Fisker Halts Production for Six Weeks, Awaiting New Investment

Fisker Halts Production for Six Weeks, Awaiting New Investment


  • Fisker, the pioneer of electric vehicles and maker of the Ocean SUV (above), has announced a six-week halt in production beginning the week of March 18, 2024.
  • According to the manufacturer’s release, the suspension will help the company “harmonize inventory levels and develop strategic strategies and financing.”
  • The company is in talks with an unnamed “supercar maker” to develop and manufacture EV platforms in the US.

After a disastrous earnings call that included the announcement of mass layoffs at the end of February, Fisker, the electric car maker, announced a six-week pause in production beginning today, March 18. According to a release issued by Fisker, the pause will help . the manufacturer “reconciles inventory levels and develops strategic and financing strategies.”

Despite the production halt, the automaker is continuing talks with an unnamed “major automaker” to form a strategic partnership between the brands. The partnership could be implemented as joint development of an EV platform or include manufacturing contracts in the United States. Fisker confirmed that closing any negotiations would require the company to meet conditions described as “completion of due diligence and negotiations and implementation of a definitive agreement.”

Fisker

The company also announced a new round of funding and a commitment from an existing investor. Similar to the “supercar manufacturers” talk, the new funding is contingent on Fisker filing a 2023 Form 10-K, which is required by the US Securities and Exchange Commission. According to Fisker, the new round of funding is worth up to $150 million in gross revenue. The money will be given to the car maker in four installments and is provided by the holder of the company’s 2025 convertible notes (securities). The The Wall Street Journal information Late Monday that company’s shares fell 16 percent during the day and are down this year so far by about 90 percent.

The company reported 2023 production of 10,193 vehicles but delivered only 4929 vehicles during that period. Meanwhile, so far in 2024, Fisker said it built “about 1,000 vehicles” from January 1 to March 15 and delivered about 1,300. The EV startup previously announced three future products for 2025 and 2026: the Alaskan pickup, under $ 40,000 Pear. SUV, and a halo sports car called the Ronin.

Headshot of Jack Fitzgerald

Jack Fitzgerald’s passion for cars stems from his still unwavering addiction to Formula 1.
After a short stint as an analyst for a local trade group in college, he knew he needed a more permanent way to drive the new cars he couldn’t afford and decided to pursue a career in automotive writing. By hunting down his college professors at the University of Wisconsin-Milwaukee, he was able to travel to Wisconsin in search of stories in the automotive world before landing his dream job there. Car and Driver. His new goal is to delay the demise of his 2010 Volkswagen Golf.