Fisker has hit a significant roadblock in its quest for financial stability. The automaker disclosed on Monday that its negotiations with a prominent automotive manufacturer for a potential investment have unfortunately ended without a deal.
This announcement has led to a temporary suspension of trading of Fisker’s stock (FSR) with the anticipation of further details on the company’s future to be released later today, according to Automotive News.
The past few months have been particularly tumultuous for Fisker. Earlier this year the company raised concerns about its ability to continue operations without securing significant external funding. This admission resulted in a sharp decline in the company’s stock price, which was already under pressure.
Further exacerbating Fisker’s financial woes, the company missed an interest payment last week and halted production of its electric vehicles (EVs). The aim was to reduce its inventory, valued at approximately $530 million, through sales at existing dealerships. Fisker’s production strategy relies on contract manufacturing with Magna Steyr, a seasoned player in the automotive industry.
The potential for outside investment had seemed promising, especially amidst speculations that Nissan was considering a partnership with Fisker.
Despite the buzz, Nissan, which was heavily rumored to be the “large automaker” in talks with Fisker, unveiled a new EV business plan without any mention of a partnership with Fisker. This omission was a clear indicator that the anticipated deal might not materialize.
The collapse of this critical investment discussion comes at a dire time for Fisker, which had seen a brief resurgence in its stock following the initial drop due to bankruptcy considerations. The company’s public acknowledgment of ongoing talks with a major automotive player had fueled investor optimism, but today’s announcement has dashed those hopes, sending Fisker’s shares tumbling by 30% before trading was paused.
