Electric Car Company Fisker May Be Running Out Of Juice


About five years ago, former Aston Martin Design Chief Henrik Fisker founded his own company, Fisker Automotive, to build the first premium plug-in electric hybrid cars. Its first model, the $103,000 Karma, pioneered the segment that now has players from across the industry.

Fisker was also the recipient of a $528 million loan from the Department of Energy that was supposed to spur manufacturing and development in green tech.

But according to a report on CNN, Fisker has just laid off 26 workers because they have not received the full amount of the loans quite yet.

They have also had to delay the opening of a plant in Delaware that would be able to produce a second, more affordable car, the Nina.

The $528 million loan was not a lump sum, but was to be paid out in installments as production goals for the cars were met.

Unfortunately, Fisker has missed some production goals and the payments are not coming as they had initially expected. CNN reports that to date, Fisker has received approximately $193 million of the promised funding. Fisker has said they are now working with government to try and renegotiate the terms of the loans to get capital flowing into the company again.

The lack of funding has caused Fisker to lay off excess workers. The former GM plant in Delaware that was to build the Nina and provide up to 2,000 jobs appears to still be sitting dormant.

Now take a look at a new way to charge an electric car >

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