Shares of Fisker (NYSE:FSR) crashed 25% in after-hours trading Thursday after the electric vehicle startup reported much worse-than-expected preliminary results for the fiscal fourth quarter, and signaled significant doubts about its status as a going concern.
“The company’s business plan is highly dependent on the successful transition to its new Dealer Partner model in 2024," the company said in a statement.
"Furthermore, to the extent Fisker’s current resources are insufficient to satisfy its requirements over the next 12 months, the company will need to seek additional equity or debt financing, and there can be no assurance that Fisker will be successful in these efforts,” Fisker said in the statement.
Without accessible financing or if financing terms are unfavorable, the company might need to cut investment in product development, downsize operations and staff, and lower Fisker Ocean production. Such actions could negatively affect Fisker's business and financial outlook, it warned.
“As a result, the company expects to conclude there is substantial doubt about its ability to continue as a going concern when its annual financial statements for the year ended December 31, 2023, are filed with the SEC.”
As for its preliminary results, the company posted a loss per share of $1.23, notably higher than the loss per share of $0.23 expected by analysts. Revenue for the quarter came in at $200.1 million, also well below the consensus forecast of $327.73 million.
Alongside this, Fisker also said it will reduce roughly 15% of its workforce.