EV Startup Lost $463M Last Quarter, Mulls New Investor Funds

Electric vehicle manufacturer Fisker issued a dire warning Thursday that it may not survive the next 12 months without raising additional cash. The startup lost over $460 million last quarter and said its very ability to continue operating faced “substantial doubt.” Fisker is now considering new investments and laying off 15% of staff.

Seeks New Investor Funds, Cuts Jobs to Slash Costs

Fisker said it remains in talks with an existing investor about injecting urgently needed new capital. But with just $92 million cash on hand entering 2023, the company must dramatically cut costs. That will include workforce reductions totaling around 160 employees to save on excessive overhead.

Business Model Relies Completely on External Manufacturer

More than business model decisions are impacting Fisker’s predicament. The Ocean SUV is entirely manufactured in Austria by outside supplier Magna, with Fisker owning no production capacity. Supply chain disruptions have delayed Ocean deliveries, strangling short-term revenue.

Fisker’s founder already saw his original electric car startup, Fisker Automotive, go bankrupt a decade ago. Now his new venture risks the same fate unless it can secure a financial lifeline to continue developing models like the Ocean EV SUV.

With markets jittery on startups, Fisker faces hardcore survival pressure and questions on the viability of its outsourced production strategy. Slashed projections now trigger concrete doubts over its capacity to even operate through 2024.