FISKER is in talks with Japan’s Nissan Motor, people familiar with the matter said on Friday (Mar 1), as the electric vehicle (EV) maker seeks a lifeline from liquidity challenges that have put its survival in doubt.
The development comes a day after chief executive Henrik Fisker said his eponymous company is discussing a capital infusion from a rival carmaker and issued a going-concern warning. It’s the latest sign of stress in an EV market plagued by slowing growth and questions over consumer demand.
Fisker, which plans to cut 15 per cent of its workforce, reported weaker-than-expected earnings results on Thursday as it struggles with production issues, technical glitches and criticism from short sellers. EV makers of all sizes are also grappling with an industrywide slowdown in sales growth as consumer demand wanes.
Nissan may invest as much as US$400 million in Fisker’s truck platform and building a planned pickup starting in 2026 at one of its US assembly plants, Reuters reported earlier on Friday.
Word of a potential rescue from Nissan stemmed losses in Fisker’s shares, which had plunged as much as 48 per cent in early trading. The stock closed down 34 per cent in regular New York trading to a record low of US$0.48. It had fallen 76 per cent last year and trades well below its 2021 peak.
The company said in a statement on Thursday that its current capital may not be enough to sustain it over the next 12 months without additional funds. It reported cash and equivalents of US$325.5 million as of Dec 31, well below a US$502.3 million average analyst estimates compiled by Bloomberg.
With the capital challenges, Fisker said, there is “substantial doubt about its ability to continue as a going concern”.
Fisker estimates it has about US$500 million split between its vehicle and parts inventories, with current sales generating more cash.
It recorded US$200.1 million in fourth-quarter sales, short of analyst estimates for US$272.9 million. The company projected deliveries of between 20,000 and 22,000 EVs this year. It delivered 4,929 for all of 2023. BLOOMBERG
