Fisker announces layoffs and a halt in producing new EV models

Fisker revealed that 2023 and future plans along with preliminary Q4 earnings, and it doesn’t look great for an EV manufacturer. The company plans to cut 15 percent of its workforce — about 200 people — as it moves from a direct-to-consumer to a Dealer Partner model. The company is halting all investment in upcoming models and will only continue if it partners with another automaker.

The company’s revenue in the fourth quarter increased to $200.1 million from $128.3 million in the third quarter. However, its gross margin was negative 35 percent and it lost $1.23 per share. Its only EV on the market, the Ocean SUValso 10,193 units were produced, but 4,929 cars were delivered.

The car manufacturer first made its pivot a Reseller Partner Model in January and claims interest from 250 dealers in North America and Europe, along with 13 signed contracts. “We know the industry is entering a turbulent and unpredictable period,” said Fisker Chairman and CEO Henrik Fisker. “With this understanding and lessons learned from 2023, we have developed a plan to adjust the company as we prepare for another challenging year. We have adjusted our outlook for 2024 to be more conservative than 2023.” The company plans to deliver between 20,000 and 22,000 Ocean models all over the world.

Fisker is currently in talks with a “major automaker” to invest in and co-produce future EVs. This means that as previously announced vehicle production Alaska EV pickup will be stored indefinitely, with large cup holders and a designated cowboy hat location. Fisker originally planned to begin production of the Alaska EV pickup in early 2025.

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