Fisker Lays Off 15 Percent of Staff, Banks Survival on Another OEM
Fisker, which began delivering its Ocean electric SUV last year, finds itself in a pretty bad spot. After reporting a loss of $463 million USD in the fourth quarter of 2023, the young California-based company announced on Thursday it will lay off 15 percent of its staff.
This comes amid a radical transformation of its business model, switching from direct sales to a more conventional approach involving dealers.
- Also: Upcoming Fisker PEAR is an Intriguing Little EV With a Cheap Price
- Also: Fisker Ocean Deliveries in Canada About to Start at Last
“We are aware that the industry has entered a turbulent and unpredictable period. With that understanding and taking the lessons learned from 2023, we have put a plan in place to streamline the company as we prepare for another difficult year,” Fisker wrote in its latest report. “We have adjusted our outlook for 2024 to be much more conservative than in 2023. In 2024, we expect to deliver approximately 20,000-22,000 Oceans worldwide.”
According to Fisker, its current resources are “insufficient to satisfy its requirements over the next 12 months,” and there is no guarantee that it will be successful in trying to find new investments. Therefore, the company says “there is substantial doubt” about its survival. Yikes.
There’s also hope, mind you. Months ago, Fisker started approaching various automakers about a possible alliance. CEO Henrik Fisker has confirmed he’s currently in talks with an undisclosed “large carmaker” and hopes to close a deal soon.
Some U.S. media outlets including Bloomberg and Automotive News are reporting that this unknown manufacturer is the only potential suitor left—and consequently Fisker’s last chance to stay afloat. The help could include “an investment in Fisker, joint development of one or more electric vehicle platforms, and North America manufacturing,” the company explains.
Given the current situation, the launch of Fisker’s second model, the smaller and more affordable PEAR that we’ve previously covered (pictured below), has been delayed. And you can forget about the Alaska pickup or Ronin sports car, too, unless new cash arrives.
As for the Fisker Ocean, which was on display at the Canadian International Auto Show in Toronto a few days ago, deliveries started last fall in B.C. Pricing is $45,999-$79,799, while estimated range is 372-579 km according to Natural Resources Canada.
Fisker is not the only EV startup struggling right now. Rivian, Lucid and VinFast are all off to a slow start as sales and revenue fail to match expectations.