Fisker Pauses Production for Six Weeks, Awaiting New Investment

• Fisker, an electrical automobile startup producer and maker of the Ocean SUV (above), has introduced a six-week pause in manufacturing beginning the week of March 18, 2024.
• Based on a launch by the producer, the pause will assist the corporate “align stock ranges and progress strategic and financing initiatives.”
• The corporate is continuous negotiations with an unnamed “massive automaker” to develop and manufacture EV platforms inside the U.S.

After a grim earnings name that included the announcement of mass layoffs in late February, Fisker, the electrical automobile startup producer, introduced a six-week pause in manufacturing beginning at this time, March 18. Based on a launch issued by Fisker, the pause will assist the producer “align stock ranges and progress strategic and financing initiatives.”

Regardless of the pause in manufacturing, the automaker is continuous negotiations with an unnamed “massive automaker” to generate a strategic partnership between manufacturers. The partnership may materialize as joint improvement of an EV platform or embrace manufacturing offers inside the US. Fisker confirmed that closing any negotiation would require the corporate to fulfill situations described as “completion of due diligence and negotiation and execution of applicable definitive agreements.”

The corporate additionally introduced a brand new wave of financing and a dedication from an current investor. Much like the “massive automaker” negotiations, the brand new financing rests on Fisker’s submitting the 2023 Kind 10-Ok, which is required by the U.S. Securities and Change Fee. Based on Fisker, the brand new wave of financing is price as much as $150 million in gross proceeds. The cash might be launched to the automaker in 4 tranches and is being offered by the holder of the corporate’s 2025-dated convertible notes (securities). The Wall Road Journal reported late Monday that the corporate’s inventory dropped 16 % through the day and is down this 12 months to this point by about 90 %.

The corporate reported 2023 manufacturing of 10,193 autos however delivered solely 4929 autos in the identical interval. In the meantime, to this point in 2024, Fisker mentioned it constructed “roughly 1000” autos from January 1 via March 15 and delivered about 1300. The EV startup had beforehand introduced three future merchandise for 2025 and 2026: the Alaska pickup, the under-$40,000 Pear SUV, and a halo sports activities automobile referred to as the Ronin.

Jack Fitzgerald’s love for automobiles stems from his as but unshakable dependancy to Method 1.
After a short stint as a detailer for an area dealership group in school, he knew he wanted a extra everlasting strategy to drive all the brand new automobiles he couldn’t afford and determined to pursue a profession in auto writing. By hounding his school professors on the College of Wisconsin-Milwaukee, he was capable of journey Wisconsin looking for out tales within the auto world earlier than touchdown his dream job at Automobile and Driver. His new objective is to delay the inevitable demise of his 2010 Volkswagen Golf.