Electrive
Fisker Cuts Production Guidance Again, Amidst Financial Struggles
Electric SUV Maker Faces Production Challenges, Bankruptcy Rumors
New York, NY - December 1, 2023 - Electric vehicle startup Fisker has once again cut its annual production guidance, casting doubt on its ability to meet financial targets and raising concerns about its long-term viability.
Repeated Production Targets Miss
The start-up has repeatedly cut production targets for its flagship Ocean SUV. In 2023, Fisker produced only 10,142 units of the electric SUV, falling short of its initial target by a significant margin. The company managed to deliver around 4,700 vehicles during the year.
Low Sales Projections
For 2024, Fisker is targeting combined sales directly to consumers and dealers of approximately 20,000 to 22,000 units. However, analysts are skeptical that the company can achieve these targets given its track record of production delays and financial struggles.
Mismanagement Allegations
The company has also faced allegations of mismanagement by its founders, Henrik Fisker and Geeta Gupta-Fisker. Former employees have accused the couple of financial irregularities and lack of transparency, which has further eroded investor confidence.
Bankruptcy Rumors
Amidst the production challenges and financial woes, rumors of Fisker's impending bankruptcy have been circulating. In June 2024, the company filed for bankruptcy protection, citing its inability to secure additional funding.
Industry Impact
Fisker's financial struggles and production challenges have raised concerns about the viability of electric vehicle startups. Investors are becoming wary of investing in companies that are unable to meet their production targets and manage their finances effectively.
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