Dive Brief:
- Fisker’s potential deal with a major automaker has fallen through, the electric vehicle startup said in a regulatory filing Friday, leaving the cash-strapped company’s future in doubt.
- The EV startup said the “large automaker with which the Company had been in negotiations for a potential transaction” terminated the talks after the market closed Friday.
- Fisker will continue “to evaluate strategic alternatives,” including court restructurings, the potential sale of assets and more, according to the filing.
Dive Insight:
Fisker had a tumultuous 2023, during which the automaker dealt with production delays, weak sales, high interest rates, labor shortages, and a lack of real estate for its retail stores.
Last week, the EV startup announced it would stop producing its Ocean SUV for six weeks and raise up to $150 million by selling convertible notes as it fights for survival.
In January, Fisker announced it would abandon its direct-to-consumer sales model and sell its vehicles through dealers in a last-ditch effort to juice sales and revenue.
But in February, less than two weeks after the New York Stock Exchange threatened to delist the company for failing to maintain a share price above $1, Fisker reported losing $762 million in 2023.
With its survival in question, Fisker announced it would seek a partnership with a major automaker and slash its staff by 15%. The next day, Reuters reported that Fisker was closing in on a deal with Nissan, which involved a $400 million investment and partnership to build electric pickup trucks.
The NYSE halted trades of the company’s stock shortly after the market opened Monday, after news of a potentially collapsed deal sent stocks tumbling.
