Fisker Halts Production, Seeks $150M to Avert Cash Crisis
Electric vehicle maker Fisker is facing financial challenges. It aims to raise $150 million and has paused production for six weeks. Cash reserves have dwindled, and there's doubt about its future. A potential deal with Nissan is rumoured.
Fisker's cash balance has plummeted from $395.9 million at the end of 2023 to $120.9 million as of March 22, 2024. The company missed an $8.4 million interest payment but has a 30-day grace period. Fisker has acknowledged substantial doubt about its ability to continue operating.
The company plans to raise up to $150 million by selling convertible notes to improve its cash app. It has also announced a temporary halt in vehicle production for six weeks to align inventory levels and progress strategic initiatives. Fisker produced about 1,000 vehicles and delivered about 1,300 in 2024 so far.
Fisker is seeking a strategic partnership with a major automaker. Reuters reports that the company is close to a deal with Nissan, although no specific negotiations are currently known. Fisker previously announced a shift from direct-to-consumer sales to selling through dealers.
Fisker's financial struggles are evident, with cash reserves dwindling and production paused. A potential partnership with Nissan could provide relief, but details are yet to be confirmed. The company is actively seeking a strategic alliance to secure its future.
