Fisker Inc. faces significant challenges as it grapples with a staggering $463 million net loss in Q4, prompting concerns about its future viability. The company is planning to implement a 15% reduction in its workforce to mitigate the financial strain. Despite these setbacks, Fisker claims it is actively engaging in discussions with a major automaker regarding a potential investment, although the identity of the automaker has not been disclosed.

Electric vehicle startup Fisker Inc. issued a sobering statement on Thursday, expressing “substantial doubt about its ability to continue as a going concern” following a fourth-quarter net loss of $463 million and the announcement of a 15 percent reduction in its workforce.

While Fisker reported $200 million in revenue for the fourth quarter, it acknowledged the need for additional resources to sustain its business plan. The company disclosed having $396 million in cash and cash equivalents, alongside vehicle inventory and raw materials valued at approximately $530 million as of Dec. 1.

CEO Henrik Fisker outlined plans to leverage the company’s franchised dealer network to bolster sales model, marking a shift away from its earlier direct-sales model implemented earlier this year. The automaker disclosed delivering 3,818 units of its Ocean crossover in the fourth quarter, with a total of 4,929 units delivered throughout the 2023 calendar year.

The Ocean represents Fisker’s inaugural vehicle, launched in June across North America and Europe. Fisker Inc. anticipates global Ocean deliveries to range between 20,000 and 22,000 for the current year. Initially, the automaker had projected production as high as 36,000 units for 2023.

However, the final tally fell short, reaching just over 10,000 units. Notably, approximately half of these units were delivered by the end of the previous year.