The electric vehicle (EV) company Fisker announced its plan to sell all nearly 5,000 unsold vehicles manufactured in 2023 by the end of the first quarter. The company also revealed that its newly introduced dealer-partner model has gained significant interest, with more than 100 dealers in the United States, Canada, and Europe expressing their intention to become Fisker dealers.
Despite producing over 10,000 vehicles in 2023, Fisker faced challenges in delivering only about 4,700 units of its Ocean sport utility vehicles. This discrepancy was attributed to logistics constraints affecting the EV startup’s distribution capabilities.
To address the surplus inventory, Fisker aims to sell the vehicles manufactured in the previous year, expecting this move to generate substantial cash flow in the first quarter. The influx of cash is anticipated to provide additional working capital for the company.
In a strategic move to expand its sales and delivery network, Fisker recently announced its decision to incorporate dealerships alongside its existing direct-to-customer distribution model. The company has received interest from over 100 potential dealers, and it plans to host them at its headquarters in Manhattan Beach during the week of January 29. Additionally, Fisker executives are set to attend the National Automobile Dealers Association (NADA) show in early February to engage with prospective dealers.
Fisker’s shares experienced a 17% surge on Monday following the signing of new agreements with an investor. These agreements grant Fisker the use of intellectual property in pursuing strategic collaborations, contingent upon forming new manufacturing partnerships. Furthermore, the company reported a reduction in its overall debt level by $185.5 million to $324.5 million, achieved through a series of conversions by a senior convertible notes holder. These financial developments indicate positive momentum for Fisker as it navigates the competitive landscape of the electric vehicle market.
