Fisker running low on cash?

[brian]

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/20...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

[ct-fiskerbuzz]

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.

[Fabulist]

(02-07-2012 04:50 AM)ct-fiskerbuzz Wrote:  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.

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

-- Fab.

[BillyO]

(02-07-2012 04:46 AM)brian Wrote:  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/20...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

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

[doug]

http://www.nytimes.com/aponline/2012/02/...ml?_r=1&hp

Quote: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.

[brian]

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

-Brian

[doug]

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

[Michael]

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

[BillyO]

(02-07-2012 08:42 AM)brian Wrote:  Eesh... sounds like Obama doesn't want to give them anymore money.

-Brian

Are you happy you gave them your money?


BillyO

[brian]

(02-07-2012 08:57 AM)BillyO Wrote:  Are you happy you gave them your money?

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

---

Just saw this: http://www.google.com/hostednews/ap/arti...6f40143ab8

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

-Brian