Keep in mind 4,000 @ $40,000 each is $160million. Also, lets talk about sunk costs versus operating costs. Bear with me I'm not experienced with a car manufacturing so I don't know the exact margins, but think about it this way. When you sell a new car for $70,000 each a huge chunk depending on expected volume is to cover all the "past" development costs. These are called "sunk" costs. Money that is spent and only related to recovering your investment and not the day to day. So lets say, $30,000 was to cover those past costs and then reinvest into developing the next vehicle and growth and so on. Now lets say from an operation point of view the car cost $25,000 to build, $5,000 in selling costs and say $5,000 in ongoing development (think your software updates) and warranty costs. Then you hope to make $5,000 net profit per vehicle. Can you make money yes, as long as you can keep selling those cars. Then when you 'refresh' the model, the cost is nowhere near as much. When you develop another vehicle if you can borrow some technology towards that next one it doesn't cost as much to develop and so on. So all those unsold 2023's, you can look at that cost as "sunk" or operating. I would think the restructuring officer will look at this closely. How much cash can we produce selling off some inventory, and how much can we still make continuing to manufacture and selling new 2024 models. Now this assumes the cars are actually selling. I'd be surprised if the discounted 2023's are not selling fairly quickly. I'm also sure this guy will say, hmmm, how much can we realistically sell 2024's for. Maybe they drop the prices $10,000 across the board, maybe not. Anyone who has been around long enough knows that there are times you can walk into any North American car Stealership (not a typo) and they might knock off $5,000 or 10,000 of the price plus the manufacturer offers another $10,000 off. Yes they are still making money. Toughest part though is when you need cash to develop a new product. That's why the Nissan deal was important to inject cash to not only help with the current cash issue but also to cover the costs of developing the Alaska. If you really want to understand possible outcomes, then click the link in my prior post and search some of the companies listed under the new CRO's profile. Most important question to ask here is, are Oceans selling? Will they continue to sell? If the answer is yes, there is a good chance of survival in one form or another. If the answer is no, then probably not. Is there any value left in that case, maybe.
@@matthewspry4217 Add back $3k. If only we knew manufacturing cost. That is cost of each added vehicle versus selling price. Also actual sales volume. I'd love to know what kind of uptick in sales they might have at the lower priced 2023's. Might give an idea how much pricing power they may have, if any. Hopefully as more hit the road it will peak more customer interest. It is a lot nicer looking than a lot of other EV's out there. Don't expect a good Operating P&L for quite a while. ....
Your the only RUclipsr I look forward to watching for updates on Fisker Automotives and the stock. First off, I was excited from day one several years back when I heard about Henrik coming out with the Ocean SUV. I thought it was a beautiful EV. Immediately told myself to make sure to invest in them. I never got a chance. But now here I am, bought in a few weeks back and kept buying. I think the Ocean SUV is well designed and built. My wife and I would love to buy one. Would be our first EV. I agree with you. They are fighting for their lives and I think they are trying to survive this. Henrik has poured his blood and tears into this company and the Ocean SUV. I think he is not going down without a fight. I hope they can restructure and work things out with the note holder. Fight another day as you said. I'm praying for a miracle. God bless.
@@2023gainerI think Adam lost money on the stock like the majority of us and he kind of became a villain and bias and omitting a lot of information that came from the last 8k
Thanks for keeping us posted. I picked up my Fisker Ocean One this weeekend. Loving it and struggle to see what all the hate is about. Granted I have OS 2.0 1/2, so I have never tried previous software.
Let's Bring the Volume this week and close above 10 cents. Already over halfway there. FSRN... Fisker leading the EV sector and most of the tech sector in Gains... Thumbs Up video and positive comments....and SHARE on other platforms.
Pure Coincidence that Fisker 10- K released this morning...the same day as Tesla earnings....??.. I Love It ...Will we be visiting Tesla RUclips videos today/ tonight..?? Hit the LIKE...here.
Well, another rumor is out that Stellaris could buy out?. But you are doing a great job by being objective and plain honest, the Scandinavian way, it's about following facts as real data that give a true clarity, really appreciate it, Tom (Danish immigrant in the US now, I was close to become a clay modeller at Fisker Inc. about 7 years ago now, a dream job as a former Lego Master Builder/designer) The link is from Germany: ruclips.net/video/aH-4sfzuUsY/видео.html
"Our cash and cash equivalents balance further reduced to $53.9 million of unrestricted and $11.2 million of restricted at April 16, 2024." I wonder whether that number already considers the revenue from the fire sale... hope it does not!
