Hi, this is Wayne again with a topic “Why Fisker’s woes are a part of a pattern for EV makers | TechCrunch Minute”.
Electric vehicle company Fisker is hitting pause on producing new cars for six weeks as it works to write its finances, which means that yet another EV company is struggling to stay on the road now Fisker, if you didn’t know, is the brainchild of Danish Auto designer Henrik Fisker after a prior start building luxury electric cars Fisker, as we know it today got started back in 2016 and it went public via aspac. In 2020, then the company launched its Fisker ocean SUV and generated a little Revenue back in 2022, but as the company sold more of its EVS, it also lost more money. In fact, its losses scaled to about $ 760 Million last year now scaling up Auto production is notoriously hard and expensive so that the company lost money while scaling just isn’t a shock, but the amount of money that Fisker lost last year helped send it share price. Tumbling now, in late February, the company said that it would need more money in the next 12 months just to stay in business, and that brings us to the company’s news. This week, a production pause continued work to land, an agreement with an unnamed large automaker that could help the company gets back on its feet and, of course, the hunt for more Capital. Now the company did announce a fund raise that may help, but the terms of that are very expensive and I got to say, the company’s financial troubles may be in part Downstream from issues with its cars, which te reports have included. Issues like a loss of braking key fobs that don’t work and hoods that fly up at high speeds, Fisker May survive, but it’s hardly alone amongst EVS when it comes to struggling to make it.
So that begs the question: what other EV makers are in trouble? The list is long, but I pulled a couple highlights for you: arrival entered bankruptcy last month, despite a prior $ 1, 13 billion valuation canoe had to push its shares together so that it could stay listed on the NASDAQ and Nicola, of course, has lost almost all Of its value and its founder was sentenced to four years in prison late last year. The list goes on lots of EV companies that promised big growth years ago are really having a hard go of it today, but perhaps in total we shouldn’t be surprised. Ev demand is softening, as tchun has reported, though hype surrounding smaller EVS could indicate that demand is going to go up in the next 12 to 18 months. The question is: is that too late, so we’re watching Fister and a number of other former EV startups that are struggling to keep their head above water? The old Venture saying that Hardware is hard, might need an EV variant. For example. Hardware is hard, but rolling Hardware is darn near impossible.
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