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As Fisker fails, EV startups need to learn from China

Livemint

Livemint · 1y ago

As Fisker fails, EV startups need to learn from China

Electric vehicle startup, Fisker, may face failure as it runs low on funds and struggles with its asset-light model of outsourcing production. The company aimed to save billions of dollars by outsourcing manufacturing to third parties, but this approach may not work in the car industry where profitability relies on factories operating at capacity. Chinese EV startups have shown a faster time to market, reducing costs and draining less cash. Car manufacturers need to cut costs and lighten capital requirements rather than relying on others.

Related News

EV startup Fisker raises $150 million from existing investor

Economic Times

Economic Times · 1y ago

EV startup Fisker raises $150 million from existing investor

Electric vehicle (EV) startup Fisker Inc. has secured $150 million in funding from an existing investor. The funds will be used to boost the production and delivery of their flagship Ocean sports utility vehicle. Fisker aims to increase deliveries to 300 units per day in the near future, contributing to the growth of the EV market.

These startups wanted to be the next Tesla. Will they survive the EV slowdown?

Livemint

Livemint · 1y ago

These startups wanted to be the next Tesla. Will they survive the EV slowdown?

Several electric vehicle (EV) startups, including Rivian Automotive, Lucid Group, Fisker, Polestar Automotive, and VinFast Auto, are facing financial challenges as they struggle to compete in the EV market. These companies have been burning through cash reserves, losing money on every vehicle sold, and experiencing weaker-than-expected sales. While they initially garnered attention and investor support, their future viability is now uncertain. Factors such as high sticker prices, limited charging infrastructure, and consumer concerns about EV reliability have contributed to a slowdown in demand. These companies are now focused on conserving cash and stabilizing operations to survive.

Exclusive: Fisker spent months trying to track down millions of dollars in customer payments

TechCrunch · 1y ago

Exclusive: Fisker spent months trying to track down millions of dollars in customer payments

EV startup Fisker experienced a payment crisis as it struggled to keep track of customer payments, according to sources. The company reportedly lost track of millions of dollars in customer payments due to lax internal procedures for managing them. Fisker eventually traced most of the payments or requested new ones from customers. The payment disarray caused distractions for the sales team at a critical time when the company was restructuring. Furthermore, the company's poor internal procedures also affected other areas such as making required payments to state DMVs and handling paperwork for registrations and titles.

Fisker trading suspended by NYSE

TechCrunch · 1y ago

Fisker trading suspended by NYSE

The New York Stock Exchange (NYSE) has suspended trading of electric vehicle (EV) startup Fisker and is taking steps to remove the company from its stock exchange. The decision comes after Fisker's stock price fell below $1 for 30 consecutive days, violating NYSE rules. Fisker can appeal the decision, but it is expected to be moved to an over-the-counter market. Additionally, Fisker lost a potential deal with a large automaker, jeopardizing its recent attempt at securing emergency funding. The company has been facing various challenges, including customer complaints, lawsuits, and financial difficulties.

Fisker warns it’s running out of cash and may not make it through 2024

The Verge

The Verge · 1y ago

Fisker warns it’s running out of cash and may not make it through 2024

Fisker, the California-based electric vehicle (EV) company, is facing financial troubles and uncertainty about its future. The company is struggling with production challenges, decreasing demand, and high interest rates. Fisker has recently laid off 15% of its employees and is seeking additional investment. The company has switched from a direct-sale model to franchised dealerships in an effort to cut costs. Despite these challenges, Fisker is hopeful for growth and is in talks with a large automaker for a potential investment and partnership. Quality issues with their EVs have also been reported.

Fisker bankruptcy plan approved after deal on vehicle tech support

Economic Times

Economic Times · 10m ago

Fisker bankruptcy plan approved after deal on vehicle tech support

- Electric vehicle startup Fisker has received court approval of its bankruptcy liquidation plan. - Fisker had to sell its remaining inventory of about 3,000 Ocean SUVs to repay creditors. - Fisker filed for bankruptcy in June after failed partnership negotiations with Nissan for production. - Fisker chose to liquidate operations, selling off its vehicle fleet and transferring its intellectual property to creditors. - A dispute regarding the transfer of data and support services for the vehicle fleet was resolved, with American Lease agreeing to pay an additional $2.5 million for future tech support services. - The EV market has seen other companies filing for bankruptcy due to weakening demand, fundraising hurdles, and operational challenges.

EV startup Fisker slides as cash dwindles with 'difficult year' ahead

Reuters · 1y ago

EV startup Fisker slides as cash dwindles with 'difficult year' ahead

Shares of electric vehicle startup Fisker fell almost 40% after the company announced going-concern risks and plans to cut its workforce by 15%. Fisker also stated that it would pause investments in future projects until it secures a partnership with a manufacturer. The company has received a notice from the New York Stock Exchange indicating non-compliance with a listing rule. Fisker intends to produce between 20,000 and 22,000 Ocean vehicles in 2024, below previous estimates. The company's cash reserves have also declined, and it stated the need for additional funds in the next 12 months.

Fisker pauses production with just $121 million in the bank

TechCrunch · 1y ago

Fisker pauses production with just $121 million in the bank

EV startup Fisker is halting production of its electric Ocean SUV for six weeks due to a shortage of funds. The company's regulatory filing revealed it has $121 million in cash, with $32 million inaccessible. Fisker stated that it has an accounts payable balance of $182 million, raising doubts about its ability to continue operations without raising more capital. The startup faced challenges with software issues and customer service, leading to an investigation by the National Highway Traffic Safety Administration. Fisker is attempting to secure a partnership with an automaker, possibly Nissan, and is trying to raise $150 million through convertible notes.

China's oil majors face uphill climb to adapt to EV future

Reuters · 1y ago

China's oil majors face uphill climb to adapt to EV future

China's state-run oil giants, Sinopec and PetroChina, are adapting to China's shift towards electric vehicles (EVs) by building charging stations. As EV sales are expected to reach 40% of total car sales this year in China, the demand for gasoline is predicted to peak by 2025. However, the public EV charging sector in China faces challenges such as low utilization, market fragmentation, and overcapacity. Despite this, global energy companies like Shell and TotalEnergies are also investing in EV charging infrastructure in China, drawing lessons from early adopter markets like Norway.

China’s Rare Earth Curbs Hit Key Automakers, Threaten India’s EV Push

OutlookIndia

OutlookIndia · 2m ago

China’s Rare Earth Curbs Hit Key Automakers, Threaten India’s EV Push

India's electric vehicle (EV) sector faces significant challenges due to China's restrictions on rare earth exports, essential for EV production. As a major supplier, China's move disrupts supply chains and impacts production costs. Indian automakers like Suzuki and TVS Motor are already experiencing production halts. This trade restriction is part of broader geopolitical tensions, particularly between China and the US, emphasizing the need for India to seek alternative supply sources or strategies.

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