Fisker EV Startup Halts Production Amid Challenges

Fisker, an EV startup, has paused production of its Ocean SUV for six weeks due to financial struggles and has secured $150 million in investments.

[{"selector":"#anim-5e30aeb6-e75e-428a-b841-ac7c0a58a72f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(57.77138167696098%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2300,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] The company recently announced a 15% workforce reduction, consulted restructuring advisers for bankruptcy planning, and expressed concerns about its survival.

[{"selector":"#anim-2b0ec2e3-2ae4-42cb-9c9c-23d186eac030 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(8.410466492541477%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The $150 million funding, received in four instalments, aims to stave off bankruptcy temporarily.

[{"selector":"#anim-fd9c5c0f-8010-4dc3-9997-ecbfa904e0b6 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(51.80921058161396%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] At the same time, Fisker seeks a partnership with a giant automaker, rumoured to be Nissan.

[{"selector":"#anim-c879bb65-34ea-4f21-a26e-4b2e5ee4477a [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(45.839356560876695%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2300,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Fisker's contracted manufacturer, Magna in Austria, has produced 1,000 Ocean SUVs this year.

[{"selector":"#anim-5fdaba01-e1c5-44ea-b6e5-f41a1580e1bc [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-54.73684218059528%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2300,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Still, production is halting to adjust inventory levels amid a slowing EV market.

[{"selector":"#anim-17939bb2-1090-46d7-8c4f-060e921235c9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-53.78289480837124%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2300,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Fisker reported selling 1,300 Ocean SUVs in the first 2.5 months of 2024 but has an excess inventory of 4,700 vehicles.

[{"selector":"#anim-61a1fe8a-7c1a-4d69-b9e8-e4973fbaacd1 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-47.36328126242068%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2300,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] The company is negotiating a significant investment or partnership to develop EV platforms and expand manufacturing to North America.

[{"selector":"#anim-d24266dc-7878-4942-8d8f-589b6e21a138 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(29.95518081628431%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Changes in tax credit rules and disqualifying vehicles made outside North America or with certain foreign materials have negatively impacted Fisker.

[{"selector":"#anim-a1dd01ed-af47-4d25-bd80-3ff974f4f190 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-35.8646432155095%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Fisker raised the $150 million through convertible notes, a financial instrument allowing investment -

[{"selector":"#anim-a431db69-9067-4f5b-94d0-7b0ac0f44b02 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-49.682565825868316%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] conversion into shares, reflecting the company's stock price decline from over $12 two years ago to $0.16.

[{"selector":"#anim-f5481030-59a6-4162-acd3-fbbed695d153 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(8.080616935489132%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Audi reveals new q6 e-tron suv 2025 Watch More