 start-up, has encountered a twist in its finance share saga. An unnamed automotive company has stepped out of major share talks, leaving the...){kind=link}
Fisker, the California-based automotive electric vehicle (EV) start-up, has encountered a twist in its finance share saga. An unnamed automotive company has stepped out of major share talks, leaving the company’s future unknown.
Fisker’s share talks collapse
Fisker’s Newsroom released a statement last week, stating the company “is in continuing negotiations with a large automaker for a potential transaction to develop EV platforms and to manufacture in the US.”
Reuters reported in early March that the unnamed investor was Nissan. However, it has been a turbulent time for Fisker, as one of the company’s flagship vehicles was slaughtered in a YouTube review by Marcus Brownlee, a popular car reviewer. The review was titled “This is the Worst Car I’ve Ever Reviewed.”
The reviews led to a messy saga that has sadly left Fisker with a few battle scars. Still, the company did little to help the situation, as a person describing himself as a Fisker Engineer would cause a viral video to spawn from a recorded telephone call that Fisker had no knowledge of.
This was in light of a financing commitment from an “existing investor providing up to $150 million of gross proceeds. The financing is being provided by the holder of the company’s 2025-dated convertible notes and will be organized in four tranches. The financing is subject to certain conditions, including the filing of Fisker’s 2023 Form 10-K,” the release stated.
Fisker has filed with the SEC for a six-week pause in production to “align inventory levels and progress strategic and financing initiatives.” Fisker’s shares have also been down 97% over the past year — which means a de-listing from the New York Stock Exchange is looming, as no listings can be under $1.
As of March 15, 2024, the auto manufacturer had built 1,000 electric vehicles and delivered 1,3500 vehicles globally within the same timeframe. The company also has a completed inventory of 4,700 vehicles, valued at an estimated 200 million dollars.
It remains to be seen if Fisker can find another possible share investor, but the road ahead looks rocky for the sustainable car manufacturer.
Featured Image Credit: Kindel Media; Pexels
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