Fisker Automotive is seeking a further US$150 million in funds before it can produce the second model in its line-up, the BMW 3-Series-rivalling Fisker Atlantic.
It will feature the second-generation of the Ever Hybrid system – Fisker’s own technology utilised in the Karma – and compete against models from the German luxury brands.
The alternative-fuel car brand has acquired more than US$1 billion already in funds through private investors since its establishment in 2007, though the company says it is seeking more cash.
“We need money on our balance sheet to fund operating expenses,” Fisker director Ray Lane told industry journal Automotive News. “And we need money to fund the development of the next car. We’re raising some of that money now, and some later.”
US$400 million has already been accumulated within the last 12 months, but earlier this year access to more than half of a US$529 million government loan was denied, sparking a need for more funds to break even and allow for expansion.
“Fisker originally had planned to replace its government-backed loan with high-yield debt plus equity, but shelved that plan in favour of simply raising more equity,” Lane said.
Fisker Automotive may need to turn back to private investors for funds because, unlike similar luxury alternative-fuel vehicle company Tesla, Fisker does not intend to raise money through initial public offerings.