Hot stocks to watch this afternoon: GPRO, HAS, MU >>> READ MORE

Fisker Lays Off Most Workers, Gets Sued For Lack of Notice

It is facing a payment on its government loans


fisker karma 630Electric hybrid car-maker Fisker Automotive appears to be running out of time.

The maker of high-end plug-in cars announced on Friday  that it has laid-off the majority of its workforce at its California offices immediately. Fisker said that it expected to keep just a quarter of its workers, the Detroit Free Press noted.

Tesla to Repay $465M U.S. Loans Five Years Ahead of Schedule
Tesla to Repay $465M U.S. Loans Five Years Ahead of Schedule

After the cuts, the company will have about 50 employees. Earlier, it hired a bankruptcy law firm to help it protect its core assets and look for potential investors.

Making matters worse, just hours after it announced the payroll reductions, Fisker was sued by former employees for failing to provide California law-required advance warning of the layoffs, Automotive News said.

Fisker recently stopped manufacturing its Karma vehicle, which was priced at $103,000. Last year, a Karma broke down while being tested by Consumer Reports.

This month, the company faces an installment payment on the $193 million in federal loans it received to develop its luxury vehicles. Last month, Fisker’s founder and executive chairman Henrik Fisker left the company after clashing with its board of directors.

Rival plug-in vehicle maker Tesla Motors (NASDAQ:TSLA) recently said it expects to post its first-ever profit due to better-than-expected sales of its Model S electric car.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC