Updated March 18th, 2024 at 18:33 IST

Fisker to raise $150 mn in fresh funds, halts EV production for six months

In January, Fisker reported that no units of its Ocean SUVs were produced, while Magna produced approximately 1,000 vehicles in between February 1 and March 15.

Reported by: Business Desk
Fisker Ocean | Image:Fisker.com
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Fisker halts EV production: Fisker on Monday announced that it will halt production of its electric vehicles for a period of six weeks and seek to raise up to $150 million in funding through the sale of convertible notes. This decision comes as the startup faces challenges related to cash flow and subdued demand for its cars.

During January, Fisker reported that no units of its Ocean SUVs were produced, while its manufacturing partner Magna produced approximately 1,000 vehicles between February 1 and March 15.

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The senior secured convertible notes, with a 10 per cent original issue discount, aim to generate gross proceeds of up to $150 million, according to Fisker.

Additionally, Fisker reiterated its ongoing discussions with a major automaker regarding a potential transaction, without disclosing the identity of the company. Earlier this month, media reports stated that Nissan was in advanced talks to invest in Fisker, potentially providing vital financial support to the struggling electric vehicle startup.

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In February, Fisker expressed uncertainty about its ability to sustain operations and postponed investments in future projects until it secured a partnership with an automaker.

Moreover, reports surfaced last week indicating that Fisker has enlisted restructuring advisers to explore the possibility of a bankruptcy filing, as revealed by media reports.

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(With Reuters inputs)

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Published March 18th, 2024 at 18:33 IST