Fisker Inc. is in talks with Nissan Motor Co., according to sources familiar with the subject. The electric vehicle maker is looking for a solution to its financial issues, which have threatened its future.
The development comes a day after CEO Henrik Fisker announced his eponymous company is contemplating a capital infusion from a competitor carmaker. He also issued a going concern caution. It’s the latest evidence of trouble in an electric vehicle market plagued by slowed growth and uncertainty about consumer demand.
Fisker, which expects to slash 15% of its personnel, disclosed weaker-than-expected profit results Thursday, citing production challenges, technological glitches, and criticism from short sellers. EV manufacturers of all sizes are likewise experiencing an industry-wide slowdown in sales growth as customer demand declines.
According to Reuters, Nissan plans to invest up to $400 million in Fisker’s vehicle chassis and construct a pickup at one of its US assembly lines starting in 2026.
Fisker’s shares, which had fallen as much as 48% in early trading, recovered after news of a possible Nissan rescue. The stock fell 34% in regular New York trade, reaching a record low of 48 cents. It fell 76% last year and is trading significantly below its 2021 peak.
The company stated on Thursday that its present capital may not be sufficient to sustain it for the next 12 months without fresh funding. It reported $325.5 million in cash and equivalents as of December 31, considerably below Bloomberg’s average analyst expectation of $502.3 million.
Fisker stated that the capital issues raise “substantial doubt about its ability to continue as a going concern.”
Fisker estimates that its vehicle and parts stockpiles total around $500 million, with current sales producing more cash.
It reported fourth-quarter sales of $200.1 million, which fell short of analyst expectations of $272.9 million. The company expects to deliver between 20,000 and 22,000 EVs this year. It delivered 4,929 in all of 2023.