(Reuters) – Fisker Inc. said on Monday that talks for a potential deal with a major automaker have collapsed, amid heightened uncertainty for the cash-strapped startup that suspended electric vehicle production last week. .
The name of the automaker with which it is negotiating has not been disclosed, but trading in the company's shares has been suspended until an announcement is made.
Fisker also said it could not meet closing conditions related to its attempt to raise up to $150 million by selling convertible notes after missing interest payments.
Separately, Fisker announced that it will ask investors to vote on the proposed reverse stock split at its April 24 shareholder meeting in order to maintain compliance with Nasdaq listing standards.
Reuters reported earlier this month that Nissan Motor Co. was in talks to invest in the company, but earlier in the day the Japanese automaker held an event to announce its long-term business plan, including its EV strategy. , said: I was looking for a partner in the US.
Funding has been difficult for loss-making electric vehicle startups, which struggle to ramp up production and deliver to customers as they battle stiff competition and a tough economy, with little prospect of profit.
The company's stock price has plummeted this year, losing more than 90% of its value after the company warned of going concern risk in February and paused investment in future projects until it secured a partnership with an automaker.
Fisker pivoted to a dealer-partner model earlier this year after delivering less than half of the vehicles it produced in 2023 due to logistical issues.
(Reporting by Zaheer Kachwala and Akash Sriram in Bengaluru; Editing by Shilpi Majumdar and Arun Koyur)
