Electric vehicle maker Fisker revealed on Thursday a 15% reduction in its workforce, citing concerns that its current resources may not be enough to cover the next 12 months. Following the announcement, Fisker’s stock price tumbled 37% after trading hours.
In a press release, Fisker stated the need to secure additional equity or debt financing to sustain its operations. Without such financing, the company indicated that it might have to scale back operations, including further staff reductions and decreased production of its Ocean electric SUV.
See also: Fisker’s Q4 Revenue Misses Estimates, Warns of Going Concern Status
Fisker emphasized the uncertainty regarding its financial future, stating, “If the financing is not available, or if the terms of financing are less desirable than Fisker expects, the company may be forced to decrease its planned level of investment in product development, scale back its operations including further headcount reductions, and reduce the production of Fisker Ocean, which could have an adverse impact on the company’s business and financial prospects.”
The company also disclosed that it was unable to file its 2023 Form 10-K within the prescribed submission period due to the need for additional time to finalize financial statements and complete internal control assessments. Fisker expects to submit its 2023 Form 10-K by March 15, 2024.
See also: Fisker Faces NYSE Delisting Threat Amid Federal Probes and Electric SUV Launch Challenges
Regarding its financial performance, Fisker reported preliminary fourth-quarter revenue of $200.1 million, a significant increase from Q3 2023. However, the company noted a concerning gross margin of -35% for Q4 2023. Production of the Fisker Ocean reached 4,789 units in Q4 2023, with 3,818 units delivered to customers during the quarter. Throughout 2023, a total of 10,193 Fisker Oceans were produced, with 4,929 units delivered to consumers.
