Fisker has recently announced a significant financing boost and is on the brink of a promising partnership with a major automaker, according to a press release issued by the company.
The company has secured a financing commitment of up to $150 million from an existing investor, contingent upon certain conditions, including the filing of Fisker’s 2023 Form 10-K. This financing, organized in four tranches, is provided by the holder of the company’s 2025-dated convertible notes.
In addition to the financing, Fisker is engaged in ongoing talks with a major automaker regarding a potential deal. This deal could encompass an investment in Fisker, co-development of EV platforms, and manufacturing in North America. However, any agreement is subject to the completion of due diligence, negotiations, and the execution of definitive agreements.
As of March 15, 2024, Fisker has reported the production of approximately 1,000 vehicles and has delivered about 1,300 vehicles globally within the same period. Notably, the company’s U.S. registrations in January 2024 reached 640, surpassing Toyota (NYSE:TM) and placing it 13th among EV brands in the U.S. market, based on data from S&P Mobility reported by Automotive News.
With approximately 4,700 vehicles in inventory, including units from 2023 and those produced in 2024, Fisker estimates the value of its completed vehicle inventory to exceed $200 million as of March 15, 2024. However, the company has not conducted a net realizable value (NRV) analysis for 2024.
To adjust inventory levels and advance strategic and financial initiatives, Fisker will halt production for six weeks starting this week.
Earlier this month, Reuters reported that Nissan was in advanced talks to invest in Fisker in a deal that could act as a financial lifeline for the cash-strapped EV startup.
Fisker, which flagged substantial doubt about its ability to continue as a going concern in February, paused investments in future projects until it secured a partnership with an automaker. The company has hired restructuring advisers to assist with a possible bankruptcy filing, the Wall Street Journal reported last week, citing people familiar with the matter.
Fisker had a little over 5,000 unsold vehicles as of earning release a couple of weeks ago, for the period 12/31/23. This article says Fisker has built about 1,000 in 2024, and 4,700 available. Quick math – Fisker has sold about 1,300 Oceans in 2024.
Unlikely Fisker has sold anything since the going concern warning, and news about engaging a firm to restructure, so Fisker was selling about 650 a month in January & February.
If the bankruptcy risk wasn’t on the table, Fisker was tracking to sell roughly 7,800 in 2024. A far cry from the 20,000-22,000 Henrik Fisker forecasted.
Will see what the 10k says when filed. Nissan and Honda also in talks for collaboration. Hard to make a case of what value Fisker brings to the table. Nissan Ariya EV software is fully mature, and available now. The Fisker software needs multiple years to catch up.
Maybe the Fisker platform rebranded as the Nissan Alaska truck, with Nissan’s software? I don’t know. I’m watching, and assume all of my shares have zero value – they are not far from that now.
GLTA