In a surprising move that could shape the future of the electric vehicle (EV) market, Fisker Inc. is reportedly in talks with Japan’s renowned automaker, Nissan Motor Co. According to sources, the discussions are centered on a potential lifeline for Fisker, which is currently suffering from liquidity challenges that have raised serious questions about its survival.
Revving Up for a Rescue
The news comes hot on the heels of a statement by Henrik Fisker, the Chief Executive Officer of the company, who revealed that Fisker Inc. is considering a capital infusion from a rival automaker. The move represents the latest episode in an industry-wide narrative characterized by declining growth and waning consumer demand.
Adding to Fisker’s woes, the company revealed plans to cut 15% of its workforce following weaker-than-expected earnings results. The disappointing performance has been attributed to production issues, technical glitches, and criticism from short sellers.
Nissan’s Potential $400M Investment
As part of the potential rescue mission, Nissan is considering an investment of as much as $400 million in Fisker’s truck platform. The investment would also support the production of a planned pickup, slated to start in 2026 at one of Nissan’s US assembly plants.
News of the possible investment by Nissan provided a much-needed respite for Fisker’s shares, which had plummeted as much as 48% in early trading. Despite the cushioning effect, Fisker’s stock closed down 34% in regular New York trading, hitting a record low of 48 cents.
Fisker’s Financial Woes
In a statement released on Thursday, Fisker revealed that its current capital might not suffice to keep the company afloat over the next 12 months without additional funds. As of December 31, the company’s cash and equivalents stood at a disappointing $325.5 million, significantly lower than the $502.3 million average analyst estimates compiled by Bloomberg.
The company’s financial predicament has raised “substantial doubt about its ability to continue as a going concern.” However, Fisker estimates that it has approximately $500 million split between its vehicle and parts inventories, with current sales generating more cash.
As it stands, Fisker’s fourth-quarter sales amounted to $200.1 million, falling short of the estimated $272.9 million. The company has projected deliveries of between 20,000 and 22,000 EVs this year, a significant increase from the 4,929 deliveries made in 2023.
As we watch this saga unfold, it’s clear that the future of Fisker – and the broader EV industry – hangs in the balance. The potential involvement of Nissan, a veritable titan in the automotive world, could provide a lifeline that not only saves Fisker but also has significant implications for the electric vehicle sector at large. AutoNews provides further insights into this developing situation.
