Fisker Announces Financing Commitment but Warns Over 'Ability to Continue as a Going Concern'

Fisker Inc has announced a financing commitment from an existing investor providing up to $150 million of gross proceeds. The financing is subject to certain conditions, including the filing of Fisker’s 2023 Form 10-K.

However, in a filing with with the US Securities and Exchange Commission (SEC), Fisker warns that there is 'substantial doubt' as to its  ability to continue as a going concern.

It also says it is continuing 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.

The US-based company will pause production for six weeks starting the week of March 18, 2024, to align inventory levels and progress strategic and financing initiatives.

Fisker has produced approximately 1,000 vehicles in 2024 through March 15, and has delivered approximately 1,300 globally in that same timeframe. 

The company is continuing to pursue its shift to a Dealer Partnership model in both North America and Europe

In the SEC filing, Fisker states: 'We expect to require additional cash in 2024 for debt service and investment needs, and our ability to generate cash from operating activities will depend on our ability to transition to a dealer model and sell vehicles. Accordingly, we have concluded there is substantial doubt as to our ability to continue as a going concern'.

It adds: 'Our ability to continue as a going concern is dependent upon our ability to raise additional debt or equity financings, enter into a strategic partnership with an OEM, and generate cash from the sale of vehicles. We need significant additional funding in the near term to execute our business plan and to continue our operations'. 

Fisker has produced approximately 1,000 vehicles in 2024 through March 15, and has delivered approximately 1,300 globally in that same timeframe.