Posted on 03/21/2024 6:28:12 PM PDT by george76
The startup electric car company Fisker said this week that it is halting the production of its vehicles to raise $150 million in emergency funds as it grapples with a cash crunch spurred by a low demand for electric vehicles.
The California-based company, which says its mission is to “create the world’s most emotional and sustainable electric vehicles,” has barely produced over a thousand electric vehicles worldwide for the year.
“The company has approximately 4,700 vehicles in its currently inventory, carried over from 2023 and including 2024 production,” the company said. “While it has not completed an NRV analysis for 2024, Fisker believes the completed vehicle value for its inventory as of March 15, 2024, is in excess of $200 million.”
“Fisker will pause production for six weeks starting the week of March 18, 2024, to align inventory levels and progress strategic and financing initiatives,” it added.
Reuters reported last month that signals from the car company indicated that there was “substantial doubt about its ability to continue” due to the financial health of the company.
The Wall Street Journal reported last week that the company hired outside help to assist with a possible bankruptcy filing.
The company’s struggles comes as the Biden administration announced on Wednesday that it would continue its efforts to destroy the gas-powered car industry by implementing the most extreme pollution restrictions in history on automakers.
The Washington Post, which called the effort “controversial,” noted that the rule will force automakers “to ramp up sales of electric vehicles while slashing carbon emissions from gasoline-powered models.”
The Environmental Protection Agency (EPA) claimed that its national pollution standard, which could end up getting killed in the courts, would prevent more than 7 billion tons of carbon emissions, which it claimed would provide $100 billion in annual benefits to the U.S.
The announcement was met with swift backlash online across the political Right, who warned that Biden’s agenda would damage the American car industry.
“Biden’s latest ban on gas-powered vehicles and replacement with electric vehicles is another direct assault on consumer choice and the American way of life,” said Sen. Ted Cruz (R-TX). “It ignores the needs of American families in order to appease the radical environmental lobby at the expense of millions of jobs supported by the automotive industry. It’s time to put an end to this regulatory overreach.”
I guess the leftists in government didn’t tilt the playing field enough.
Yeah.
They got away with it over Obamacare so they figure they can mandate purchases elsewhere.
Meanwhile previously insurance had to have some minor competition between each other, but now they’re mandated to be equally crappy and deficient.
Why are they having problems? See this: https://www.youtube.com/watch?v=6xWXRk3yaSw
When your product doesn’t sell, and is not expected to show any increases in the near future, it’s time to call it quits.
And it’s not time to drag anyone else into losses by trying to raise funds that have no expectations of ever being paid back.
When the only people pushing a dead product are all in government, then, you know the product is a really bad idea.
The numbers are squishy (probably intentionally so), but I think I’m reading:
* 1,000 vehicle production worldwide in 2024
* 4,700 vehicles in inventory, carried over from 2023 plus 2024 production
So they carried over 3,700 vehicles from last year that they cannot sell and added 1,000 this year they cannot sell.
They are cagey about vehicles produced and sold. If it was good news, they’d be crowing about it.
Conclusion: They are done for.
It’s not a pretty sight. It breaks down in tears every time it hits a red light. You don’t want to see the complete meltdown when battery charge gets below 10% and no charger within 100 miles.
fister...
Maybe it’s an emotional support vehicle
SELLING SAND IN THE DESERT?
LOL!
How is fiskar a start up? Obama gave them a ton of taxpayer money in about 2009.
Yep. The market is mostly saturated by now.
“mission is to “create the world's most emotional and sustainable electric vehicles”
They are circling the toilet, good riddance .
“Didn’t the Fisker company start out by making scissors or something? This is what happens when you abandon core competencies....”
You are thinking of Fiskars, Finnish company, hundreds of years old. The do make scissors and garden tools of which I have a couple.
EVs are the future:-(
Rumor is they are going to get a lifeline from Nissan..
They better watch out!
Have they no idea what can happen to a fella if they OVERVALUE their assets?
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