Fisker is facing the possibility of bankruptcy, as indicated in its recent filing with the U.S. Securities and Exchange Commission (SEC). According to the filing, Fisker could potentially file for bankruptcy within 30 days if it fails to secure financing to meet its debt obligations. The company expressed doubts about its ability to continue as a going concern if it does not receive relief from its debt holders and additional liquidity. Additionally, Fisker reported a significant decline in its cash balance, dropping to $325.5 million in 2023 from $736.5 million the previous year.
The company also announced a reduction in its workforce to 1,135 employees, representing a 15 percent decrease in staff. In response to its financial challenges, Fisker stated that it is exploring various strategic options, including in- and out-of-court restructuring, capital market transactions, and other possibilities. It is evident that Fisker is confronting substantial financial difficulties and is actively seeking solutions to address its financial obligations and turnaround its business.