Fisker pauses production, gains funding commitment amidst financial woes

Fisker will pause production of its electric vehicles (EVs) for six weeks, and the company also says it has received a financial commitment of up to $150 million amidst financial concerns.

On Monday, the EV maker said it will sell convertible notes at a 10 percent discount to one of its existing investors, generating up to $150 million, according to Reuters. The notes are being sold to CVI Investments, through Heights Capital Management, as detailed in an 8-K filing with the Securities and Exchange Commission (SEC). Fisker also says it has delivered around 1,300 EVs so far this year.

#BusinessUpdate We have received a financing commitment of up to $150 million. In addition to this update, we have delivered approximately 1,300 vehicles so far in 2024.

See the Form 8-K Fisker filed with the SEC for more information here: https://t.co/F6T90czEFy

— Fisker Inc. (@FiskerInc) March 18, 2024

The automaker also says it’s taking advantage of a 30-day grace period after it missed an $8.4 million interest payment on March 15, although the company says it has enough liquidity. Instead, Fisker says it hopes to hopes to take the time to discuss its capital structure with investors.

On Friday, the company’s cash, cash equivalents, and restricted cash were down to $120.9 million from its previous level of $395.9 million ending 2023. The automaker has also been facing potential delisting from the stock market, due to its shares dropping below $1, and it’s undergoing an investigation from the National Highway Traffic Safety Administration (NHTSA).

The announcement comes after Fisker delayed the filing of its 10-K form with the SEC last month, going on to lay off around 15 percent of its staff.

Last week, reports also suggested that Fisker had hired restructuring advisors to potentially help with a bankruptcy filing, though the EV maker had also already been considering other financing options, according to statements made last month.

Fisker didn’t produce any Ocean SUVs in January, though its manufacturing partner Magna produced roughly 1,000 vehicles from February 1 to March 15. In January, Fisker noted that it had thousands of unsold Ocean units produced last year that it was looking to sell in the first quarter of the year.

MKBHD says the Fisker Ocean is the ‘worst car’ he’s ever reviewed

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