Private Investors Fund Fisker for Next Hybrid Model image

Fisker announced private investors had offered the company over $100 million to solve the issues with the Karma and prepare for the second model.

This means that the automaker currently has more than $1.2 billion raised for its next projects, which include the Atlantic, the company’s second plug-in hybrid model, which will be offered in December.
The additional funding “is another major vote of confidence in Fisker’s pioneering technology and business model,” CEO Tony Posawatz said in the statement.

Fisker made the announcement after the Consumer Reports magazine criticized the $103,000 Karma’s reliability and design, saying that it won’t recommend anyone to buy this vehicle. The company had previously recalled Karmas due to flawed cooling fans and lithium ion batteries, which were provided by A123 Systems.

In 2009 the U.S. Energy Department offered Fisker a $529 million loan to be able to develop and build the Karma. In 2011 the automaker was cut off from one of the loans failing to meet profitably requirements linked to the loan. In February, Fisker announced its plans to use a close GM plant located in Wilmington, to build its cars, but the plan has been stalled since then.

The company didn’t name the investors, but it is known that Palo Alto Investors LLC and Kleiner Perkins Caufield & Byers venture capital firms have backed the automaker and actor Leonardo DiCaprio, who owns a Karma.