Fisker halts work on new EV models until it finds more money

Fisker has announced its future plans alongside preliminary 2023 and Q4 earnings, and it’s not looking great for the EV manufacturer. The company plans to lay off 15 percent of its workforce — nearly 200 people — as it shifts from a direct-to-consumer to a Dealer Partner model. The company is halting all investments in upcoming models and will resume only if in partnership with another automaker.

The company’s fourth-quarter revenue increased to $200.1 million from $128.3 million in Q3. However, its gross margin was negative 35 percent, and it lost $1.23 per share. Its sole EV on the market, the Ocean SUV, also had 10,193 units produced but 4,929 vehicles delivered.

The automaker first introduced its pivot to a Dealer Partner Model in January and claims it has received interest from 250 dealers across North America and Europe, along with 13 signed agreements. “We are aware that the industry has entered a turbulent, and unpredictable period,” Henrik Fisker, chairman and CEO of Fisker, said in a statement. “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. We have adjusted our outlook for 2024 to be much more conservative than in 2023.” The company plans to deliver between 20,000 and 22,000 Ocean models across the world. 

Fisker is currently negotiating with “a large automaker” for an investment and joint production of future EVs. This means that previously announced vehicle production, such as the Alaska EV pickup with humungous cup holders and a designated cowboy hat space, will be on hold indefinitely. Fisker originally planned to start production on the Alaska EV pickup in early 2025. 

This article originally appeared on Engadget at https://www.engadget.com/fisker-halts-work-on-new-ev-models-until-it-finds-more-money-140050091.html?src=rss