Fisker (NASDAQ:FSR) stock is in full focus after Reuters reported that it was in “advanced talks” with Nissan (OTCMKTS:NSANY) for an investment worth more than $400 million into its truck platform. The potential deal would also allow Nissan to build Fisker’s upcoming Alaska electric pickup truck beginning in 2026 at one of its two U.S. assembly plants in Mississippi and Tennessee. Fisker unveiled the Alaska last year with an expected production date of early 2025.
According to sources close to the matter, the deal term sheet is ready and the deal could be finalized as early as this month, pending due diligence.
When contacted by Reuters, a Fisker spokesperson noted that the company does not comment on speculation. However, the company announced last week in its preliminary earnings that it was in talks with an undisclosed, large automaker concerning an investment, a platform joint development or manufacturing.
FSR Stock: Fisker Eyes Deal with Nissan
In its earnings, Fisker also revealed that it expects to have “substantial doubt about its ability to continue as a going concern” once it submits all of its financial statements for 2023. While it expects its capital expenditures and working capital requirements to decrease in the coming years, its business plan is ultimately dependent on its transition to a dealer partner model from a direct-to-consumer model. Fisker announced that it would layoff about 15% of its staff as it transitions its model.
“Furthermore, to the extent Fisker’s current resources are insufficient to satisfy its requirements over the next 12 months, the company will need to seek additional equity or debt financing, and there can be no assurance that Fisker will be successful in these efforts,” added Fisker.
The electric vehicle (EV) company also disclosed that it was in talks with an existing noteholder concerning an additional investment.
Fisker reported fourth-quarter revenue of $200.1 million compared to $71.8 million in Q3 2023. The growth was driven by the delivery 3,818 vehicles while production totaled 4,789 vehicles. For 2023, deliveries and production totaled 4,929 vehicles and 10,193 vehicles, respectively. Fisker has guided for between 20,000 and 22,000 deliveries this year.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
