Fisker Falls Short of its $150 Million in Private Funds, but Raises Enough to Continue

Fisker Atlantic

So, Fisker has been out and about doing its corporate panhandling, err, "fundraising program" in an attempt to raise $150 million to keep its doors open and develop a red hot following to the on-fire Karma, which sold 1,500 models – all of which have been recalled at least once. Fisker plans to release this new follow-up model, the Atlantic, in December 2012.

Well, it looks like interest is starting to decrease in the Fisker line up, as it fell a full $50 million short of its fundraising goal. Fisker’s latest CEO stand-in, Tony Posawatz, seems to think that this is plenty of money to keep the heat turned on and develop its follow up model to the Karma. In a statement, Posawatz said ““We are grateful to both our investors and our initial customers who have supported our company and are quickly becoming our biggest advocates.” He also said “This is another major vote of confidence in Fisker’s pioneering technology and business model”

Last time we checked, falling short of a goal by 33 percent is far from a “vote of confidence.” Then again, Fisker did thank its initial customer base, which we are sure will add plenty to the pot as they pay to upgrade the crummy infotainment system in the Karma that Fisker said it will not upgrade for free.

Since 2007, Fisker has swindled investors out of $1.2 billion dollars and the federal government also tossed in an additional $193 million before turning off the leaking faucet that was its $529 million loan promise to Fisker. So that means they blew through about $240 million per year.

So the Fisker saga will continue for at least a short amount of time, as that $100 million likely won’t get them too far – maybe another six months. We should get to see at least a few CEO changes as it burns through the quarters and pennies that investors tossed into Fisker’s coffee can as they drove by…

We wonder how Tesla is doing…

Click past the jump to read Fisker’s press release.

Press Release

Fisker Secures New Equity Funding

Fisker Atlantic

Fisker Automotive has completed the initial closing of its current equity financing, representing in excess of $100 million of new funding.

This initial closing will provide the company with funding for continued product development, market expansion and a new global marketing campaign for the Fisker Karma, the world’s first luxury Electric Vehicle with extended-range (EVer™).

Fisker expects to continue to utilize equity financing to support its business plan that combines continued sales of its inaugural Karma model with market expansion into the key Middle East and China markets, along with further development work on its second production model, the mid-size Atlantic sedan.

Fisker Atlantic

Since its inception in 2007, Fisker Automotive has raised over $1.2 billion in private equity and borrowed $193 million under the Department of Energy Advanced Technology Vehicle Manufacturing (ATVM) loan program. In the last 18 months, the company has raised in excess of $600 million in private equity, with nearly $300 million of this total coming since it brought the award-winning Karma to market in December last year.

Tony Posawatz, Fisker’s CEO said: “This is another major vote of confidence in Fisker’s pioneering technology and business model. We are grateful to both our investors and our initial customers who have supported our company and are quickly becoming our biggest advocates.”

Since being launched in December, nearly 1,500 Fisker Karma sedans have been delivered to customers in the US and Europe, bringing the company a further stream of revenue and helping to attract new investment interest.

Fisker Atlantic

Adds Tony Posawatz: “The Karma is already a testament to US automotive innovation and advanced technology and we intend to announce our production plans for the Atlantic and a timeline by December of this year.”

Henrik Fisker, founder and Executive Chairman of Fisker, said: "The latest financing arrangements mark an important milestone for Fisker. We are now poised to invest in the next generation of extended-range battery electric luxury cars and another chapter in the fast-paced expansion of Fisker Automotive, and are demonstrating our commitment to long-term success.”


9 comments:

So, with $1.2 Billion spent, and 1500 cars sold at 100 grand a pop, they’re spending 8 times on each car what they sell it for. Sounds about like the typical business model for a government-subsidized ’green tech’ company.

i guess you guys are right. it would be shame to lose all that work and development and research done in the last years!

i still think they might. buying research already done is cheaper than doing it again!

may, or may not! that is to be seen!

300 million in 9 months from sales alone is not bad. not at all. someone could invest into that and even come out with a profit in some years.

opening to china may increase their funds, as there are lots of people with lots of money there.

beauty or not, it comes at a price. and if that is too high, that’s what it comes to.

who would have the soul to cut the funds for that beauty?

a beautiful car, but still: that’s a lot of money!!!

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