Startup in trouble
E-car manufacturer Fisker stops production – interest is not paid
March 18, 2024, 5:17 p.m
Listen to article
This audio version was artificially generated. More info | Send feedback
There is enough money in the till – but interest on a bond will not be paid for the time being. The electric car manufacturer Fisker wants to gain time for negotiations. Meanwhile, fresh money comes from an investment fund. According to reports, negotiations are underway with a car manufacturer.
The cash-strapped US electric car startup Fisker is stopping production of its Ocean model. Production at contract manufacturer Magna in Austria will be interrupted for six weeks, the company said. Now the inventory levels should be adjusted. The company can also concentrate on topics such as strategy and financing. Fisker previously owed $8.4 million in interest on convertible notes. The company said it deliberately decided to default in order to gain time for negotiations with investors.
It was said that there was actually enough money available for the interest. However, the company’s cash balance had shrunk to $120.9 million as of Friday – less than a third of what it had on hand at the end of last year. New convertible bonds with a volume of up to $150 million, which Fisker sold at a discount to the Polish investment fund CVI Investment, are now expected to bring fresh money into the coffers, according to mandatory documents filed with the US Securities and Exchange Commission (SEC).
The shares continued to decline on the stock market. The decline was more than 16 percent. Already on Friday there had been a discount of almost 50 percent after trading with reports of an allegedly prepared insolvency. As recently as mid-September, one share was still trading at 6.55 euros. It is currently worth 14 cents on the stock market.
Fisker has been in financial trouble for some time and is preparing for possible bankruptcy, according to a report. It is now said that negotiations are currently underway with a car manufacturer about a collaboration. According to insiders, this is Nissan from Japan; It was recently said that an agreement could be signed later this month.
The company, which was founded by the Danish car designer Henrik Fisker, has long been aware that selling the vehicles is proving more difficult than originally planned. Added to this is the overall cooling demand for electric cars.