EV Startup Fisker’s Future Is Looking Even Bleaker

Negotiations with a potential partner have fallen through

Fisker Ocean
Fisker is facing an uncertain future.

Earlier this month, EV manufacturer Fisker released an earnings report that raised several questions about the company’s long-term future. (The phrase “Substantial Doubt About Fisker’s Ability to Continue as a Going Concern” showed up, for one thing.) Still, the company took as optimistic a stance as possible under the circumstances, noting that they were seeking a partnership with an established automaker and felt good about their shift to a dealership model.

Today, those grounds for optimism are looking a little less grounded. Reuters reported (via Autoblog) that the company’s attempts to partner with another automaker had fallen through, and that trading its stock had been paused. As MarketWatch reported earlier today, the company’s stock price has fallen 85% in the last month.

The identity of the company Fisker was in talks with is unknown — though Reuters reported recently that Fisker and Nissan were in talks — but the automaker in question appears to have called off the deal. “Following such termination, the company continues to evaluate strategic alternatives,” Fisker notified the SEC, according to MarketWatch. Reuters reports that Fisker is seeking to undergo a reverse stock split next month.

Losing the planned partnership with an established automaker hurts Fisker in several ways. There’s the most obvious one, which is to say that the partnership in question simply isn’t happening. Those negotiations were also key to the company getting $150 million, as TechCrunch’s Sean O’Kane reported.

O’Kane observed that Fisker is hoping the investor who’d pledged $150 million will “waive that condition.” If they don’t, it could compound Fisker’s distressed situation even more — and potentially herald the end of the road for the company.

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