“Rescue Funds Endangered as Fisker Misses Out on Promising Nissan Deal”

The negotiations between Fisker and a large automaker — reported to be Nissan — over a potential investment and collaboration have been terminated, a development that puts a separate near-term rescue funding effort in danger. Fisker revealed in a Monday morning regulatory filing that the automaker terminated the negotiations on March 22. Fisker said in the filing that it will ask the unnamed investor to waive the closing condition. In February, Fisker laid of 15% of its staff (around 200 people) and last week reported having just $121 million in the bank. Fisker had held talks with other automakers, including Mazda, but only Nissan recently remained at the table.

The negotiations between electric car startup Fisker and a major automaker have come to an abrupt halt, putting the company’s short-term rescue funding at risk. According to a recent regulatory filing, Fisker revealed that the talks with the automaker, rumored to be Nissan, were terminated on March 22nd without explanation.

Fisker, which had previously announced a potential $150 million investment and collaboration with the automaker, is now seeking to waive the closing condition with the unnamed investor. This news caused a 28% drop in Fisker’s stock and a temporary halt in trading.

This is just the latest in a string of challenges for the struggling electric vehicle startup. According to internal documents, Fisker has been struggling to meet its own sales goals for its flagship Ocean SUV and has faced quality issues with the few cars that have been delivered. In January, the company shifted away from a direct sales model in order to improve sales.

In February, Fisker was forced to lay off 15% of its staff (around 200 people) and recently reported having only $121 million in cash reserves. The company has also paused production and warned investors that it may not survive the year without a fresh injection of funds. Although Fisker had previously held talks with other automakers, including Mazda, only Nissan remained at the negotiating table.

Fisker stated in the filing that it is now exploring other “strategic alternatives” in the absence of the potential tie-up with Nissan. These options include “in court or out of court restructurings, capital market transactions, repurchases, exchanges, or refinancing of existing debt, issuing new equity, selling assets and businesses, and/or other strategic alliances.”

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Zara Khan

Zara Khan is a seasoned investigative journalist with a focus on social justice issues. She has won numerous awards for her groundbreaking reporting and has a reputation for fearlessly exposing wrongdoing.

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