Thanks for your good thoughts. I read something that Stellantis may be interested. I still think this would be an excellent opportunity for Apple to accomplish what they started some time ago but never finished. However it goes, I am proud to be on board - good luck to you and all.
I think the extension was granted because the holder of the note knows that if the company goes bankrupt now, despite having priority, they’re not going to recoup their investment. Besides existing inventory, Fisker really has no assets to speak of; no factories, no tools, no equipment, no cash, no accounts receivable, no brand equity. Henrik likely promised an incoming injection of capital (hence the three million, possibly sourced from a friend, family, or proceeds from sale of his house), and agreed to a bare bones budget and a CRO as terms of the extension. It all seems rather bleak, but I think the appointment of a restructuring officer is a positive; it gives them a last chance to make it or break it… and another chance for a company in distress can’t be a bad thing.
My views of the need of the back up CRO. There are likely conditions to the restructuring process which maybe off limits eg changes to the management team ie Geeta that the CRO may not be agreeable to and that the backup CRO is more accomodating.
Sorry, but I don't see how bankruptcy benefits the note holder. Creditors do not push for this unless they are sure they can get their money back, or (in this case) Fisker has enough assets or income for bankruptcy to be worth it. Sounds like the note holder knows this and therefore is open to other arrangements for debt repayment. Otherwise, why grant an extension?
@@matthewspry4217 Sold 4,900 in 2023... another 1,300 in Jan / Feb..March sales not yet reported. April could be best month ever due to discounts and dealerships.
One glaring point missing IMHO. Notice the restructuring does not include any statement of restarting production. Although I hope the company survives. All statements of the new appointments and budgets etc only leads to the benefit of the note holder clawing as much of its investment back. This is a controlled exit strategy from the note holder unfortunately. Any investor incl the note holder would not want to spook the market until they are out. Hope does not replace business fundamentals I'm afraid.
Production restart a separate issue that involves the contract with dealerships and funds to pay Magna. That's probably the reason this offer has an expiration date.?
The bankruptcy stuff I'm not well versed in but I actually have the paperwork to purchase my Extreme sitting in my inbox. Putting the investor stuff aside, what does this mean for a potential Ocean owner if I move forward?
@Ocean1 I am sure you are or will be working on a new video. So, allow me to say two things: 1) these guys saying that Fisker has no assets... Jesus. They simply do not understand the difference between tangible and intangible assets. Fisker has HUGE intangible assets, and those are the company itself AND the car. Hundreds of million dollars have been invested in the creation and execution of Fisker Ocean. Once the software is reliable and, make no mistake, it will be, the car will be a huge success. That scenario is worth billions of dollars (american dollars - not zimbabwe dollars!). Fisker Inc, as it is, is a steal! Let alone after software overhaul that will guarantee a one of a kind experience for EV's enthusiasts. 2) now that the 10K has been filled, do you think Fisker Inc. stands a chance to revive the loan that was on the table last March, 15th?
I have no interest in doing that. Everything in the 10k is now over four months old. I seriously doubt we could learn much from it that could help us either way.
@@abaza.ibrahim having the 10k on file is absolutely a good thing. It won't affect BK or success in either way. Remember, the 10k just goes thru December 31st of 2023.
Index to financial statements part 1 , I just copy and paste here one small part of the 10k “Our first model, the all-electric Fisker Ocean, has already garnered numerous awards for its design. As of April 16, 2024, the Company has delivered over 6,400 Oceans.” So this is updated and that is it bad news since they only sold that amount?Correct me if I’m wrong, thank you for all the information you have gave us!
Magna is laying off 500 workers in Austria because they will not be making more Fiskers. company is dead and the car is unfortunately as dead as all previous Fiskers. Great car, terrible, terrible leadership.
I believe the second CRO will take over Thursday at midnight and start his process of liquidation. This appears to be the note holder playing hard ball and has come to their conclusion that this goes to the next level. I could be wrong but we shall see. I do not think there is a deal the note holder can accept by the current CRO. I personally don’t see this as anything positive but who knows…let’s hope it works out.
It sure feels like Henrik and Geeta have been sidelined. The noteholder and the first CRO will be calling the shots now and their primary objective will be to maximize recovery for the noteholder and they basically only have a few days to put things in place. Failing that, they will switch CRO horses which I would assume launches the BK filing. Should know in 48 hours!
