Key Takeaways
- Fisker withdraws 2024 guidance and admits that things look dire.
- Changes in board leadership add to the struggle, further eroding confidence in Fisker’s future.
- A federal investigation, production pauses, and canceled orders compound the situation.
The outlook for Fisker continues to be bleak as the company withdraws its financial and operational guidance for 2024. The news was made official in a filing with the SEC late Wednesday in which Fisker stated that it’s still trying to find a way to survive but that no clear path forward exists. This comes after Fisker Ocean models in stock were heavily discounted last month in an effort to boost turnover.
Fisker stated in the filing that “alternatives involve significant uncertainties, potential significant delays, costs and other risks, and there can be no assurance that any of these alternatives will be available on acceptable terms, or at all, in the current market environment or in the foreseeable future.”
Changes to the Board
In the same filing, the company also announced the resignation of William R. McDermott from both its board of directors and the audit committee of the board at the request of his employer. Fisker has already appointed his replacement, but changes to the board at a difficult time don’t inspire confidence.
Related
Over 40,000 Fisker Reservations Canceled
The hits keep coming as the EV startup struggles to survive.
Electric vehicle sales growth has slowed in the US, leading to strategic changes from multiple automakers. Ford just announced that it is delaying new EVs to focus on increasing its hybrid offerings, following a similar move from luxury brand Lincoln.
Challenging Market Conditions
Pricing has been a big part of the EV adoption issue, and several automakers have introduced significant discounts in an effort to boost turnover. The problem at Fisker, however, goes much deeper. Last month, Fisker announced a pause in production for six weeks as it raised $150 million in a bid to avoid bankruptcy.
This was followed by news that a potential deal with another automaker had fallen through and then the aforementioned price cuts. Even more bad news came as NHTSA opened an investigation into complaints concerning faulty Ocean doors that wouldn’t open. The withdrawal of its financial guidance on top of these issues casts the future of the brand in serious doubt.
