Fisker expects to deliver unsold 2023 vehicles in first quarter, gains dealer traction

(Reuters) - Fisker said on Tuesday it expects to sell all its nearly 5,000 unsold vehicles made last year by the end of the first quarter and that its newly announced dealer-partner model has gained traction.

More than 100 dealers in the United States, Canada, and Europe have expressed interest in becoming a Fisker dealer, the electric vehicle (EV) company said.

While the EV startup made more than 10,000 vehicles in 2023, it delivered only about 4,700 units of Ocean sport utility vehicles due to logistics constraints.

The sale of vehicles manufactured last year is expected to generate significant cash in the first quarter of the year, unlocking more cash for working capital, Fisker said.

Earlier this month, Fisker said that it would add dealerships alongside its direct-to-customer distribution model to expand its sales and delivery network.

Fisker said it will host dealers at its headquarters in Manhattan Beach during the week of Jan. 29 and several executives will attend the National Automobile Dealers Association (NADA) show in early February to meet with prospective dealers.

Fisker's shares rose 17% on Monday after the EV startup signed new agreements with an investor that allow the company to use intellectual property in pursuing more strategic collaborations, conditional upon new manufacturing partnerships.

The company's overall debt level has been reduced by $185.5 million to $324.5 million after a series of conversions by a senior convertible notes holder, Fisker added.

(Reporting by Akash Sriram in Bengaluru; Editing by Shweta Agarwal)