A Company Witnesses 40,000 Canceled Orders, on the Verge of Bankruptcy
Nguồn tin của tờ BI cho biết, hàng chục nghìn khách hàng của Fisker đã hủy đơn đặt chỗ mua xe. Đáng nói, điều này xảy ra trong bối cảnh công ty ô tô điện này đang cố gắng tìm kiếm nguồn tài chính bổ sung và đối mặt với nguy cơ phá sản.
Is Fisker Facing Bankruptcy?
According to internal data revealed by BI, more than 40,000 out of over 70,000 pre-orders for the Fisker Ocean model have been canceled. On average, Fisker has been witnessing 70-80 cancellations per day in recent weeks. The company started accepting pre-orders in November 2019 and announced in February 2023 that they had received “approximately 65,000” pre-orders before the first batch of deliveries.
The increasing cancellation rate is a significant concern for the company, as potential sales are declining at a time when Fisker needs to generate additional revenue.
Implications of Canceled Orders
The cancelations not only affect Fisker’s potential sales but also incur costs for the company. While customers are refunded the $250 deposit for canceling an Fisker order (excluding a $25 processing fee), those who pre-ordered multiple vehicles are eligible for a full refund of $100 per vehicle.
The exact number of refunds issued by Fisker since November 2019 is unknown. However, estimates suggest that the cost of the approximately 40,000 canceled orders could amount to around $9 million.
Additionally, the company has experienced a significant number of order cancellations that do not qualify for full refunds. According to the company’s website, customers who cancel their orders after Fisker has started the shipping process will forfeit the $5,000 deposit and the transportation fee.
Despite these challenges, Fisker has delivered over 6,000 vehicles since the launch of the Fisker Ocean SUV in June 2023.
Financial Struggles and Potential Solutions
While Fisker confirms its ongoing deliveries, the company has refused to comment on the order cancellations. In February, during Fisker’s earnings report, the company warned that it might not have enough funds to survive until the end of 2024.
As of March 15th, Fisker had approximately $121 million in the bank but had temporarily halted electric vehicle production for six weeks. On March 18th, the company secured a funding commitment of up to $150 million from existing investors. However, on March 22nd, Fisker stated in a legal filing that negotiations with a major automaker had failed, and they were evaluating alternative strategic options.
The Rise and Struggles of Electric Vehicle Startups
Fisker is one of the successful electric vehicle startups that went public earlier this decade, often through special purpose acquisition companies (SPACs), expediting their market entry. Their rise coincided with increased investor enthusiasm for companies aiming to emulate Tesla and penetrate the highly competitive automotive industry.
However, startups like Fisker have faced challenges in scaling up production and dealing with declining demand for electric vehicles in the US market.
Fisker delivered its initial vehicles to US customers in June, just as signs of slowing sales growth began to emerge. The company revised its demand forecast twice last year and implemented price reductions due to “competitive realities.”
If Fisker does file for bankruptcy protection, it will mark the second collapse of an automaker founded by former BMW and Aston Martin designer Henrik Fisker. The first company, Fisker Automotive, filed for bankruptcy in 2013.
Fisker’s stock price has plummeted over 97% since its IPO in 2020, reaching 32 cents per share at Wednesday’s close. The company’s stock has been trading below $1 for the entire year and faces the risk of being delisted from the New York Stock Exchange.