Fisker Stock Alert: Fisker is closing its California headquarters

Fiskers (OTCMKTS:FSRN) headquarters in Manhattan Beach, California, will soon be closed Business Insider and three Fisker springs. Last month, the troubled maker of the Ocean SUV told its Manhattan Beach employees that they would be relocated to another Fisker location about 25 miles away in La Palma, California.

When contacted by Business Insiderboth Fisker speakers and speakers from Continental Development Societythe landlord of Fisker’s headquarters, declined to comment on the situation.

Fisker is on shaky ground. The electric vehicle (EV) maker used $904.9 million of cash on operating and investing activities in 2023, leaving cash on hand of $325.5 million as of Dec. 31. As of April 16, the company’s cash and cash equivalents had fallen to just $53.9 million in unrestricted cash and $11.2 million in restricted cash.

Fisker closes Manhattan Beach headquarters

In its 2023 Form 10-K, Fisker issued a concerning going concern warning:

“Our ability to continue operating as a company depends on our ability to raise additional debt or equity financing, enter into a strategic partnership with an OEM and generate cash from vehicle sales. We require significant additional funding in the short term to implement our business plan and continue our operations.”

At the end of April, the company informed its employees that it was in talks with four car manufacturers about a takeover. There have been no updates since then. This came after a failed $400 million investment Nissan (OTCMKTS:NSANY), who was reportedly interested in Fisker’s unreleased Alaska truck and truck platform.

Fisker desperately needs a helping hand as its attempts to sell the Ocean SUV were met with weak sales. In 2023, the company produced 10,193 Oceans but only delivered 4,929 of them. The weak demand was attributed to a variety of software problems that left users unhappy. Earlier this year, Fisker announced price cuts of up to 39% for the Ocean, significantly reducing the vehicle’s value and angering existing owners.

Fisker employees are also at risk. In an internal email, the company noted that there could be a round of layoffs on June 28 if it is unable to implement a sufficient restructuring plan.

On penny stocks and low volume stocks:With only the rarest of exceptions, InvestorPlace does not publish commentary on companies that have a market capitalization of less than $100 million or trade fewer than 100,000 shares per day. Because these “penny stocks” are often a playground for fraudsters and market manipulators. If we ever publish commentary on a low-volume stock that may be affected by our commentary, we urge InvestorPlace.com writers to disclose that fact and warn readers of the risks.

Read more: Penny Stocks – How to Profit Without Being Scammed

At the time of publication, Eddie Pan did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.