Electrical-vehicle maker Fisker stated on Friday it’ll scale down manufacturing this month and produce fewer vehicles this 12 months than its earlier steering, to prioritize money for working capital wants.
Shares of the EV maker, which has been scuffling with a money crunch, rose 7% in premarket.
“Fisker has made a strategic decision to reduce December production to prioritize liquidity to unlock over $300 million of working capital,” the corporate stated.
Fisker lower its manufacturing goal for the 12 months — a minimum of a second time — to only over 10,000 models, in contrast with its earlier forecast of 13,000 to 17,000.
The corporate stated it delivered 123 automobiles on Thursday, including it plans to accelerates sale and deliveries regardless of the robust market situations for EVs.
Some EV corporations are dealing with dwindling money reserves, pressured by excessive prices associated to manufacturing ramp-ups and inflation and worth cuts by rivals such Tesla.
In its most up-to-date monetary outcomes, which had been filed after a delay as a result of departure of its former accounting chief, Fisker reported a lack of $91 million and income of $71.8 million for the third quarter, each lacking expectations.