More likely out of court restructuring if the noteholder rejects the offer. Already down to only 343 million shares. ... nearly 2 billion authorized to give more to lenders if needed.
Keep in mind 4,000 @ $40,000 each is $160million. Also, lets talk about sunk costs versus operating costs. Bear with me I'm not experienced with a car manufacturing so I don't know the exact margins, but think about it this way. When you sell a new car for $70,000 each a huge chunk depending on expected volume is to cover all the "past" development costs. These are called "sunk" costs. Money that is spent and only related to recovering your investment and not the day to day. So lets say, $30,000 was to cover those past costs and then reinvest into developing the next vehicle and growth and so on. Now lets say from an operation point of view the car cost $25,000 to build, $5,000 in selling costs and say $5,000 in ongoing development (think your software updates) and warranty costs. Then you hope to make $5,000 net profit per vehicle. Can you make money yes, as long as you can keep selling those cars. Then when you 'refresh' the model, the cost is nowhere near as much. When you develop another vehicle if you can borrow some technology towards that next one it doesn't cost as much to develop and so on. So all those unsold 2023's, you can look at that cost as "sunk" or operating. I would think the restructuring officer will look at this closely. How much cash can we produce selling off some inventory, and how much can we still make continuing to manufacture and selling new 2024 models. Now this assumes the cars are actually selling. I'd be surprised if the discounted 2023's are not selling fairly quickly. I'm also sure this guy will say, hmmm, how much can we realistically sell 2024's for. Maybe they drop the prices $10,000 across the board, maybe not. Anyone who has been around long enough knows that there are times you can walk into any North American car Stealership (not a typo) and they might knock off $5,000 or 10,000 of the price plus the manufacturer offers another $10,000 off. Yes they are still making money. Toughest part though is when you need cash to develop a new product. That's why the Nissan deal was important to inject cash to not only help with the current cash issue but also to cover the costs of developing the Alaska. If you really want to understand possible outcomes, then click the link in my prior post and search some of the companies listed under the new CRO's profile. Most important question to ask here is, are Oceans selling? Will they continue to sell? If the answer is yes, there is a good chance of survival in one form or another. If the answer is no, then probably not. Is there any value left in that case, maybe.
Warranty claims are owed by magna styr and not Fisker 💪
@@matthewspry4217 Add back $3k. If only we knew manufacturing cost. That is cost of each added vehicle versus selling price. Also actual sales volume. I'd love to know what kind of uptick in sales they might have at the lower priced 2023's. Might give an idea how much pricing power they may have, if any. Hopefully as more hit the road it will peak more customer interest. It is a lot nicer looking than a lot of other EV's out there. Don't expect a good Operating P&L for quite a while. ....
In the UK, this non-bankruptcy route to repay the debt over a longer fixed period is known as a Company Voluntary Arrangement (CVA)
PAY DAY LOAN 😂
Your the only RUclipsr I look forward to watching for updates on Fisker Automotives and the stock. First off, I was excited from day one several years back when I heard about Henrik coming out with the Ocean SUV. I thought it was a beautiful EV. Immediately told myself to make sure to invest in them. I never got a chance. But now here I am, bought in a few weeks back and kept buying. I think the Ocean SUV is well designed and built. My wife and I would love to buy one. Would be our first EV. I agree with you. They are fighting for their lives and I think they are trying to survive this. Henrik has poured his blood and tears into this company and the Ocean SUV. I think he is not going down without a fight. I hope they can restructure and work things out with the note holder. Fight another day as you said. I'm praying for a miracle. God bless.
Thanks for the wonderful compliment.
Me too!!!
For Fisker Inc info this is the place to be...Not Adam's Everything is Distorted or a Lie ...only one dealership in the US nonsense..LoL.
@@2023gainerI think Adam lost money on the stock like the majority of us and he kind of became a villain and bias and omitting a lot of information that came from the last 8k
@@Sergio-lw5zn Adam owns 2 Tesla's and only obtained the Ocean to make videos and then dispose of it.
Thanks for keeping us posted. I picked up my Fisker Ocean One this weeekend. Loving it and struggle to see what all the hate is about. Granted I have OS 2.0 1/2, so I have never tried previous software.
I appreciate you posting.
Thanks for keeping on top of everything, sir. You are definitely the go-to source for all things Fisker.
