Car Manufacturer Fisker Temporarily Halts Operations, Seeking Financial Recovery and Support from Original Equipment Manufacturers (OEMs)
In a recent announcement, Fisker Inc. (NYSE: FSR) has revealed plans to pause production for six weeks, starting from the week of March 18, 2024. This move aims to align inventory levels and progress strategic and financing initiatives.
As of March 15, 2024, Fisker has produced approximately 1,000 vehicles. Out of these, around 1,300 have been delivered globally. The company's US registrations reached an impressive 640 in January 2024, surpassing Toyota and ranking 13 among EV-selling brands in the US, according to S&P Mobility data.
Fisker is currently in negotiations with a large automaker, Ford, for a potential transaction. The details of this potential deal have not been disclosed, but it may include investment, joint development of electric vehicle platforms, and North America manufacturing. The closing of any potential transaction would be subject to the completion of due diligence and the negotiation and execution of appropriate definitive agreements.
Fisker has secured a financing commitment from an existing investor, offering up to $150 million in gross proceeds. The financing is structured in four tranches and is subject to certain conditions, including the filing of Fisker's 2023 Form 10-K. The specific terms and conditions of the financing have not been disclosed.
As of March 15, 2024, Fisker has approximately 4,700 vehicles in its inventory, including vehicles from 2023 and 2024 production. The estimated completed vehicle value for this inventory is in excess of $200 million.
Fisker's mission remains clear: to create the world's most emotional and sustainable electric vehicles. The company has filed a Form 8-K with the US Securities and Exchange Commission, providing additional disclosures regarding these developments.
The production pause and the potential transaction with Ford mark significant steps in Fisker's journey towards becoming a major player in the electric vehicle market. As these events unfold, Fisker continues to strive for innovation, sustainability, and the creation of vehicles that appeal to a wide audience.
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