Fisker Company Updates: Expansion to 100 Dealers, Improved Cash Flow, NHTSA Involvement, and More Details
Fisker Inc., the electric vehicle (EV) manufacturer, is making significant strides in reducing debt and expanding its distribution network.
The company's overall debt level has been reduced as a result of a series of conversions by the senior convertible notes holder. This move has put Fisker in a stronger financial position, enabling it to focus more on its product development and distribution.
Fisker is transitioning to a Dealer Partnership model in North America and a hybrid model in Europe for vehicle distribution. This change is anticipated to enhance Fisker's ability to turn new vehicles into cash by reducing the time vehicles are retained on its balance sheet. Initial dealer agreements are expected to cover California, Illinois, New York, New Jersey, Massachusetts, Florida, Maryland, and Canada.
The search results do not provide the name of the Country Manager for Canada at Fisker Inc., but the company has strengthened its leadership team with the addition of seasoned and experienced executives across various departments. Notable appointments include Angel Salinas as Chief Accounting Officer, Eric Goldstein as Head of Investor Relations, Beverly Lively as VP, Internal Controls & Audit, Dan Quirk as EVP, Finance and Accounting, Wolfgang Hoffman as Country Manager for Canada, and Amira Aly as VP, Marketing, Sales & Financial Service US.
Fisker has also entered into a second amendment and waiver agreement with the holder of its 2025 senior convertible notes, which no longer requires the company to maintain a minimum cash balance. As of January 19, 2024, the principal balance outstanding on the 2025 notes has been reduced by approximately $185.5 million to $324.5 million.
In terms of production, Fisker has approximately $260 million of parts, including batteries, which will support the production of Ocean vehicles in 2024. The company expects the first Oceans to be available in dealer showrooms in February.
Fisker has obtained a release from the investor of certain intellectual property belonging to Fisker upon the company entering into certain commercial agreements with an automotive original equipment manufacturer (OEM). This collaboration is expected to contribute to the company's cash flow in the coming months.
The Fisker Ocean, the company's flagship EV, has received positive reviews for its brake system, which meets or exceeds all US and international performance requirements. In December 2023, Fisker responded to customer feedback and issued an Over-the-Air update (Version 1.10) to the regenerative system of the 2023 Fisker Ocean, resolving reported braking issues.
Fisker has seen substantial interest from potential dealer partners across the United States, Canada, and Europe, with over 100 dealers currently engaged. The company held the largest meetup in company history, with approximately 2,500 owners and prospective owners gathering in 24 US locations and at six locations in Europe.
The carrying value of completed vehicles in Fisker's inventory at the end of 2023 was approximately $290 million. Fisker expects to sell most of the vehicles it currently has in inventory before the end of the first quarter of 2023, indicating a focus on liquidating its inventory to fund its growth and expansion plans.
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