …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]