Fisker’s negotiations with a major automaker were unsuccessful. Several hundred million euros of investment thus disappear, while Fisker is cruelly lacking in cash to survive.
The bad news is snowballing at the manufacturer Fisker. In a few hours, the situation of the young electric car brand has deteriorated further. The Fisker teams may have recently launched a crisis communication inviting the media not to talk about bankruptcy too prematurely, but it is becoming difficult not to envisage this outcome for the company.
Fisker’s survival was mainly due to discussions with another car manufacturer which could have invested several hundred million euros in the company. Unfortunately, on March 25, it was announced that the current negotiations have not been conclusive and that there will be no partnership agreement. An announcement followed by immediate repercussions on the stock market, Fisker shares saw their value fall before simply being delisted from the New York Stock Exchange, as reported by Bloomberg.
Fisker is urgently looking for other investors
The search for investors has become a necessary step for all new players who have launched into electric cars. This is when the strongest ones move on to the next stage thanks to the confidence of investors, while others fail like the Sono Motors, Lightyear, Byton, etc. projects.
Tesla has also gone through these situations where the company’s coffers were empty and Elon Musk found the funds necessary to continue the adventure at the last minute. Henrik Fisker currently finds himself up against the wall. He urgently needs to raise several hundred million euros to pay his debts and be able to continue the company’s activity for at least a few more months.
The failure of negotiations with Nissan, the manufacturer believed to be in discussions with Fisker for a partnership, is not the only setback. Another investor had conditioned its support of 150 million for Fisker on the conclusion of a partnership agreement with a major manufacturer. Fisker must now convince him to invest despite everything.
An update on Fisker’s current situation
To compensate for the failure of direct sales, Fisker decided to structure its activity in Europe through resellers. This is the case in France, where Fisker now has a headquarters and a sales point. This unfortunately comes much too late compared to the manufacturer’s situation which has deteriorated so quickly that it does not bode well.
Fisker also suspended production of the Fisker Ocean in mid-March. The brand still finds itself currently with stocks of unsold models. Models which were particularly expensive for Fisker, because the company buys at a high price from Magna, its supplier which assembles its Ocean, all the examples which come off the assembly line.
Unfortunately, with an electronic system of which certain functions have not yet been developed, it seems difficult to succeed in convincing buyers to take out their checkbook for vehicles priced over €60,000 with an uncertain future. Even those who have reserved their Fisker Ocean are not honoring their reservations. Even if the company found significant investments, there would then be intense work necessary to rebuild the brand’s image due to poor strategic choices.
Another manufacturer to save it?
The association with a traditional manufacturer could have been a good alternative for Fisker. However, by publicly rejecting any alliance with a Chinese manufacturer, Fisker most certainly made a big mistake in the situation in which the company finds itself.
Which manufacturer could be interested in Fisker concepts especially adapted for the American market? Apart from Japanese manufacturers, who are far behind on electric vehicles, Fisker does not have much to offer compared to other American or European brands. All this seems like a dead end, but it is not impossible that Fisker will find a miraculous solution. Otherwise, the end of the story is unfortunately already known: a second failure for Fisker.
The Fisker story has not lacked twists and turns in recent weeks, so to stay connected to the latest news from the world of electric mobility, subscribe to our weekly Watt Else newsletter.
Do you want to know everything about the mobility of tomorrow, from electric cars to e-bikes? Subscribe now to our Watt Else newsletter!