It looks like Fisker Automotive may have some good karma after all. A new report says the electric car maker has been able to raise the $100 million needed to continue production of its Karma sedan and charge ahead with the development of the new Atlantic hatchback.
Fisker has had a rough summer – it recalled its six-figure Karma luxury sedan twice and saw some of its funding issued from the U.S. Department of Energy cut off. However, things may be looking up for the fledgling carmaker, as Bloomberg has reported that it has secured an additional $100 million is private funding.
The new round of funding must be a nice reprieve for Fisker, since just six weeks ago said that it needed $150 million to get its second car – the Atlantic – off the ground. Unlike the Finnish-built Karma, Fisker hopes to build the Atlantic in the U.S., potentially at the Delaware plant it purchased from General Motors during that company’s bankruptcy proceedings. Fisker has now raised around $1.2 billion in capital, but has had faced a rocky road with the recent recalls and the departure of two CEOs in the past year.
Unlike its direct competitor Tesla, Fisker is not currently looking on turning to a stock IPO to raise additional capital. Tesla CEO Elon Musk has previously slammed Fisker – both the company and its founder Henrik Fisker – for focusing too much on design and not enough on engineering. However, Musk’s strategy may not be paying off either: that company recently revealed that it’s going to miss its revenue targets due to a slow ramp-up of Model S production, and that its future fiscal estimates depend on the possibility of amending the terms of its Department of Energy loan.