EV automaker Fisker halts production amid cash crunch

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Fisker Inc., a prominent player in the electric vehicle (EV) industry, has announced a temporary halt to its production. The EV manufacturer is reportedly taking this step to manage its inventory and circumvent potential bankruptcy.

 

Fisker’s decision comes at a time when the company is grappling with financial constraints. As of March 15th, the company had a cash reserve of just $121 million. To navigate through this cash crunch, Fisker plans to raise up to $150 million by selling convertible notes. This move is seen as a strategic step to ensure the company’s survival in the competitive EV market.

 

The production pause is expected to last for six weeks. During this period, Fisker aims to sell down its supply of already-built EVs. The company currently has about 4,700 vehicles in inventory, valued at more than $200 million.

 

Despite the challenges, Fisker remains optimistic about its future. The company is reportedly in talks with a large automaker, rumored to be Nissan, about a potential investment and joint development partnership. This partnership could provide the much-needed boost to Fisker’s operations and help it regain its footing in the EV market. Earlier this month, the company had just laid off 15% of staff.

 

The unfolding scenario at Fisker Inc. underscores the volatility and competitiveness of the EV industry. It serves as a reminder that innovation and technological prowess must be complemented with sound financial management for sustainable growth.

 

As we watch this space for further developments, one can’t help but wonder: How will Fisker’s strategic moves shape its future in the EV market? What are your thoughts on this? Share your views in the comments below.

 

 

 

Read more:

• https://www.bloomberg.com/news/articles/2024-03-18/fisker-stops-production-and-warns-it-may-need-to-seek-bankruptcy
• https://techcrunch.com/2024/03/18/fisker-production-pause-going-concern-cash-raise/
• https://www.reuters.com/business/autos-transportation/ev-startup-fisker-sell-up-1667-mln-senior-secured-convertible-notes-2024-03-18/

 

 

Image: Eric Broder Van Dyke | Dreamstime.com