Survival Mode for This Manufacturer

Fisker has just published its latest financial results. Unfortunately, the manufacturer is in a critical situation.

It is difficult to see a manufacturer like Fisker in such a perilous situation. Its models are attractive, smart, and have a very good image, but there is a but. Fisker urgently needs to prioritize improving vehicle deliveries, enhancing service and support, and establishing strategic partnerships. It is no longer about setting profit records but rather about solving critical issues.

A sentence in this report summarizes the manufacturer’s situation: “Substantial doubt regarding Fisker’s ability to continue its operations.” Fisker claims to be negotiating with a major automaker for an investment, perhaps Foxconn, which has just been released from its commitments to Apple. Furthermore, it might also conclude an agreement for joint development of electric vehicle platforms.

Nevertheless, encouraging sales

In terms of sales, production of the Fisker Ocean reached 4,789 units in the fourth quarter of 2023, with 3,818 vehicles delivered to customers. During 2023, 10,193 Fisker Oceans were produced and 4,929 vehicles delivered. These figures are steadily increasing. Fisker’s projected revenue for the fourth quarter of 2023 is $200.1 million, an impressive increase of $128.3 million compared to the third quarter of 2023, which totaled $71.8 million. However, the result is below expectations because the company defers its revenues. As proof, Fisker’s gross margin in Q4 2023 was -35%.

Henrik Fisker does not aim to hide the difficulties his brand is currently facing. He essentially stated that his current resources are insufficient to meet his needs over the next 12 months. The future is not entirely bleak, but without financial support, it seems quite compromised.

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