Fisk previously announced a six-week suspension of production from March 18, and also announced that it has received a financing commitment of 150 million US dollars from an existing investor.
Zhitong Finance learned that Fisk (FSR.US) previously announced that it will suspend production for six weeks from March 18 to adjust inventory levels and advance strategies and financing plans. The cash-strapped electric car maker is struggling to avoid bankruptcy to get capital to keep its business running. The company's stock price fell 15.6% on Monday. Shares have been plummeting since the company raised questions about continuing operations. The stock is down about 92% since the beginning of the year.
Fisk also announced that it has received a $150 million funding commitment from an existing investor. The financing will be provided by the holders of the company's convertible notes due in 2025 and will be carried out in four installments. The financing required meeting certain conditions, including submitting a deferred 2023 annual report and continuing negotiations with a major automaker on potential investment and manufacturing in North America.
Fisk is also continuing negotiations with a major car manufacturer on a potential deal, which could include investment in Fiske, joint development of one or more electric vehicle platforms, and production in North America. The completion of any transaction will depend on meeting important conditions, including completion of due diligence, negotiation, and execution of an appropriate final agreement.
“If we don't have access to capital when we need it, we may further scale back our operations,” Fisker said. It also warned that the company may not be able to pay its debts and may require bankruptcy protection.
Fisk went public through the acquisition of SPAC in 2020. As of March 15, Fiske had produced about 1,000 cars in 2024, delivered about 1,300 cars worldwide during the same period, and currently has an inventory of about 4,700 cars. According to S&P Mobile data, in January of this year, Fisk registered 640 vehicles in the US, surpassing Toyota (TM.US) and ranking 13th among brands selling electric vehicles in the US.
SA analyst The Asian Investor previously stated: “We have overestimated the demand for electric vehicles and underestimated how difficult it is for electric vehicle manufacturers to scale up production.” Fisk's last hope may come from investments from Nissan or other major automakers.
Fisk isn't the first electric vehicle startup to get into a financial crisis. Electric truck manufacturer NU RIDE (NRDE.US), formerly known as Lordstown Motors, and the British electric van manufacturer Arrival (ARVLF.US) have both filed for bankruptcy protection in recent months.