Fisker is in trouble. The electric vehicle startup announced earlier this month that it didn't have enough money to make it to December. The hope was that another company would swoop in and save it from eventual bankruptcy—but those talks have fallen apart.
According to regulatory paperwork filed with the US Securities and Exchange Commission yesterday—as first reported by Reuters—Fisker wasn't able to strike a deal with potential suitors. "The large automaker" involved in initial talks "terminated the negotiations." Fisker was reportedly in discussions with up to five automakers.
One of the biggest names attached to a potential Fisker investment was Nissan—a brand eager to get more EVs on the road—although that was never officially confirmed. According to an earlier report from Reuters, Nissan's biggest interest was the electric Alaska pickup, with a reported $400 million on the table toward production of the truck at one of Fisker's US plants.
The Fisker Alaska debuted last year in concept form promising 340 miles of range in the US and a $45,000 starting price. The range-topping dual-motor, all-wheel-drive model reportedly had 550 horsepower while the base version had 275 horsepower. It was expected to go on sale in the US sometime this year.
Fisker is now forced to look for alternate options to stay afloat. The document notes that the company "continues to evaluate strategic alternatives.” That could include business restructurings in court or stock buybacks. Speaking of—Fisker’s stock dropped 28 percent on the day of the announcement and trading was halted. The New York Stock Exchange will soon delist the stock entirely.
Thus far, Fisker has reduced its workforce by 15 percent in an attempt to cut costs. Many of those jobs were in sales as the company switches from direct-to-consumer sales to a traditional dealer model. The company has reportedly signed 13 dealer partners in North America and Europe, with an ambitious plan to deliver around 20,000 Ocean SUVs worldwide in 2024.
We’ll see where the next few months take Fisker, but the future doesn’t look promising.
