Fisker, the electric vehicle company founded by auto designer Henrik Fisker, has revealed in its fourth quarter earnings announcement that it may not have enough funds to survive another year. The company's statement expressed "substantial doubt about Fisker's ability to continue as a going concern." In order to sustain operations over the next 12 months, Fisker will have to secure additional investments from investors.

Currently, Fisker's stock is trading at 75 cents per share, but it dropped to just over 40 cents on Friday morning. To address its financial concerns, the company is engaged in discussions with an existing investor who may infuse more capital. Additionally, Fisker intends to reduce costs by laying off 15% of its workforce.

The company experienced significant financial losses in the fourth quarter of 2023, recording a loss of $463.6 million while generating $200 million in revenue. This loss included a $325 million adjustment associated with convertible notes. Fisker's operating loss amounted to $103.5 million during this period.

Fisker's unique business model involves fully outsourcing the manufacturing of its sole model, the Ocean electric SUV. The vehicles are manufactured in Austria by Magna, a company known for producing vehicles for prestigious brands like Mercedes-Benz, BMW, and Jaguar. However, Fisker encountered obstacles in 2023 that caused delays in delivering the Ocean SUV as originally planned.

Last year, Magna produced over 10,193 Fisker SUVs, but less than half of them were delivered to customers within the calendar year. Fisker aims to improve its delivery rate in 2024 and expects to deliver approximately 20,000 vehicles this year.

Fisker did not file its full annual report, known as form 10-K for the year 2023, explaining that it required more time to finalize the report. The company assures stakeholders that the report will be filed by March 15. Furthermore, Fisker acknowledged uncovering a "material weakness" in revenue and related balance sheet accounts, which will be disclosed in the upcoming 10-K report.

Previously, Fisker's original business plan involved direct sales to customers, mirroring Tesla's approach. However, the company pivoted its strategy this year and started partnering with franchised dealers. Fisker recently announced that it has signed up 12 dealers in the United States and Europe.

This is not the first automotive venture for Henrik Fisker. His initial car company, Fisker Automotive, produced the Fisker Karma, a plug-in hybrid luxury car. Unfortunately, the company went bankrupt in 2013 after much of its inventory was destroyed by Hurricane Sandy.

As Fisker grapples with financial challenges and strives to secure additional capital, its operational future remains uncertain.