Fisker pauses production for 6 weeks
In August 2023, everything seemed to be going well at Fisker. The manufacturer was presenting 3 new products that it planned to introduce to the market over the coming years. However, it seems that behind the curtain everything was not so beautiful. Indeed, Fisker revealed a few weeks ago that it was experiencing serious financial difficulties, and that, without new short-term financing, the manufacturer’s future is uncertain. Moreover, we have just learned that the production ofOcean will be paused for 6 weeks, while the situation is analyzed.
A 6 week break
In a press release issued earlier this week, the manufacturer Fisker announced that it would pause all its production in order to align inventory levels and advance strategic and financial initiatives. It therefore goes without saying that a serious analysis will be carried out in the coming weeks within the company. For the moment, production of the Ocean, the only vehicle currently in production, will be stopped during this period.
Profitability is not on the agenda
In early March, Fisker said its current resources were insufficient to meet the company’s needs for the next 12 months. Furthermore, if the manufacturer fails to find new investors, it casts substantial doubt about its survival, given its financial situation.
Find a solution
At the time of writing, some rumors were circulating on the web suggesting that Nissan would be in talks with Fisker for a possible partnership. However, neither manufacturer has confirmed or commented on this information at this time. Only Fisker confirmed that he was discussing with a major manufacturer, without naming it.
At the moment, Fisker has announced that an existing investor has committed to providing financing of up to $150 million under certain conditions and in four tranches. In fact, this amount will be raised by selling convertible bonds of the investor in question.
The next few weeks will undoubtedly be decisive for the manufacturer Fisker which will try to find solutions to its financial problems. In any case, the future of this company remains uncertain, which does not reassure future buyers.
