Fisker releases business update showing the company isn't in death throes
Fisker Automotive issued a "business update" today saying the company's business and funding is solid, with over $1 billion in equity investments, and sales of over 1000 Karma's. The news release doesn't say it, but this business update seems targeted at answering naysayers criticisms over the last couple months following the loss of the Dept of Energy loan and subsequent layoff of the workers preparing the factory for manufacturing the Atlantic.
The company has generated over $100 million in revenue in the last four months. Additionally the company has delivered over 1,000 Fisker Karma's since the December 2011 launch of that vehicle. Demand is strong for the Karma, with brisk sales in the Netherlands and a distribution agreement in the Middle East.
While the company lost the Dept of Energy loan, and subsequently laid off the workers retooling the plant at which the Fisker Atlantic was due to be built, Fisker Automotive has continued raising equity investment. We noted this earlier, that the company was in the middle of its Series D financing round when the DOE froze the loans, and the response by Fisker's management was to double down on raising private equity. The company has raised $174 million of additional private financing since the start of the year, reaching a milestone of raising over $1 billion in equity since the company's launch in 2007.
In April when the company revealed the long-awaited Fisker Atlantic, company management kept a tight lip on whether the frozen DOE loans would delay manufacturing of the Atlantic. The loan program included $350 million earmarked to support production of the Atlantic, and losing that funding would obviously throw a kink into the business plan. The additional equity raised so far does not match the $350 frozen by the DOE, and while Fisker's management is showing bravado in trumpeting their prowess at raising investment dollars, what will matter is when will the company raise enough to restart the production of the Atlantic. In February, Fisker's spokespersons downplayed concerns over funding, saying the company was pursuing a "plan B" in raising private equity financing rather than relying on the DOE loan.
Originally the Atlantic was slated to begin production in late 2012 or early 2013. Clearly, because the layoff affected the workers preparing the factory at which the Atlantic was to be manufactured, production of the Atlantic will be delayed. The question is, by how much? Recently leaked internal Fisker documents say the Atlantic launch will slip until 2014.