Fisker Stops Production for Six Weeks
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Fisker Inc. is pausing production for the next six weeks as the electric vehicle maker looks to rein in inventory and avoid possibly having to file for bankruptcy.
The company didn’t make a required interest payment of about $8.4 million last week on its unsecured convertible notes due in 2026, according to a regulatory filing March 18. Fisker warned it may not be able to meet obligations to service its debt and “could need to seek protection under applicable bankruptcy laws.”
Fisker shares fell as much as 14% shortly after the start of regular trading. The stock had plummeted 90% this year through last week’s close.
Fisker also said that it plans to raise as much as $150 million through a financing deal with the holder of its 2025-dated convertible notes. The Los Angeles-based EV maker didn’t identify the existing investor and said the funding will be organized in four tranches and subject to certain conditions.
The disclosures expound on the dire state of Fisker, which warned late last month that there was substantial doubt about its ability to stay in business. The company has said it will cut 15% of its workforce after struggling with production issues, software glitches and short-seller criticism.
Fisker said it remains in negotiations with an unidentified large automaker about a potential investment and joint development partnership. Bloomberg reported earlier this month that the company was in talks with Japan’s Nissan Motor Co., citing people familiar with the matter.
In its statement, Fisker said it has about 4,700 vehicles in inventory worth more than $200 million. It’s pausing production in Graz, Austria, starting this week to sell down its supply of already-built EVs.
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