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Fisker scales back production to divert cash for working capital

Electric-vehicle maker Fisker said on Friday it will scale down production this month and produce fewer cars this year than its previous guidance, to prioritize cash for working capital needs. Shares of the EV maker, which has been struggling with a cash crunch, rose 7% in premarket. "Fisker has made a strategic decision to reduce December production to prioritize liquidity to unlock over $300 million of working capital," the company said. Fisker cut its production target for the year — at least a second time — to just over 10,000 units, compared with its earlier forecast of 13,000 to 17,000. The company said it delivered 123 vehicles on Thursday, adding it plans to accelerates sale and deliveries despite the tough market conditions for EVs. Some EV firms are facing dwindling cash reserves, pressured by high costs related to production ramp-ups and inflation and price cuts by rivals such Tesla. In its most recent financial results, which were filed after a delay due to the departure of its former accounting chief, Fisker reported a loss of $91 million and revenue of $71.8 million for the third quarter, both missing expectations. Green Plants/Manufacturing Fisker Electric

Karma Revero will be unveiled, with pricing, this summer

The Karma Revero, the high-end extended-range plug-in vehicle that will be the successor to the Fisker Karma, will have a prototype unveiled and will announce its pricing this summer, the Los Angeles Times says. Karma may produce as many as 3,000 vehicles a year out of its Southern California factory. The automaker, now owned by China-based Wanxiang Group, also may pursue the direct-to-consumer distribution model used by electric vehicle maker Tesla Motors, the Times says, citing Karma chief marketing officer Jim Taylor. The former Fisker Automotive's assets were acquired out of bankruptcy by Wanxiang Group in 2014 after Fisker, with its vehicles' 33-mile all-electric range, stopped making cars in 2012 and went under. The four-door Karma Revero, which is said to deliver more than 400 horsepower, will look similar to the Fisker Karma and will also likely be priced at more than $100,000. Karma is making the vehicles out of a 550,000-square-foot factory in Moreno Valley, California, about 60 miles east of Los Angeles. The production line at the Valmet factory in Finland where the first batch of Karmas was made was broken down into parts and shipped to California for the new plant, while about 120 finished Karmas that were never sold were eventually used for test vehicles. Karma officially changed its name from Fisker last year. Fisker, which at one time was going to build a second model called the Atlantic, was founded in 2007 by famed designer Henrik Fisker, who now helps run a coach-building company. Karma Automotive is also planning to build sales and engineering offices in Troy, Michigan, near Detroit, as the company is receiving some funding from the state of Michigan. About 150 workers will be housed at the $3.6 million facility. Related Video:

Fisker tells its staff that four companies are interested in buying it

Fisker is nearing bankruptcy, but there might be a light at the end of the long, dark tunnel it's been traveling in for the past few months. Four companies have shown an interest in buying the troubled brand, according to comments made during a meeting by founder Henrik Fisker. "We still have some time to get other offers on Fisker. We do have four car companies that have signed NDAs," the executive said during what's described as an "all-hands meeting" for staff members held earlier this month. "However, they obviously need time to get some diligence." Business Insider, who reported the comments, adds that Fisker didn't reveal the identity of the four companies. He specified that they're car companies, but that's a vague term that could refer to anything from a small startup with shady backing to a major group that's been around for over a century. Similarly, there's no word on how long it will take for these companies to decide whether to make an offer on Fisker. In spite of its setbacks, including damning reviews of the only model it has managed to bring to production, a National Highway Traffic Safety Administration (NHTSA) probe, and reports of thousands of canceled orders, Fisker seemingly remains fairly attractive to investors. Nissan briefly considered buying the carmaker earlier in 2024 but the talks ended without a deal, according to an earlier report. Deutsche Bank is helping Fisker look for takeover candidates, and the company has already turned down one offer that wasn't "sufficient," its CEO said. Fisker hasn't commented on the report. Meanwhile, industry trade journal Automotive News (subscription only) reports Henrik Fisker has listed his personal home — an 11,800-square-foot mansion in Hollywood Hills — for sale at $35 million, though you can also rent it for $125,000 per month. The publication notes $35 million is more than Fisker's market cap, which stood at $33.7 million when it was delisted from the New York Stock Exchange.