Reuters EV startup Fisker warned on Thursday it might not be able to continue as a going concern and its shares tumbled 35 after the stock market closed.

Fisker said it would cut its workforce by about 15 and added it was in talks with a large automaker for a potential investment and joint development partnership. It did not disclose the name of the automaker or financials of the potential deal.

The company has struggled to sell its flagship Ocean electric SUV after high interest rates have led to a slowdown in demand. Current resources were insufficient to cover the next 12 months, Fisker said. In addition to talks with the large automaker, Fisker said it was in talks with a debt holder about a potential investment. Fisker said it aims to deliver between 20,000 and 22,000 Ocean vehicles in 2024. Without additional financing, the company said it might be forced to reduce production of Ocean, decrease investments, scale back operations and cut jobs further.

Fisker39;s commentary followed disappointing production forecasts from larger peers Rivian and Lucid as high borrowing costs have soured consumer sentiment and sharply slowed demand for EVs that are typically more expensive than gasolinepowered vehicles.

2023 was a challenging year for Fisker, including delays with suppliers and other issues that prevented us from delivering the Ocean SUV as quickly as we had expected, CEO Henrik Fisker said.

The company has been grappling with delivering vehicles to customers….