Fisker Inc. is facing a dire financial situation and is working on plans to secure more funding.
Starting this week, EV maker Fisker announced it would suspend production for six weeks, in order to “align inventory levels and progress strategic and financing incentives.” According to its statement Monday, the company reiterated it is continuing negotiations with a “large automaker” — supposedly Nissan — to develop EV platforms and manufacture vehicles in the United States.
Fisker also announce it secured a financing commitment to the tune of $150 million from an existing investor, contingent upon the firm’s ability to meet certain conditions. Those conditions include Fisker’s Form 10-K with the Securities and Exchange Commission (SEC), providing a complete overview of the company’s current financial condition. If all goes well, the money will make its way to the automaker in four tranches.
As far as the ongoing negotiations, the prospective partnership with the as-yet unnamed automaker could result in the joint development of one or several electric vehicle platforms. Part of the deal would include actually setting up manufacturing operations, supposedly to build the Alaska pickup truck, instead of outsourcing production to Austria’s Magna Steyr, as it currently does with the Ocean SUV.
Fisker Inc. reported a total 2023 production run of 10,193 vehicles. In that same period, it actually delivered slightly less than half that run (4,929 vehicles), meaning the company is sitting on approximately 4,700 vehicles in its current inventory, including 2024 production. So far this year, Fisker built “approximately 1,000 vehicles” through March 15. It estimates the total value of vehicles it’s already built to be “in excess of $200 million”, though it has not completed a Net Realizable Value (NRV) analysis to definitively confirm that estimate.
From January 1 through March 15, Fisker also delivered about 1,300 vehicles.
It previously announced three new models through 2026 including the Alaska as well as the smaller Pear SUV and the Ronin sports car. Considering the company’s grim situation, however, we may well see those projects punted to a later point, depending on whether the pending investment and partnership actually play out as Fisker hopes.
According to a report late last week, Fisker Inc. has retained counsel and hired a financial advisor to navigate Chapter 11 reorganization proceedings. Again, that may prove unnecessary depending on the outcome of this latest news and the six-week production pause, but we will publish another update when we know more.
