Fisker Automotive just got a $35 million boost toward matching its $529 million low-interest loan from the U.S. Department of Energy. So far this year, the Irvine, Calif., company has raised $189 million in equity financing to share the costs of its new Delaware manufacturing plant and help it launch its luxury hybrid model, the Karma.
Current policies dictate that government financing programs -- like the Advanced Technology Vehicles Manufacturing (ATVM) initiative that has benefited Fisker and its competitor Tesla Motors -- can only pay for up to 80 percent of proposed project costs. This means that all recipients are required to dig up the rest of the funding from private sources. The DOE money also can't be released until the supplemental funds are a sure thing.
Fisker previously brought in $115 million in capital in January, partially from A123Systems, the advanced battery company supplying lithium-ion units for the Karma and future Fisker vehicles. Now the company appears to have exceeded its goal of raising $175 million in its latest round of equity. Another entity called Fisker Holdings -- probably an arm of the company dedicated exclusively to raising funds -- reported to the SEC that it has banked $202 million of an anticipated $232.7 million round of equity, options and securities.
Basically, Fisker appears to have more than enough money to accomplish several milestones on its roadmap. In addition to launching the $88,000 Karma this year, the company is already working on a more affordable, practical line of vehicles under the banner of its "Project Nina." Right now, it plans to launch a plug-in sedan (to rival Tesla's Model S, perhaps), for under $40,000, by the end of next year.
About $359 million of the government financing will be applied toward this new line of vehicles.
Fisker has now raised upwards of $300 million in private capital since its inception in 2008. Its backers include Kleiner Perkins Caufield & Byers, Palo Alto Investors, Qatar Investment Authority, Eco-Drive Capital Partners and Ace Investments, in addition to A123.