The Internal Struggle
Electric vehicle startup Fisker Inc. faced an alarming financial debacle as it lost significant amounts of money in customer payments due to lax internal procedures. This misstep prompted an internal audit, distracting the sales team during a crucial restructuring phase.
Checks went uncashed, lost, or misplaced, leading to frantic searches for payments months after vehicle sales. This disarray played a role in delaying Fisker’s annual financial report for 2023, hampering revenue assessments.
Price Cuts Amidst the Chaos
In a bid to alleviate its mounting challenges, Fisker introduced substantial price reductions on various trims of its 2023 Ocean SUV models. The Extreme, Ultra, and Sport trims now sport significantly lower prices, a move that followed the company’s delisting from the New York Stock Exchange due to plummeting stock values.
Additionally, talks regarding potential investments with a major automaker recently fell through, further clouding Fisker’s financial horizon. The company’s previous worries over revenue generation now loom larger.
Financial Woes
At the end of 2022, Fisker held a cash balance of $736.5 million, plummeting to $325.5 million by December 2023. The latest financial report revealed a staggering net loss of $463.6 million along with revenue amounting to $200.1 million for the fourth quarter.
Despite producing over 10,200 Ocean SUVs in 2023, Fisker managed to deliver only 4,929 vehicles, leaving the company with approximately 4,700 unsold units. This led to a temporary production halt as Fisker sought to address inventory and financial challenges.
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