Fisker Other, page #2

Auto blog

Over 40,000 customers reportedly cancel their Fisker Ocean reservation

Fisker's ongoing financial troubles have reportedly scared off a substantial number of the buyers who reserved the electric Ocean crossover with a refundable deposit. The company has lost more than 40,000 reservations that it will need to reimburse, according to a recent report. Citing leaked data and internal metrics, Business Insider wrote that Fisker received between 70 and 80 cancellations per day "in a recent seven-day average." The total number of canceled reservations stands at over 40,000, the report said, which represents a huge chunk of the reported 70,000-plus reservations the firm has collected since it opened the order book in November 2019. Fisker hasn't commented on the report. If this is accurate, the cancellations compound Fisker's problems in several ways. First, the brand's sales forecast has seemingly fallen by over 50%, meaning its revenue forecast has inevitably dropped by the same number. This comes at a time Fisker needs to generate more sales in order to stay afloat; it recently paused production of the Ocean to save money, and it's sitting on a massive inventory of unsold cars. Second, Fisker will need to refund the deposit it collected from every reservation holder who cancels, according to Business Insider and the brand's terms and conditions. It costs $250 to reserve one example of the Ocean and $100 for each additional reservation; both sums are refundable. Fisker keeps the $25 processing fee that's added to every reservation, however. The publication estimates Fisker owes its customer base about $9 million. It adds that "a few thousand" customers have separately canceled an order, though the $5,000 deposit on those isn't fully refundable. It's not far-fetched to assume some of the customers who reportedly canceled a reservation realized they can get a new Ocean right away for much cheaper than initially advertised — Fisker slashed the price of its leftover 2023 models by up to $24,000 in March 2024 to trim its inventory of unsold cars and generate cash. Other customers might have simply lost faith in a company teetering on the brink of bankruptcy. While the Ocean, which is built by Magna in Austria, is the only Fisker model that has reached production, the company has shown three other electric cars that it began taking reservations for and ostensibly planned to sooner or later build. There's a pickup called Alaska, a city car named PEAR, and a four-door convertible known as the Ronin.

Fisker lost track of millions of dollars in customer payments for months

Fisker temporarily lost track of millions of dollars in customer payments as it scaled up deliveries, leading to an internal audit that started in December and took months to complete, TechCrunch has learned. The EV startup was ultimately able to track down a majority of those payments or request new ones from customers whose payment methods had expired. But the disarray, which was described to TechCrunch by three people familiar with the internal payment crisis, took employees and resources away from Fisker’s sales team at a time when the company was attempting to save itself by restructuring its business model. Fisker struggled to keep tabs on these transactions, which included down payments and in some cases, the full price of the vehicles, because of lax internal procedures for keeping track of them, according to the people. In a few cases, it delivered vehicles without collecting any form of payment at all, they said. “Checks were not cashed in a timely manner or just lost altogether,” one of the people told TechCrunch. “We were often scrambling to find checks, credit card receipts and any wired funds a few months after a vehicle was sold.” Alongside the internal audit, outside auditor PwC was asking Fisker for more documentation about its vehicle sales as part of the process of putting together the company's annual financial report, according to two of the people. Fisker was often unable to provide satisfactory documentation, leading to more requests from PwC. “Paperwork being collected wasnÂ’t always being collected in full, or sent to the same places,” another one of the people said. These sources requested anonymity because they were not authorized to talk to the press about internal matters. This internal confusion put the company in a position where it couldnÂ’t accurately say how much revenue it had generated, according to the people, who noted it is one of the reasons Fisker has yet to file its annual financial report for 2023. Tracking down the payments may wind up offering little solace to the startup, which is on the brink of bankruptcy. Fisker has paused production of its only vehicle, the Ocean SUV, after running into trouble meeting internal sales goals and struggling to support customers dealing with a number of quality problems. It has alerted investors that it may not be able to continue operations without a fresh infusion of cash.

