Fisker Seeks New Partnership Before Facing Bankruptcy

Fisker’s financial state may lead to closure within a year, CEO reports.

According to a recent report by Reuters, it has been revealed that Fisker is currently in negotiations with Nissan, as the exclusive automaker. The two companies are reportedly in advanced discussions and are aiming to reach a final agreement by the end of this month.

Reportedly, Nissan plans to allocate over $400 million towards Fisker’s Alaskan electric pickup platform. This investment would allow the Japanese car manufacturer to manufacture the vehicle at one of its US-based factories. Moreover, Nissan intends to create an electric truck using the same underlying structure.

Fisker’s future appears bleak, as the company recently disclosed that it may face bankruptcy within the next year due to a staggering net loss of $463 million in 2023. However, there is still a glimmer of hope. The company has revealed that it is currently in talks with a “large automaker,” which could potentially bring in more funding, opportunities for joint vehicle development, and the possibility of manufacturing in North America.

Fisker did not reveal the identity of the automaker it is currently in talks with. According to Fisker’s official statement, the potential collaborator has a manufacturing presence in North America. However, the realization of this partnership is still far from certain.

According to CEO Henrik Fisker, “The closing of any transaction would be subject to satisfaction of important conditions, including completion of due diligence and negotiation and execution of appropriate definitive agreements.”

Fisker’s 2023 year-end financial report reveals concerning details about the automaker’s outlook. According to the report, the company lacks sufficient funds to sustain operations for the following 12 months. This raises serious concerns about the company’s future viability.

According to the announcement, “The company will need to pursue further equity or debt financing, and there is no guarantee that Fisker will achieve success in these endeavors.”

Fisker is implementing cost-saving measures by downsizing its staff by 15 percent. The majority of these employees will be in sales strategy positions, as the company transitions from a direct-to-consumer sales approach, similar to Tesla, to a more conventional dealership model commonly used by traditional automakers.

Fisker has entered into agreements with 13 dealer partners in North America and Europe. The company states that it has received more than 250 expressions of interest in these regions for potential dealer locations. The car manufacturer anticipates delivering 20,000 to 22,000 Oceans globally by the year 2024.

Fisker has recently enlisted the services of Magna-Steyr to manufacture their highly anticipated Ocean electric SUV. Although a total of 10,193 units were initially planned for production in 2023, only 4,929 were actually delivered in that year. Despite this delay, customers have already paid for the majority of the undelivered vehicles with the assurance that they will be fulfilled by the automaker in the first quarter of 2024.

According to our colleagues at InsideEVs, if Fisker is able to secure the necessary funds, the company’s main focus will be on the development of their Alaska electric pickup. Henrik Fisker, the company’s CEO, stated, “We see that the biggest opportunity for growth and profitability, and expediting the launch, lies with the Alaska. Therefore, our internal team is currently dedicated to the Alaska project.”

Sources: Fisker, Wall Street Journal