2011 Fisker Karma

Fisker releases business update showing the company isn't in death throes

To hear some pundits say it, Fisker Automotive is in death throes because the Dept of Energy froze the loans, and the company laid off some workers, instead the company's inaugural business update paints the picture of a company successfully selling the Karma and raising investment dollars to launch production of the Atlantic.

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.


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