A report last week hinted at bankruptcy. The latest disclosures from the company this week signal further trouble ahead.
Fisker has paused production of all vehicles for six weeks starting today as it seeks to sell off existing inventory and raise the cash it desperately needs to continue operations. It estimates it has 4,700 unsold vehicles worth roughly $200 million sitting unsold, as of March 15. In January, the company registered 640 vehicles in the U.S. and has sold 1,300 in total, globally, so far this year.indicating that the company missed a $8.
Fisker’s updated “going concern” warning indicates how dire the company’s situation is. Per the disclosure: “We need significant additional funding in the near term to execute our business plan and to continue our operations … we may not be able to satisfy our debt service obligations and could need to seek protection under bankruptcy laws.”
A sliver of good news came as Fisker also announced it had come to an agreement with an existing investor, as yet unnamed, to provide it with $150 million in funding in four installments.Early this month, the company issued a "going concern" warning , noting that there was substantial doubt that the company could continue operations in its current state . And yesterday,The companies, FTU Consulting and Davis Polk, are financial advisers and a law firm, respectively. Fisker did not provide a comment toWhile the hiring of the companies isn't a guarantee that the young automaker will indeed end up filing for bankruptcy protection, the optics are not great. Fisker shares have tanked after the report, currently at $0.
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