Thanks 👍🤝
Let's Bring the Volume this week and close above 10 cents. Already over halfway there. FSRN... Fisker leading the EV sector and most of the tech sector in Gains... Thumbs Up video and positive comments....and SHARE on other platforms.
Great vid!!! 10k Just been released!
Could mean there is a deal based on these numbers,..
OMG , can you explain please, what does it mean???????? Now please
Thanks your posts are very helpful
Glad you like them!
Thanks
Pure Coincidence that Fisker 10- K released this morning...the same day as Tesla earnings....??.. I Love It ...Will we be visiting Tesla RUclips videos today/ tonight..?? Hit the LIKE...here.
I don't understand; is it good news or bad news? Also, the Bankruptcy is still on the table of it away? Please explain?
Well, another rumor is out that Stellaris could buy out?. But you are doing a great job by being objective and plain honest, the Scandinavian way, it's about following facts as real data that give a true clarity, really appreciate it, Tom (Danish immigrant in the US now, I was close to become a clay modeller at Fisker Inc. about 7 years ago now, a dream job as a former Lego Master Builder/designer) The link is from Germany: ruclips.net/video/aH-4sfzuUsY/видео.html
"Our cash and cash equivalents balance further reduced to $53.9 million of unrestricted and $11.2 million of restricted at April 16, 2024."
I wonder whether that number already considers the revenue from the fire sale... hope it does not!
Can you please share your thoughts about just released FSR 10k?
Thanks for your good thoughts. I read something that Stellantis may be interested. I still think this would be an excellent opportunity for Apple to accomplish what they started some time ago but never finished. However it goes, I am proud to be on board - good luck to you and all.
I think the extension was granted because the holder of the note knows that if the company goes bankrupt now, despite having priority, they’re not going to recoup their investment. Besides existing inventory, Fisker really has no assets to speak of; no factories, no tools, no equipment, no cash, no accounts receivable, no brand equity. Henrik likely promised an incoming injection of capital (hence the three million, possibly sourced from a friend, family, or proceeds from sale of his house), and agreed to a bare bones budget and a CRO as terms of the extension. It all seems rather bleak, but I think the appointment of a restructuring officer is a positive; it gives them a last chance to make it or break it… and another chance for a company in distress can’t be a bad thing.
My views of the need of the back up CRO. There are likely conditions to the restructuring process which maybe off limits eg changes to the management team ie Geeta that the CRO may not be agreeable to and that the backup CRO is more accomodating.
Form 10k out . Did we get a deal ? Why would they file 10k if they want to file bk ?
Sorry, but I don't see how bankruptcy benefits the note holder. Creditors do not push for this unless they are sure they can get their money back, or (in this case) Fisker has enough assets or income for bankruptcy to be worth it. Sounds like the note holder knows this and therefore is open to other arrangements for debt repayment. Otherwise, why grant an extension?
I understood there are talks with Stellantis. Curious
You are a light fire in the sea of false news! Thank you so much 👍
I appreciate that
How many oceans have been produced before production was stopped ? I can’t figure this out
Approx 12,000. That was in a German Video of the production at Magna of the Ocean ..the VIN numbers were at 12,000. Over 10,000 produced in 2023.
@@2023gainer 12,000 at let’s say $40,000 each , puts Fisker at $480 million revenue. Unlikely chapter 11, reorganization perhaps more likely … 🤔
@@highlandbeachbum2196and with magna styr owning the warranty claims. It's less money out the door for fisker 💪💪💵💵💵 organic rebirth NYSE 💵💵💵
12k total with around 4k to 5k already sold
@@matthewspry4217 Sold 4,900 in 2023... another 1,300 in Jan / Feb..March sales not yet reported. April could be best month ever due to discounts and dealerships.
Latest news : Fisker may seek bankruptcy protection in 30 days if unable to meet debt obligations
Could you please 🙏 consider it in your today's video? I believe Henrik trying to save the company.
Fisker went up 17%. What time was the 8k release?
After hours
A late surge last hr with huge volume... Somebody always knows something....one was a 10 million shares buy.?
@@2023gainer nah, just shorters went out due to high risk of squeeze 😊
Question for the @ocean1 ...if fisker is going out of business than why new dealers are sigining ..??
One glaring point missing IMHO. Notice the restructuring does not include any statement of restarting production. Although I hope the company survives. All statements of the new appointments and budgets etc only leads to the benefit of the note holder clawing as much of its investment back. This is a controlled exit strategy from the note holder unfortunately. Any investor incl the note holder would not want to spook the market until they are out. Hope does not replace business fundamentals I'm afraid.
