Shares in California EV maker Fisker hit an all-time low following the company's fourth quarter earnings call on Thursday, as the start-up revealed that its planned product launches may be scrapped unless a collaboration agreement with an unnamed OEM partner can be struck.
CEO Henrik Fisker confirmed long-circulated reports that the automaker in pursuing a strategic collaboration with another OEM, which will provide the company with a much-needed cash injection.
"On the strategic front, Fisker 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," Fisker says.
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The CEO also reveals that the company will not be able to push on with its planned upcoming EVs, the Pear SUV and Alaska pickup, unless this OEM collaboration goes ahead.
"We will only continue to invest in these programs if we complete a strategic collaboration or investment with an OEM," the CEO says.
Fisker has previously called the Pear “the most exciting vehicle of the century under $30,000”.
But the company appears to be losing confidence in its ability to make the Pear profitably at a time when it needs to focus on its bottom line.
"As we see in the market, we see that the biggest opportunity for growth, and I think profitability and getting speed to market is with the Alaska," CEO Fisker says.
Fisker reported a net loss for 2023 of $762mn, with the most recent quarter showing the biggest net loss of any throughout the year. The company's gross margin for 2023 was -35pc, although management says that non-recurring charges dented this figure considerably.
Fisker says it currently anticipates delivering approximately 20,000 to 22,000 models of its existing EV, the Ocean, globally in 2024.
Ciaran has written about finance, politics and culture. He is passionate about e-mobility and what it means for our way of life.
Ciaran has a Masters in Ancient Philosophy from Oxford University.
