Fisker's Strategic Pause and Fundraising Efforts amid Financial Challenges

Fisker, an electric vehicle startup, is facing a challenging period marked by a six-week production pause of its Ocean SUV, financial struggles, and efforts to secure additional capital The production halt aims to realign inventory levels, as the company reported having built about 1,000 Ocean SUVs, with 4,700 vehicles in inventory valued at $200 million Despite delivering around 1,300 vehicles, Fisker experienced a cash crunch, with only $121 million in cash and cash equivalents remaining as of March 15th. Consequently, the company failed to make an interest payment and suffered a significant stock value drop, putting it at risk of delisting from the NYSE Looking to raise funds, Fisker has negotiated a $150 million financing commitment from an existing investor and is also trying to raise an equivalent amount through the sale of convertible notes In addition, Fisker engaged in restructuring, which entailed laying off 15% of its workforce and hiring restructuring advisers. Amid these developments, Fisker is in active discussions with a major automaker, potentially Nissan, for a vital transaction that might include investment, joint EV platform development, and North American manufacturing These strategic initiatives and potential partnerships are critical as the company strives to stabilize its financial standing and continue its presence in the competitive EV sector, where it ranks 13th in the US market.