Yahoo Autos Fisker Pauses Production for Six Weeks, Awaiting New Investment
Fisker, an electric vehicle startup manufacturer and maker of the Ocean SUV (above), has announced a six-week pause in production starting the week of March 18, 2024.
According to a release by the manufacturer, the pause will help the company "align inventory levels and progress strategic and financing initiatives."
The company is continuing negotiations with an unnamed "large automaker" to develop and manufacture EV platforms within the U.S.
After a grim earnings call that included the announcement of mass layoffs in late February, Fisker, the electric vehicle startup manufacturer, announced a six-week pause in production starting today, March 18. According to a release issued by Fisker, the pause will help the manufacturer "align inventory levels and progress strategic and financing initiatives."
Despite the pause in production, the automaker is continuing negotiations with an unnamed "large automaker" to generate a strategic partnership between brands. The partnership could materialize as joint development of an EV platform or include manufacturing deals within the United States. Fisker confirmed that closing any negotiation will require the company to satisfy conditions described as "completion of due diligence and negotiation and execution of appropriate definitive agreements."
The company also announced a new wave of financing and a commitment from an existing investor. Similar to the "large automaker" negotiations, the new financing rests on Fisker's filing the 2023 Form 10-K, which is required by the U.S. Securities and Exchange Commission. According to Fisker, the new wave of financing is worth up to $150 million in gross proceeds. The money will be released to the automaker in four tranches and is being provided by the holder of the company's 2025-dated convertible notes (securities). The Wall Street Journal reported late Monday that the company's stock dropped 16 percent during the day and is down this year so far by about 90 percent.
The company reported 2023 production of 10,193 vehicles but delivered only 4929 vehicles in the same period. Meanwhile, so far in 2024, Fisker said it built "approximately 1000" vehicles from January 1 through March 15 and delivered about 1300. The EV startup had previously announced three future products for 2025 and 2026: the Alaska pickup, the under-$40,000 Pear SUV, and a halo sports car called the Ronin.
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