2023 Fisker Ocean One on 2040-cars

Auto blog

Fisker is laying off 15% of staff and says it needs more cash ahead of a 'difficult year'

Electric vehicle startup Fisker is planning to lay off 15% of its workforce and says it likely does not have enough cash on hand to survive the next 12 months. The company says it is trying to find a way to raise that money as it works through a pivot from direct sales to a dealership model. "[W]e have put a plan in place to streamline the company as we prepare for another difficult year," founder and CEO Henrik Fisker said in a statement. Fisker reported more than 1,300 employees as of the end of September 2023, meaning the cut could affect close to 200 people. The company's share price plunged 35% in after-hours trading. Fisker said Thursday that it finished 2023 with $396 million in cash, though $70 million of that is restricted. The company says it is talking with one of its lenders about making "an additional investment" in the company. It also claims it is "in negotiations with a large automaker for a potential transaction which could include an investment in Fisker, joint development of one or more electric vehicle platforms, and North America manufacturing." A partnership like that will be crucial, as Fisker executives said on a call Thursday that it won't invest any more money in its future products unless it works with another automaker. That means the fates of a pickup truck, compact EV and other models that Fisker has teased are now in question. The company's financial struggles come as it is trying to move to a wholesale model built around partnerships with dealers, a shift that Fisker says has "negatively impacted" its sales so far. It's currently sitting on inventory of thousands of vehicles that are collectively worth more than $500 million. Fisker says it has received interest from around 250 dealerships but has only signed up 13 to date. Fisker has also been dealing with a number of problems with its Ocean SUV, its only model so far, as TechCrunch reported earlier this month. The company has said it resolved some issues with a software update in December and planned to fix many more in a larger 2.0 update earlier this month, but that only started making its way to customer vehicles this week. It is currently being investigated by the National Highway Traffic Safety Administration for reports of sudden brake failure, as well as for a handful of vehicle rollaway incidents. A number of big automakers are pulling back on their aggressive EV targets, and newer players are having trouble as well.

Karma Revero revealed, along with solar roof that powers the car

While we obviously know the general shape of the upcoming Karma Revero - it's based on the old Fisker Karma, after all – the exact details of the Revero are still a bit under wraps. Thankfully, today the Karma Automotive website was updated with some new information about the reborn plug-in hybrid. Say hello to what we know about the Revero. The Fisker's solar roof is still there, but now Karma Automotive says that it, "will create enough energy to power the car." Now there's something we need more details on, but all that Karma is saying for now is that, "No other vehicle sold in the US has ever offered this capability. Our owners consider our solar roof an important element in our brand identity, and we listened." The front and rear Karma badges on each Revero will be are hand-painted. "No other car company has ever done this," Karma says. "Consider it a small but symbolic statement about craftsmanship and individuality." Sure, fine. Lastly, Karma says the infotainment system will be updated and says, "Our new infotainment system represents a departure from the norm. It is simple, intuitive, and beautiful. If you like a 200 page supplement to the owner's manual to describe your infotainment system, look elsewhere." In other words, whew. If this all sounds a bit exclusive, you're right. Jim Taylor, Karma's chief revenue officer, said in a statement that, "Serving a mass market is not, and never will be, our purpose. The Revero is for a discerning group of individuals who desire beautiful, clean vehicles and a memorable ownership experience. We are thrilled to start this journey." Karma said earlier this week that it would sell the Revero through dealerships and company stores in 10 markets in North America. Karma Automotive, which is owned by Wanxiang Group, will officially debut the vehicle at a launch party for the media and owners (that means Fisker Karma owners, since the Revero is not yet available) in Laguna Beach, California on September 8. A pre-order window for the Revero will open up for Fisker owners that same day. While we're there, we'll see if the rumors that the company also plans to bring the Atlantic concept to market are anything more than wishful thinking. Related Gallery Karma Revero News Source: Karma Automotive Green Fisker Green Automakers Electric Hybrid karma karma automotive karma revero revero

Fisker files for Chapter 11 bankruptcy in Delaware

Reuters reports that Fisker filed for Chapter 11 bankruptcy protection on Monday, pointing Henrik Fisker's second independent automotive act into what looks like the same dramatic close as his first act. The Chapter 11 filing, as opposed to Chapter 13, suggests company efforts to stay in business by shedding assets and working out deals with creditors. On the former front, the paperwork filed in Delaware lists estimated asset value at between $500 million to $1 billion against estimated liabilities of between $100 million and $500 million. On the latter front, Adobe, Google, and SAP are listed as among the 20 largest creditors. A company spokesperson said, "Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently." While that is indisputably true, Fisker's much larger problem was launching a woefully unfinished Ocean SUV, full of novelties and beautiful outside, almost entirely undercooked inside. Fisker is not the only EV maker to have done this, nor is Fisker the only EV maker to come apart after having done so. CEO Henrik Fisker blamed software issues, the same bane that's tripped up multi-billion-dollar blue chips like Volkswagen and Volvo and General Motors in the EV space, and continues to do so. Fisker, though, unlike those other companies, had no stable of traditional moneymaking products to keep the company out of the Valley of the Shadow of Death.     It's not clear if Fisker has a way out of that valley, either; prospects from the outside look dim. Fixing the Ocean, addressing the NHTSA investigations, and restarting production would require enormous sums of money, and it's not clear Fisker has the expertise and will to do those things even if it got the money. Rebuilding the incinerated goodwill of the past few months among buyers and interested shoppers — the nadir being trying to sell Oceans to Fisker employees for $20,000 plus taxes and fees — would cost even more in time and funds. At the time of writing, CarFax lists 173 Fisker Oceans for sale nationwide, all low miles, prices ranging from $26,000 to $46,000.