EV startup Fisker is preparing for a possible bankruptcy filing.

The Wall Street Journal reported the automaker has hired restructuring advisers to help with the potential filing.

It came after Fisker warned it was at risk of running out of money this year, following the posting of its preliminary Q4 and full year 2023 results.

It booked US$273m in sales last year but was over $1bn in debt.

In its results, it addressed “substantial doubt about... ability to continue as a going concern”.

It added: “[We expect] capital expenditures and working capital requirements to decrease during 2024 and beyond as [we] enter the second year of [production].

“Furthermore, to the extent [our] current resources are insufficient to satisfy its requirements over the next 12 months, the company will need to seek additional equity or debt financing, and there can be no assurance [we] will be successful in these efforts.”

Financial adviser FTI Consulting and law firm Davis Polk have been hired, according to the WSJ.