Fisker (NYSE:FSR) stock is falling hard on Friday after the electric vehicle (EV) company provided investors with an update on its latest earnings results.
Included in that release is a warning for investors in FSR stock. The company includes a going concern warning in that report as it says it doesn’t have enough funds to continue operations for the rest of the year.
Fisker is already working to address these issues. That includes negotiations with a current noteholder for further investments in Fisker. The company has also announced that it is laying off 15% of its employees to reduce costs.
Fisker Chairman and CEO Henrik Fisker said the following about the company’s performance in 2023:
“There were a number of unanticipated challenges, including rising interest rates, finding enough skilled labor, and identifying appropriate real estate locations to make the DTC model function effectively. As a result, we pivoted to a new Dealer Partner model at the end of 2023 and announced this strategic shift in early January 2024.”
What’s Next for FSR Stock
Fisker notes that it is currently in negotiations with dealers to carry its EVs. Since announcing its Dealer Partner model, it has seen more than 250 indications of interest. The company says its future is highly dependent on the success of its Dealer Partner model.
Fisker also updated its outlook for 2024 to be more conservative than 2023. This has the EV company expecting delivery of 20,000 to 22,000 Ocean EVs.
FSR stock is down 38% as of Friday morning and was down 55.3% year-to-date as of Thursday’s close.
There are more stock market stories worth reading about down below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
