“Electric vehicle maker seeks capital infusion as it faces liquidity challenges and production issues.”

Fisker, the troubled electric vehicle (EV) manufacturer, is in discussions with Nissan Motor for a potential capital infusion that could reach up to US$400 million. This comes as the company grapples with significant liquidity challenges and production hurdles that have raised doubts about its future.

The talks, revealed on March 1, 2024, suggest that Nissan may invest in Fisker’s truck platform, including plans to build a planned pickup truck at one of its US assembly plants starting in 2026. This potential deal follows a warning issued by Fisker CEO Henrik Fisker, who recently acknowledged the company’s ongoing financial struggles and flagged concerns about its survival without further funding.

The announcement comes on the heels of Fisker’s disappointing earnings report on March 1, which showed weaker-than-expected financial results, including a forecast of a 15% workforce reduction. The company is facing growing technical glitches, production delays, and negative attention from short sellers, while the broader EV market continues to slow down as consumer demand wanes.

Fisker’s stock plunged by as much as 48% in early trading after the announcement, but the news of potential help from Nissan helped stem the losses. The stock closed down 34% at a record low of US$0.48, reflecting a dramatic fall of 76% in 2023, and continuing a steep decline since its 2021 peak.

Despite its cash reserves of US$325.5 million as of December 31, 2023, Fisker warned that its current capital may not be sufficient to sustain operations for the next 12 months without additional funding, well below the US$502.3 million average analysts had expected.