Fisker Ocean production stops for six weeks as funding talks continue
Fisker says around 1000 Oceans have been produced so far this year
EV firm secures $150m from an existing investor but rescue talks continue with a large car maker, said to be Nissan
Fisher is pausing production of the Ocean SUV for six weeks as it looks to secure crucial financial backing, amid doubts over its ability to continue operating.
The move comes as the EV firm announces some $150 million in funding from an existing investor, who remains nameless.
The money will be provided in the form of convertible notes, which are subject to interest upon repayment, and is "subject to certain conditions", including Fisker filing a detailed financial report (known in the US as Form 10-K) for the 2023 financial year.
The funding will be allocated in four tranches.
Fisker said it remains in talks with a "large auto maker" over a financial deal, which could take the form of pure investment or a strategic development or production partnership.
It has still not named this manufacturer, but Nissan is widely reported to be in talks regarding a potential $400m investment into Fisker.
It's understood that as part of this deal, Nissan would have access to the platform that underpins the Fisker Alaska and would build the compact pick-up truck alongside its own related model in North America.
While these talks continue, production of the Ocean at Magna Steyr's factory in Graz, Austria, will be put on hold for six weeks to allow Fisker to "align inventory levels and progress strategic and financing initiatives".
Fisker said around 1000 Oceans were produced between 1 January and 15 March and it delivered around 1300 units. There are allegedly some 4700 in its inventory, claimed to worth more than $200m.
Fisker recently paused development of its affordable compact EV, the Pear hatchback, having made a loss of $463.6m during the fourth quarter of 2023.
The company is currently focusing its remaining cash reserves on ramping up production of the Ocean, as well as rolling out further software updates for the car.
It produced 10,193 Oceans and delivered 4929 across 12 countries in 2023 and expects to deliver between 20,000 and 22,000 in 2024. It sold 144 in the UK in January.
“We are not planning to start external expenditure on our next projects until we have a strategic OEM [manufacturer] partnership in place," said company boss Henrik Fisker previously.
Work continues on the Alaska, but chief financial officer Geeta Gupta-Fisker said its development depends on the successful tie-up with the car maker.
“Any programmes which are beyond the Ocean would only incur expenses if there's a strategic collaboration," she said.
Pear prototypes were planned to hit the road later this year, ahead of the first customer cars being handed over at the “very end” of 2025, Fisker said earlier this year.