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Fisker to Shut Down Manhattan Beach HQ Amid Financial Pressures

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Written by Cláudio Afonso | Info@claudio-afonso.comLinkedIn | X

The EV startup Fisker is in the process of closing its Manhattan Beach headquarters relocating the employees to its La Palma office, three sources familiar with the matter disclosed to Business Insider.

The report follows the recent closure of Fisker showroom in New York as it transitions from direct sales to a dealer partnership model.

According to the report, Fisker informed employees las month that they would be relocated to the office in La Palma by the first of May which is located 40 miles way. The company started leasing the 73,000-square-foot office back in 2020.

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Fisker and the Continental Development Corporation, which leases the office space, declined to comment on the closure of the office, BI reported.

Fisker sold 30 units of its debut model Ocean in Germany during April, marking an increase from the 24 units sold in March. With 80 vehicles sold in the first quarter of the year, Fisker’s year-to-date sales now total 110 units as of the end of April.

In late March, Fisker initiated significant discounts on its 2023 inventory, with the Extreme variant now starting at $37,499 (reduced from $61,499), the Ultra variant at $34,999 (down from $52,999), and the Sport variant at $24,999 (previously $38,999).

In January, the company announced a business model shift from direct sales to customers to a dealer partnership model. One and a half months later, the EV startup said over 250 dealers in “North America and the rest of the world ” showed interest in selling its first production model Fisker Ocean.

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Last week, Fisker announced the addition of six dealer partners in the US bringing the number up to 12 as it continues to switch to dealer partnership model. The company has now a total of 24 locations when adding the 12 dealers in Europe — nearly the triple from the 9 dealer locations the company was partnering with four weeks ago.

In the recently filed annual report, Fisker said that was “selecting its dealers based upon multiple criteria, including a dealer’s ability to deliver a high level of customer satisfaction”.

Three weeks ago, in mid-April, Fisker had announced new dealer partners in the U.S. and Europe having. As of today, Fisker has dealer partners in six European countries including Denmark, Austria, France, Germany, Norway, and Switzerland. 

Fisker has recently withdrawn all financial and operational guidance for 2024 and appointed both Deutsche Bank and PJT Partners as financial advisors to explore strategic alternatives.

Written by Cláudio Afonso | Info@claudio-afonso.comLinkedIn | X

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The post Fisker to Shut Down Manhattan Beach HQ Amid Financial Pressures first appeared on EV.


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