Fisker Inc. shares fell more than 20% in extended trading Thursday after the EV maker said it was brokering a deal with an unnamed “large” carmaker as it seeks to remain in business, adding that there would be “substantial doubt” about its ability to do so without a capital injection.
The deal could include an investment in Fisker, a joint development of one or more electric-vehicle platforms and North American manufacturing, Fisker said.
Fisker
FSR,
added that its current resources are insufficient to meet its needs over the next 12 months and the company will need to seek additional equity or debt financing.
“If the financing is not available, or if the terms of financing are less desirable than Fisker expects, the company may be forced to decrease its planned level of investment in product development, scale back its operations including further headcount reductions, and reduce production of the Fisker Ocean, which could have an adverse impact on the company’s business and financial prospects,” the EV maker said.
“As a result, the company expects to conclude there is substantial doubt about its ability to continue as a going concern when its annual financial statements for the year ended December 31, 2023, are filed with the SEC,” it warned.
Fisker reported fourth-quarter sales of $200 million, well bellow FactSet consensus for sales of $327.7 million in the quarter.
Fisker shares have lost 90% in the past 12 months, contrasting with gains of around 28% for the S&P 500 index
SPX.
