Fisker (NYSE: FSR) stock plummeted by 28% during Monday’s early trading session following reports indicating the breakdown of discussions with a top automaker regarding a potential deal.
Reuters has reported that talks between Fisker, the electric vehicle (EV) startup, and a top automaker for a potential deal have collapsed. This development adds to the growing uncertainty surrounding the cash-strapped startup, which recently halted production of its electric vehicles (EVs).
The company, however, did not disclose the name of the automaker with which it was in talks. Consequently, trading in Fisker’s shares has been suspended pending an official announcement.
Fisker also has disclosed its inability to fulfill a closing condition related to its efforts to raise $150 million in funding via the sale of convertible notes, citing a missed interest payment.
In a separate announcement, Fisker revealed plans to seek shareholder approval for a proposal regarding a reverse stock split at an upcoming meeting scheduled for April 24. This move aims to ensure compliance with Nasdaq’s listing requirements.
Reuters Reports: Fisker-Nissan Investment Talks
Earlier reports from Reuters had suggested advanced discussions between Fisker and Nissan regarding a potential investment. However, Nissan’s recent announcement of a long-term business plan, including its EV strategy, indicated a broader search for partners in the United States, casting doubt on any imminent agreement with Fisker.
Raising capital has proven challenging for electric vehicle startups grappling with losses and minimal revenue streams as they strive to scale production and meet customer demands amid intense competition and economic headwinds.
Fisker’s shares have taken a considerable hit this year, plummeting by over 90% in value. The company flagged concerns about its ability to continue operating in February and suspended investments in future projects until securing a partnership with an automaker.
Earlier this year, Fisker shifted its business model to a dealer-partner arrangement after facing logistical hurdles that resulted in the delivery of less than half of the vehicles manufactured in 2023.
Fisker (NYSE: FSR) Stock Reaction
FSR stock plunged 28.17% to $0.09 at the time of publication. The traders have exchanged hands with 62,229,286 (62.22 million) shares compared to the average daily trading volume of 83.22 million.
Zabih Ullah is a seasoned finance writer with more than ten years of experience. He is highly skilled at analyzing market trends, decoding economic data, and providing insightful commentary on various financial topics. Driven by his curiosity, Zabih stays updated with the latest developments in the finance industry, ensuring that his readers receive timely and relevant news and analysis.