Troubled Fisker slashes price of leftover 2023 models

Fisker announced a round of drastic price cuts in a bid to offload its inventory of unsold 2023-model-year cars and hoist itself out of dire financial straits. The only model in its range, an electric crossover called Ocean, will cost up to $24,000 less beginning on March 29, 2024. The company offers three Ocean trim levels called Extreme, Ultra, and Sport, respectively. Updated pricing is as follows. 2023 Ocean Extreme: $37,499 ($24,000 less than before) 2023 Ocean Ultra: $34,999 ($18,000 less than before) 2023 Ocean Sport: $24,999 ($14,000 less than before) Note that these figures exclude destination and available incentives. Fisker notes that the price cuts only apply to 2023 models, which could deter some buyers. While these are new cars, and they feature the 2024 version of the company's operating system, some rival brands are already rolling out their 2025 models. To sweeten the deal, Fisker points out that the leftover 2023s are equipped with up to $7,000 in options including 22-inch wheels and extra-cost paint colors. Time will tell whether these massive discounts ($24,000 is about the price of a new Hyundai Kona) will allow the brand to trim down excess inventory. The Ocean's launch has been dotted with problems, including loss of power while driving, and the National Highway Traffic Safety Administration (NHTSA) opened a preliminary probe into the crossover due to four complaints "alleging unintended vehicle movement." Meanwhile, all is not well at Fisker. The company laid off about 15% of its staff earlier in March 2024 and warned that it risks running out of money. It later paused production of the Ocean, which is built in Austria by contract manufacturer Magna, because it's sitting on a global inventory of around 4,700 unsold cars worth over $200 million. Its shares were suspended from the New York Stock Exchange (NYSE) as talks with a major carmaker, widely rumored to be Nissan, fell through. Fisker has reportedly hired advisers for a potential bankruptcy.

Fisker stock trades halted as talks with Nissan collapse

Fisker's talks with a large automaker for a potential deal have collapsed, it said on Monday amid growing uncertainty for the cash-strapped startup that last week paused electric-vehicle production.  Trading in the shares of the company, which did not name the automaker with which it was in talks, has been halted pending an announcement.  Fisker also said it will not be able to meet a closing condition related to its attempt to raise up to $150 million in funding by selling convertible notes after missing an interest payment.  Separately, Fisker said it would ask investors to vote on a proposal for a reverse stock split at a shareholder meeting on April 24, as it looks to maintain compliance with the Nasdaq's listing norms.  Reuters had reported earlier this month that Nissan was in advanced talks to invest in the company, however, earlier in the day, the Japanese automaker held an event in which it announced a long-term business plan, including its EV strategy, and said it was looking for partners in the United States.  Raising funds has been hard for loss-making electric vehicle startups, which have little in way of revenue as they struggle to ramp up production and deliver to customers, as the companies battle stiff competition and a tough economy.  The EV startup's shares have cratered this year, losing more than 90% of their value, after it flagged going concern risk in February and paused investments in future projects until it secured a partnership with an automaker.  Fisker pivoted to a dealer-partner model earlier this year, after it delivered less than half of the vehicles it made in 2023 due to logistics issues.    Earnings/Financials Fisker Nissan

Fisker stops production, warns it may need to seek bankruptcy

Fisker Inc. is pausing production for the next six weeks as the electric-vehicle maker looks to rein in inventory and avoid possibly having to file for bankruptcy. The company didn’t make a required interest payment of about $8.4 million last week on its unsecured convertible notes due in 2026, according to a regulatory filing Monday. Fisker warned it may not be able to meet obligations to service its debt and “could need to seek protection under applicable bankruptcy laws.” Fisker shares fell as much as 14% shortly after the start of regular trading. The stock had plummeted 90% this year through last weekÂ’s close. Fisker also said Monday that it plans to raise as much as $150 million through a financing deal with the holder of its 2025-dated convertible notes. The Los Angeles-based EV maker didnÂ’t identify the existing investor and said the funding will be organized in four tranches and subject to certain conditions. The disclosures expound on the dire state of Fisker, which warned late last month that there was substantial doubt about its ability to stay in business. The company has said it will cut 15% of its workforce after struggling with production issues, software glitches and short-seller criticism. Fisker said it remains in negotiations with an unidentified large automaker about a potential investment and joint development partnership. Bloomberg reported earlier this month that the company was in talks with JapanÂ’s Nissan Motor Co., citing people familiar with the matter. In its statement, Fisker said it has about 4,700 vehicles in inventory worth more than $200 million. ItÂ’s pausing production in Graz, Austria, starting this week to sell down its supply of already-built EVs.   Earnings/Financials Plants/Manufacturing Fisker

