Fisker’s (OTCMKTS:FSRN) headquarters in Manhattan Beach, California will soon shut down, according to Business Insider and three Fisker sources. Last month, the struggling maker of the Ocean SUV informed its Manhattan Beach employees that they would be moved to another Fisker location roughly 25 miles away in La Palma, California.
When contacted by Business Insider, both a Fisker spokesperson and a spokesperson for Continental Development Corporation, Fisker’s headquarters lessor, declined to provide any comments on the situation.
Fisker is on precarious ground. The electric vehicle (EV) maker burned through $904.9 million of cash in 2023 for operating and investing activities, leaving a cash balance of $325.5 million as of Dec. 31. As of April 16, the company’s cash and cash equivalents had declined to just $53.9 million of unrestricted cash and $11.2 million of restricted cash.
Fisker to Shut Down Manhattan Beach Headquarters
In its 2023 Form 10-K, Fisker disclosed a troubling going concern warning:
“Our ability to continue as a going concern is dependent upon our ability to raise additional debt or equity financings, enter into a strategic partnership with an OEM, and generate cash from the sale of vehicles. We need significant additional funding in the near term to execute our business plan and to continue our operations.”
Back in late April, the company informed its employees that it was in talks with four automakers concerning an acquisition. There have been no updates since then. This comes after a failed $400 million investment from Nissan (OTCMKTS:NSANY), who was reportedly interested in Fisker’s unreleased Alaska truck and truck platform.
Fisker desperately needs a supporting hand, as its attempts to sell the Ocean SUV were met with weak sales. In 2023, the company produced 10,193 Oceans but only delivered 4,929 of them. The weak demand was attributed to a plethora of software issues that left users unsatisfied. Earlier this year, Fisker announced price cuts of up to 39% for the Ocean, severally depreciating the value of the vehicle and enraging existing owners.
Fisker’s employees are at risk, too. In an internal email, the company noted that a round of layoffs could occur on June 28 if it is unable to enact a sufficient restructuring plan.
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On the date of publication, Eddie Pan did not hold (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.
