Fisker running low on cash?

Obviously I have no idea what sort of profit or loss they make per car, but assuming it's anywhere close to $0, at $100k/car, it's easy for cash to run up or down $10 million in a few days (since that's just 100 cars either paid-for or not-paid-for). It's an easy bet that this is a cash flow issue rather than a profit/loss issue.

Companies can, of course, be killed by cash flow issues ... but they're tractable if you can get loans.

ct-fiskerbuzz said:

Obviously I have no idea what sort of profit or loss they make per car, but assuming it's anywhere close to $0, at $100k/car, it's easy for cash to run up or down $10 million in a few days (since that's just 100 cars either paid-for or not-paid-for). It's an easy bet that this is a cash flow issue rather than a profit/loss issue.

Companies can, of course, be killed by cash flow issues ... but they're tractable if you can get loans.

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I am guessing this has a lot to do with the DOE Nina loan rather than the current operating cash for the company.

-- Fab.

brian said:

Apparently Fisker has had to lay of some folks because they're trying to save $, but the news story sounds a little ominous: http://www.delawareonline.com/article/20120206/BUSINESS09/120206030/Fisker-lays-off-workers-Delaware-Calif-?odyssey=mod%7Cnewswell%7Ctext%7CHome%7Cp

I had always given Fisker a 40% chance of survival, and after the 6.13 fiasco I had lowered it to 30%, but now this news story has me worried it might be closer to 20%.

-Brian

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That explains why they are rushing to deliver cars even though the software is not fully developed. I bet the investor pool is getting rather shallow now. I'm hoping they secure another round of funding to get them over the hump. Does anyone know if they are still trying to raise cash through KP?

BillyO

http://www.nytimes.com/aponline/2012/02/06/business/AP-US-Fisker-Layoffs.html?_r=1&hp

The layoffs come as Fisker works to renegotiate its loan agreement with the Department of Energy. The agency is withholding loans for the Nina project because Fisker missed certain sales and development milestones for the Karma.

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Eesh... sounds like Obama doesn't want to give them anymore money.

-Brian

Well what were those "sales and development milestones"? Was that information published? Fisker had recently scaled back their sales projections.

if fisker goes bust i guess it wont look so good for obama and its election year. Hope they can secure the finacr needed

brian said:

Eesh... sounds like Obama doesn't want to give them anymore money.

-Brian

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Are you happy you gave them your money?


BillyO

BillyO said:

Are you happy you gave them your money?

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Hehe... I ask myself that question every time the car malfunctions. The answer is YES. They may very well go out of business by the end of the year, but for the money I'm still happy I got this car even if it turns into a giant paperweight.

-Brian[hr]
Just saw this: http://www.google.com/hostednews/ap/article/ALeqM5gm3Y0fC4OaKwSkk3pauOonAmQhMA?docId=bffaf722c7534b8187c5756f40143ab8

Seems to be the most detailed report on the situation so far.

-Brian

With 850 mil. in private equity invested, and all-stars like KP on board, I'd say Fisker's odds to succeed are better than most. I'm sure KP and other large Fisker investors are quite capable of finding enough cash to ensure the company makes it over the hump and survives, at least for a period of time to give Nina a chance. I still believe in them, IF they can sort the product reliability problems. :s

Post-Solyndra and during an election year, it's not exactly the best political climate to have to renegotiate a DOE loan because you've failed to reach milestones.

what happens if fisker goes bust and the warranty on the cars? dont think the dealers will be able to fix software buggs and what about spare parts?

doug said:

Post-Solyndra and during an election year, it's not exactly the best political climate to have to renegotiate a DOE loan because you've failed to reach milestones.

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Agreed. I wish Fisker could make it work without the DOE.

Michael said:

what happens if fisker goes bust and the warranty on the cars? dont think the dealers will be able to fix software buggs and what about spare parts?

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One of the benefits of outsourcing is that if Fisker goes under, most parts would probably still be available. Hopefully the free market would come up with work arounds to make the car usable but it won't be cheap.

BillyO

Silver lining is to replace designers with better designers. A clean out process.

Sensible to conserve cash now. Fisker will survive. If it is too easy, every brothers will be starting up a car company. Fisker got to where it is today is an amazing accomplishment. I am sure Fisker has every intention to look after their customers.

Karma might have some software problem and it can be solved over time, no worries.

In the mean time, treat it gently, wait for the complete boot up, don't use USB and enjoy the car.

It would probably be easier if there were more karmas I'm the wild. With a broader market more vendors would be likely to service the needs of "abandoned" owners.

I wondered why they ramped up to 650 employees in Irvine after most of the R&D was complete. Maybe they were trying to reach some kind of arbitrary employment goal.

BillyO

BillyO said:

I wondered why they ramped up to 650 employees in Irvine after most of the R&D was complete. Maybe they were trying to reach some kind of arbitrary employment goal.

BillyO

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Judging by the state of our cars, the R&D still has a long way to go. Plus they are constantly working on Nina and the other downstream platforms. The design and engineering is all in Anaheim. The group working in Delaware are on the manufacturing side, who are not needed until there is something to manufacture.

-- Fab.

BillyO said:

I bet the investor pool is getting rather shallow now. I'm hoping they secure another round of funding to get them over the hump. Does anyone know if they are still trying to raise cash through KP?

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From the articles quoted:

Fisker said it raised $260 million in private equity in late 2011, bringing total private equity financing to more than $850 million.

In the 4 weeks that I have been driving my Karma around Silicon Valley, I have had 3 people introduce themselves to me and tell me they were investors in the company. Two of them invested early and have re-upped in subsequent rounds; the third invested in the latest financing referenced above.