Production restart a separate issue that involves the contract with dealerships and funds to pay Magna. That's probably the reason this offer has an expiration date.?
13-week budget is to stop Geeta’s spending extravaganza
FISKER @ $1 buys me an ocean extreme 💪💵💪💵💪💵 come on Fisker organic rebirth NYSE 💵💵
The bankruptcy stuff I'm not well versed in but I actually have the paperwork to purchase my Extreme sitting in my inbox. Putting the investor stuff aside, what does this mean for a potential Ocean owner if I move forward?
Growing Dealership network to repair/ service and sell Oceans. You're in better shape than us risk taking investors IMO.
Thanks. I was thinking it would mean the end and I would be on my own for service, repairs, etc.
If Fisker goes BK, and it's chapter 7, you would lose any warranty. If it's chapter 11, warranty would almost certainly continue.
Sir can you please make a video on 10k ..its out
You have mentioned that if FISKER is sold to any new entity, we, as retail investors, will have a problem ⚠️ could you please explain it in detail?
Not exactly. We can be sold and be fine. Where the problem comes in is if we get parted out in a chapter 11 or 7 scenario
@@Ocean1_FSR What would be going on if we got parted? For instance, if I have 10K shares? Will I get nothing?
Video on 10-K ???
I doubt it. Everything hinges on the next few days and weeks.
@Ocean1 I am sure you are or will be working on a new video. So, allow me to say two things:
1) these guys saying that Fisker has no assets... Jesus. They simply do not understand the difference between tangible and intangible assets.
Fisker has HUGE intangible assets, and those are the company itself AND the car. Hundreds of million dollars have been invested in the creation and execution of Fisker Ocean. Once the software is reliable and, make no mistake, it will be, the car will be a huge success. That scenario is worth billions of dollars (american dollars - not zimbabwe dollars!). Fisker Inc, as it is, is a steal! Let alone after software overhaul that will guarantee a one of a kind experience for EV's enthusiasts.
2) now that the 10K has been filled, do you think Fisker Inc. stands a chance to revive the loan that was on the table last March, 15th?
No idea
John D DiDonato appointed CRO by notes holder
GREAT NEWS🎉
??
We need a video for 10K please 🙏
I have no interest in doing that. Everything in the 10k is now over four months old. I seriously doubt we could learn much from it that could help us either way.
Please let me know if the release of 10K is a good sign. And the possibility of bankruptcy still there?
@@abaza.ibrahim having the 10k on file is absolutely a good thing. It won't affect BK or success in either way. Remember, the 10k just goes thru December 31st of 2023.
@@Ocean1_FSR anyway, I will be waiting for your next video, stay safe our mentor 📼
Index to financial statements part 1 , I just copy and paste here one small part of the 10k
“Our first model, the all-electric Fisker Ocean, has already garnered numerous awards for its design. As of April 16, 2024, the Company has delivered over 6,400 Oceans.”
So this is updated and that is it bad news since they only sold that amount?Correct me if I’m wrong, thank you for all the information you have gave us!
Magna is laying off 500 workers in Austria because they will not be making more Fiskers. company is dead and the car is unfortunately as dead as all previous Fiskers. Great car, terrible, terrible leadership.
I believe the second CRO will take over Thursday at midnight and start his process of liquidation. This appears to be the note holder playing hard ball and has come to their conclusion that this goes to the next level. I could be wrong but we shall see. I do not think there is a deal the note holder can accept by the current CRO. I personally don’t see this as anything positive but who knows…let’s hope it works out.
It sure feels like Henrik and Geeta have been sidelined. The noteholder and the first CRO will be calling the shots now and their primary objective will be to maximize recovery for the noteholder and they basically only have a few days to put things in place. Failing that, they will switch CRO horses which I would assume launches the BK filing. Should know in 48 hours!
I am little confused: are we far from bankruptcy, or are we heading to bankruptcy? Could you please explain it?
Geeta failed with this toxic investor and the failed filings. She should be barred from ever holding a C-level position again.
Solution - announce that Geeta is out
This looks like chapter 11 to me. I sold my shares and took my losses.
More likely out of court restructuring if the noteholder rejects the offer. Already down to only 343 million shares. ... nearly 2 billion authorized to give more to lenders if needed.
I agree all this sounds like a BK I hope fisker is able to stay alive with different leadership