It wasn't long ago that electric vehicle (EV) sales were gaining traction and appeared on the cusp of breaking into mainstream territory. Oh, how quickly things can change. Start-up EV maker Fisker (NYSE: FSR) is now struggling to survive amid high interest rates, charging infrastructure challenges, intensifying competition, and a dwindling cash pile. But is Fisker stock doomed to drop to zero, or is there still hope for long-term investors?
In late February, Fisker reported a rough fourth-quarter net loss of $463 million while announcing plans to slash 15% of its workforce. While the company managed to generate $200 million in revenue, Fisker's cash and cash equivalents dwindled to $396 million.
Those ugly numbers were driven by a full year of challenges, including delays with suppliers and troubles delivering vehicles to customers. In fact, Fisker only managed to produce 10,000 vehicles in 2023, which was less than a quarter of its initial guidance, and it couldn't even deliver half of those vehicles.
Source Fool.com