Fisker announces layoffs and halts production of new EV models

Fisker announced its future plans along with preliminary earnings for 2023 and Q4, and it doesn’t look good for the EV maker. The company plans to cut 15 percent of its workforce — nearly 200 people — as it transitions from a direct-to-consumer model to a merchant partner model. The company is suspending all investments in upcoming models and will only resume them in partnership with another automaker.

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

The automaker first unveiled its center at a Dealer Partner Model in January and claims to have received interest from 250 dealers in North America and Europe, along with 13 signed agreements. “We are aware that the industry has entered a turbulent and unpredictable period,” Henrik Fisker, chairman and CEO of Fisker, said in a statement. “With this understanding and taking the lessons learned from 2023, we have put in place a plan to streamline the company as we prepare for another challenging year.” We have adjusted our outlook for 2024 to be much more conservative than in 2023.” The company plans to ship between 20,000 and 22,000 Ocean models worldwide.

Fisker is currently in talks with a “major automaker” to invest and co-produce future electric vehicles. This means that previously announced production vehicles, such as the Alaska EV pickup truck with huge cup holders and a designated place for a cowboy hat, will be halted indefinitely. Fisker originally planned to begin production of the Alaska EV pickup truck in early 2025.