Fisker’s negotiations with “major automaker” break down, NYSE to delist FSR stock [Updated]

Fisker announced that negotiations with a “major automaker” over potential investment have collapsed. Fisker stock (FSR) has been suspended from trading, and the NYSE is moving toward delisting the stock.

Things have been tough for Fisker in recent weeks. Shares have fallen sharply from already low levels after a fourth quarter in which the company saw strong deliveries growth but said there was “substantial doubt” that it could continue as a going concern without major outside investment. did.

And last week, the company defaulted on interest payments and suspended EV production while trying to sell some of its roughly $530 million worth of inventory (to which it is looking to use existing dealerships). Fisker vehicles are manufactured on a contract basis by the veteran manufacturer Magna Steyr.

However, there were rumors that Nissan was considering a partnership with Fisker, so Fisker might find the outside investment it was looking for.

In August, Fisker unveiled the Alaska Concept, a midsize pickup truck that appears to fit a similar market niche to the Nissan Frontier. If Nissan was looking for a relatively inexpensive company to acquire or invest in to electrify its Frontier segment, this could be a way to jump-start its vehicle program.

Although Nissan was the main target of the rumors, Fisker never named the “major automaker” in question. Nissan separately announced its new EV business plan on Monday, but there was no mention of Fisker.

Negotiations with “major automakers” were boosting Fisker stock, which had fallen sharply in recent days. Earlier this month, it was reported that Mr. Fisker had hired an outside consultant to discuss the company’s options, including possible bankruptcy. That caused the stock to drop more than 50%, but it rebounded significantly the day after Fisker reiterated that he was still negotiating with major automakers.

However, Fisker announced today that talks with major automakers for a potential deal have collapsed. The stock price fell 30% before the trading halt, and at the time it was noted that the announcement was pending. We now know that the announcement came from the New York Stock Exchange, which is moving toward delisting the stock, but last month the New York Stock Exchange warned that it was a possibility. was.

Due to the stock’s delisting, Fisker stock (FSR) will no longer be available on the NYSE, but may be available through the OTC market. Fisker’s upcoming 2025 and 2026 convertible bonds will also be affected, with Reuters reporting that Fisker will have to buy back the 2026 notes and default on the 2025 notes.

Electrek’s view

Some have blamed Fisker’s recent troubles on widely seen negative reviews of the title by technology critic MKBHD, but the concerns shared by MKBHD were not unique. I shared many of the same concerns when I got the car for a 24-hour review in November (albeit with a less negative title), as did other journalists I spoke to after that review. We shared similar concerns.

The general opinion I heard from every automotive journalist I spoke to about the car, except for one or two, was that it was completely unfinished. There may be something after doing a lot of work on the software, but the flaws are significant and most of us don’t have a big bullet point of needed improvements before the car meets a good baseline. I have a list.

Fisker’s upcoming concepts, especially Fisker PEAR, look very promising, and the company’s focus on sustainability is much more serious than many other companies in the auto industry. The company’s contract manufacturing business plan is particularly interesting for startups looking to operate on an “asset-light” basis, where they don’t need billions or tens of billions to speed up production.

But these recent issues make it much less likely that Fisker will bring future cars to market.