Fisker, the California-based electric vehicle (EV) start-up, has found a turning point in its financial stock saga. An unnamed auto company has exited major stock deals, leaving the company’s future unknown.
Fisker stock deals collapse
Fisker’s newsroom released a statement last week, saying the company is “continuing discussions with a major automaker for a potential transaction to develop electric vehicle platforms and manufacture in the United States.”
Reuters reported in early March that the unnamed investor was Nissan. However, it’s been a turbulent time for Fisker, as one of the company’s flagship vehicles was butchered in a YouTube review by Marcus Brownlee, a popular car reviewer. The review was titled “This is the worst car I have ever reviewed.”
The reviews led to a messy saga that unfortunately left Fisker with some battle scars. However, the company did little to help the situation, as a person describing himself as a Fisker engineer allegedly caused a viral video to be generated from a recorded phone call that Fisker was unaware of.
This is in light of a funding commitment from an “existing investor that has provided up to $150 million in gross proceeds. The financing is being provided by the holder of the company’s convertible bonds dated 2025 and will be arranged in four tranches. The financing is subject to certain conditions, including the filing of Fisker’s 2023 Form 10-K,” the release said.
Fisker filed with the SEC for a six-week pause in production to “align inventory levels and advance strategic and financial initiatives.” Fisker shares are also down 97% over the past year, meaning a delisting from the New York Stock Exchange is looming, as no stock can be below $1.
As of March 15, 2024, the automaker had built 1,000 electric vehicles and delivered 1,3500 vehicles globally in the same time frame. The company also has a completed inventory of 4,700 vehicles, with an estimated value of $200 million.
It remains to be seen whether Fisker can find another possible equity investor, but the road ahead appears difficult for the sustainable automaker.
Featured image credit: Kindel Media; Pexels
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