production pause

Fisker announced a six-week pause in electric vehicle production and plans to raise up to 0 million through the sale of convertible notes after missing an interest payment due to a cash crunch. The company produced no Ocean SUVs in January, but approximately 1,000 vehicles were manufactured by Magna’s Austrian unit between February 1 and March 15. Fisker delivered about 1,300 vehicles in 2024, with an inventory value exceeding 0 million. The convertible notes, being sold to CVI Investments via Heights Capital Management, have a 10% original issue discount. Fisker opted not to make a .4 million interest payment on March 15 for some 2026-due convertible notes, citing the use of a 30-day grace period to discuss capital structure with investors. As of the last report, Fisker had 0.9 million in cash and equivalents, down from 5.9 million at the end of the previous year. The company is in discussions with a major automaker for a potential deal, with Nissan reported as being in advanced talks for a possible investment. Fisker has shifted its sales strategy to rely more on dealerships and has paused investments in future projects pending a partnership with an automaker, citing doubts about its ongoing viability.