Fisker Inc. is in talks with Japan’s Nissan Motor Co., individuals acquainted with the matter stated Friday, as the electrical automobile maker seeks a lifeline from liquidity challenges which have put its survival doubtful.
The event comes a day after Chief Government Officer Henrik Fisker stated his eponymous firm is discussing a capital infusion from a rival carmaker and issued a going-concern warning. It’s the newest signal of stress in an electrical automobile market affected by slowing development and questions over client demand.
Fisker, which plans to chop 15% of its workforce, reported weaker-than-expected earnings outcomes Thursday because it struggles with production issues, technical glitches and criticism from brief sellers. EV makers of all sizes are additionally grappling with an industrywide slowdown in gross sales development as client demand wanes.
Nissan could make investments as a lot as $400 million in Fisker’s truck platform and constructing a deliberate pickup beginning in 2026 at considered one of its US meeting crops, Reuters reported earlier Friday.
Phrase of a possible rescue from Nissan stemmed losses in Fisker’s shares, which had plunged as a lot as 48% in early buying and selling. The inventory closed down 34% in common New York buying and selling to a document low of 48 cents. It had fallen 76% final 12 months and trades nicely under its 2021 peak.
The corporate stated in a statement Thursday that its present capital is probably not sufficient to maintain it over the following 12 months with out extra funds. It reported money and equivalents of $325.5 million as of Dec. 31, nicely under a $502.3 million common analyst estimates compiled by Bloomberg.
With the capital challenges, Fisker stated, there may be “substantial doubt about its ability to continue as a going concern.”
Fisker estimates it has about $500 million cut up between its automobile and elements inventories, with present gross sales producing extra cash.
It recorded $200.1 million in fourth-quarter gross sales, in need of analyst estimates for $272.9 million. The corporate projected deliveries of between 20,000 and 22,000 EVs this 12 months. It delivered 4,929 for all of 2023.
— With help from Chester Dawson