Fisker hires adviser to prepare for possible bankruptcy filing

Electric vehicle startup Fisker has hired restructuring advisers to assist with a possible bankruptcy filing, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. The company has hired financial adviser FTI Consulting and the law firm Davis Polk to work on a potential bankruptcy filing, according to the report. Fisker declined to comment. According to CNN, Fisker's stock price fell more than 40% in after-hours trading after the report was published. Overall, the stock is down more than 80% since the start of 2024. Earlier this month, Fisker flagged going-concern risks, job cuts and a pause in investments into future projects until it secures a partnership with a manufacturer. Nissan was in advanced talks to invest in Fisker in a deal that could provide the Japanese automaker with access to an electric pickup truck, Reuters reported earlier this month, citing two people familiar with the negotiations.   Earnings/Financials Green Fisker

2024 Dodge Charger, the Apple Car and the 5 worst car brands | Autoblog Podcast #822

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by News Editor Joel Stocksdale. They lead off with the 2024 Dodge Charger reveal, followed by various EV startup news including the reported death of the Apple Car; rumors of a tie-up between Fisker and Nissan; and when we'll finally see the Tesla Roadster. That's followed by rumors of sporty EVs from VW group possibly including an Audi TT and the five worst car brands according to Consumer Reports. Road Test Editor Zac Palmer pops in to discuss Formula 1 at Bahrain, and Migliore and Stocksdale wrap up the podcast with the cars they've been driving: the Toyota Prius, Kia EV9 and Infiniti QX50. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #822 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown News 2024 Dodge Charger Reveal Apple Car reportedly dead Fisker and Nissan rumors Tesla Roadster production target Electric VW group sports coupes Five worst car brands Formula 1 at Bahrain What we've been driving 2024 Toyota Prius 2024 Kia EV9 (Road trip to Chicago) 2024 Infiniti QX50 Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related video:

Nissan, Fisker in advanced talks on investment, partnership

Nissan is in advanced talks to invest in electric vehicle maker Fisker in a deal that could provide the Japanese automaker with access to an electric pickup truck while giving the struggling startup a financial lifeline, according to two people familiar with the negotiations. The deal could close this month, said the sources, who asked not to be identified because the talks are ongoing and have not been finalized. Terms being discussed include Nissan investing more than $400 million in Fisker's truck platform and building Fisker's planned Alaska pickup starting in 2026 at one of its U.S. assembly plants, one of the sources said. Nissan would build its own electric pickup on the same platform, the source said. Nissan has U.S. assembly plants in Mississippi and Tennessee. Fisker said on Thursday, when it announced it might not be able to continue as a going concern and would cut 15% of its workforce, that it was in talks with a large automaker for a potential investment and joint development partnership. It did not name the automaker. A Fisker spokesman said the company does not comment on speculation, while Nissan officials were not immediately available to comment. Fisker shares had been down about 45% before the Reuters report but pared those losses and were trading down about 25% with a market capitalization of more than $295 million. The term sheet is ready and the deal is going through due diligence, one of the sources said. Nissan was an EV pioneer with its fully battery powered Leaf hatchback in 2010 but has since struggled in the face of nimbler new entrants. A deal with Fisker would help it move into the growing U.S. electric pickup market. Nissan's talks with Fisker comes in the wake of the former's “rebalanced” relationship with its long-time alliance partner Renault. Last year, Nissan and Renault finalised terms of a restructured alliance after months of negotiations. They aim to have cross-shareholdings of 15% as part of the deal. The more limited alliance removes certain restrictions and has opened the door for Nissan to develop growth plans in areas such as EVs and software independent of Renault, said one of the sources, who is familiar with Nissan's thinking. The Yokohama-headquartered automaker is scouring “many, many opportunities,” the person said.

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.

Fisker's 2023 Ocean vehicles face NHTSA's preliminary probe

The U.S. National Highway Traffic Safety Administration (NHTSA) has opened a preliminary probe into claims of unintended vehicle movement in about 4,000 of Fisker's 2023 Ocean electric sport utility vehicles, the agency said on Friday. The NHTSA's Office of Defects Investigation received four complaints "alleging unintended vehicle movement" related to the 2023 Ocean model. The complaints alleged an inability to shift into the park mode or into the intended gear, which could result in an unintended vehicle movement, the U.S. auto safety agency added. One of the complaints alleged an injury, the NHTSA said. Fisker did not immediately respond to a Reuters request for comment. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.