Nissan has been revealed because the potential savior of Fisker. The Japanese automaker is reportedly speaking with Fisker to spend money on the corporate and companion on electrical pickup vans.
Earlier at present, we reported on Fisker’s disastrous fourth-quarter outcomes exhibiting that the electrical automobile startup misplaced $400 million in 2023 and it now has lower than $400 million of money on arms.
The automaker needed to admit that it wouldn’t be capable of proceed operations previous subsequent yr with out a massive money injection.
It did reveal that it was speaking to a “massive automaker” about an funding that would save the corporate.
Now, Reuters reported that the automaker in query is Nissan:
Nissan is in superior talks to spend money on electrical automobile maker Fisker (FSR.N), in a deal that would present the Japanese automaker with entry to an electrical pickup truck whereas giving the struggling startup a monetary lifeline, in response to two individuals aware of the negotiations.
The deal would reportedly contain Nissan investing $400 million in Fisker. It could additionally contain Nissan constructing the Alaska pickup truck unveiled by Fisker final yr at one among its US crops.
On high of it, Nissan may use the Alaska platform to construct its personal electrical pickup truck.
Neither Nissan nor Fisker commented on the report.
Fisker’s inventory dropped by greater than 50% at present after the discharge of its earnings, however the inventory recovered a bit after the report that Nissan is contemplating investing.
The inventory at the moment trades at a valuation of $295 million.
Electrek’s Take
I’m undecided what to consider it. I’ve by no means been an enormous fan of Fisker, and I’ve warned individuals about investing within the firm earlier than.
If the report is true, I don’t know what Nissan sees on this. If they’re behind on growing electrical pickup vans, it is perhaps price it for them, however I believe that any important funding can be a takeover the corporate.
It’s now price lower than $300 million and that is perhaps a pretty funding as an organization that had $200 million in income final quarter within the rising EV market, however the seems are deceiving.
As I’ve highlighted earlier than, Fisker was determined in its earlier fundraising efforts and took massive convertible notes, which now add as much as $1.2 billion, in response to its final SEC submitting.
Presently, there’s simply no method Fisker can handle to pay that again and due to this fact, they’ll convert to inventory and drastically dilute it for present shareholders.
So I don’t see a great end result right here aside from Nissan selecting the entire firm up for affordable and accelerating its EV packages with it.
What do you assume? Tell us within the remark part beneath.
