Either way, Fisker Automotive took a pretty good bite out of the federal government's planned line of credit that the California-based automaker can't access because of production delays related to the extended-range plug-in Karma.
Fisker said recently that it raised more than $100 million of new equity funding, which will be used to expand production and marketing-related efforts for the Karma, which went on sale last December. The company in total has raised more than $1.2 billion in private equity, about half of that within the past year and a half. One reason for the fundraising was because Fisker, which was granted a $529 million line of credit from the U.S. Energy Department in 2010, drew down just $193 million before the remaining $336 million was frozen because of Karma production delays. Fisker's press release on the new funding is available below.
Meanwhile, on the good news/bad news front, Consumer Reports last week shredded the $107,000 Karma in a review, saying that, among other things, its pickup, handling, interior, visibility and dash controls all failed to meet expectations.
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.
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.
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."
About Fisker Automotive, Inc.
Fisker Automotive is a new automaker with a mission to build an innovative, eco-driven company that redefines and reshapes how the world thinks about cars. The company is leading the auto industry with its unique Electric Vehicle with extended range (EVer™) powertrain technology, which combines the power and efficiency of electric drive with the range and freedom of a gasoline engine.
Fisker was established in Southern California in 2007 by top auto designer Henrik Fisker and business partner Bernhard Koehler. In 2008 Fisker unveiled the Karma, the world's first luxury Electric Vehicle with extended range. On sale since December 2011 the Karma was delivered to the market in record time. The Karma is the first and only American car to have won the coveted BBC Top Gear Luxury Car of the Year award, Automobile magazine named it 2012 Design of the Year, and TIME magazine listed the Karma one of the 50 Best Inventions of 2011.
Fisker is headquartered in Anaheim, California and markets its products through a growing network of independent retailers around the world. Fisker Automotive can be found online at www.fiskerautomotive.com