Fisker pauses production of the Fisker Ocean

US electric car manufacturer Fisker has stopped building its Ocean amid financial worries. It also announced that an existing investor has commited to up to $150 million of gross proceeds. However, the financing is subject to certain conditions.

Image: Fisker

Production will remain at a standstill for six weeks from 18 March to avoid a potential bankruptcy. The carmaker states that it wants to use the pause “to align inventory levels and progress strategic and financing initiatives.” The new convertible bonds with a volume of up to 150 million dollars, which Fisker has sold at a discount to the Polish investment fund CVI Investment, will provide fresh cash, according to mandatory filings with the US Securities and Exchange Commission (SEC).

That Fisker is facing increasing financial woes is not new. A few weeks ago, the company itself warned that it might not be able to continue operations. The Wall Street Journal reported last week that the carmaker was already preparing for a possible insolvency and even hired restructuring consultants to help with a potential bankruptcy filing.

Previously, Fisker had failed to pay interest totalling 8.4 million dollars on convertible bonds. The manufacturer then explained that it had deliberately decided to default in order to gain time for negotiations with investors.

In the current press release, Fisker again mentions that it is talking to a “large automaker” about a potential transaction. It would involve an investment in Fisker and “the joint development of one or more electric vehicle platforms, and North America manufacturing,” the US carmaker writes in its press release. However, the amount and which car manufacturer is involved have not been disclosed.

At the beginning of March, Reuters reported that Fisker is talking to Nissan about a possible investment. In return, Nissan could gain access to Fisker’s EV pickup platform. Talks were said to be at an advanced stage. However, a final deal is still up in the air. Just last week, Nissan signed a cooperation with Honda. The two carmakers will also collaborate on electric cars, introducing a joint powertrain, joint procurement, and developing a joint platform.

Fisker currently only sells the electric SUV Ocean. And it does not have its own production facilities and wants to be a lean design and development company. The Ocean is built at Magna in Graz, while Fisker has partnered with the contract manufacturer Foxconn for the announced Pear small car.

The carmaker says it produced 1,000 Fisker Ocean in 2024 through 15 March, delivering “approximately 1,300 globally in that same timeframe.” Moreover, it has an inventory of about 4,700 Fisker Ocean, including ones already produced in 2023.


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