Short of Cash, Fisker Addresses Bankruptcy Rumors

fisker ocean at auto show with people around
Fisker Addresses Bankruptcy RumorsPATRICK T. FALLON - Getty Images
  • Fisker issues statement after the Wall Street Journal reported last week the automaker has hired restructuring advisors ahead of a possible bankruptcy filing.

  • The EV maker started production of the Ocean SUV in late 2022, after a few delays, but missed production targets in 2023.

  • Fisker has indicated in previous regulatory filings that it may not have enough cash through the end of 2024.

Fisker started deliveries of the electric Ocean SUV late last fall, but that doesn't mean the company is close to profitability. The EV maker is not in the black at the moment: Fisker's loss in the fourth quarter of 2023 totaled $463.6 million, while the company reported revenue of $200.1 million in the same quarter.


In all of 2023 Fisker produced 10,193 units of the Ocean while delivering just 4929 of them, falling well short of its initial ambitions of over 20,000 vehicles, while also warning investors that it might not have enough cash to stay afloat through the end of 2024.

Last week the Wall Street Journal reported that Fisker had hired restructuring advisors—a report which itself caused its stock value to plummet 50% late in the week.

The EV maker, understandably, sought to clear things up and has since issued a statement.

"As a matter of company policy, Fisker does not comment on market rumors and speculation. However, Fisker often works with outside advisors to help manage its business and assist in developing and executing strategies. Fisker is focused on raising additional capital and engaging in a strategic partnership with a large automaker. The company is also continuing to pursue its shift to a Dealer Partnership model in both North America and Europe. The leadership team is laser-focused on these efforts," the company said in a statement.

CEO Henrik Fisker had been talking for months about finding a partner in the form of a larger automaker. What's more, it appears the deal itself could be close.

Earlier this month rumors emerged suggesting Fisker was in talks with Nissan for a $400 million investment into Fisker's Alaska pickup truck platform.

The EV maker has not addressed Nissan investment rumors directly, only issuing a general statement that it was in talks with another automaker. But its cashflow issues appear to be deeper than merely $400 million, especially devoted to a truck platform.

"Fisker is in negotiations with a large automaker for a potential transaction which could include an investment in Fisker, joint development of one or more electric vehicle platforms, and North America manufacturing," the EV maker said two weeks prior, in announcing its 2023 results.

But even at the time Ocean production began in November 2022, it was evident the most pressing issue facing the company in 2023 and 2024 would likely be a shortage of cash for keeping operations going.

As for the Fisker Alaska pickup, the EV maker could eventually benefit from entering a compact electric pickup segment that has remained overlooked by other EV makers.

But the planned model does not appear to be close enough to production to be of immediate help to Fisker in an EV market that saw demand slow down in 2023, especially when it comes to electric pickups.

The Alaska is currently expected to enter production in early 2025, with a starting price of around $45,000.

The Fisker Pear, meanwhile, is currently scheduled to enter production in the summer of 2025 with a starting price of just under $30,000.

Launching the assembly of these two new models will require significant expenditures. It remains to be seen whether Fisker can find a partner automaker in 2024 that would address at least some of its financial hurdles. It's clear that a significant turnaround may be needed soon for Fisker to continue operations past 2024.