EV startup Fisker has announced it will pause vehicle production for six weeks.
It is raising funds through a $150 million financing commitment from an existing investor, selling convertible notes after missing an interest payment.
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Fisker has produced approximately 1,000 vehicles in 2024 through to 15 March. It reports it has delivered approximately 1,300 globally in that same timeframe.
The firm says the pause in production will allow it to “align inventory levels and progress strategic and financing initiatives.”
In its most recent filing to the US Securities and Exchange Commission, Fisker said it did not make an $8.4 million interest payment on 15 March 2024 for convertible notes due 2026 because it “wanted to take “advantage of the [30-day] grace period to allow time for discussions with certain stakeholders in the Company’s capital structure to continue.”
In its SEC filing, it also addressed “substantial doubt about [its] ability to continue as a going concern.”
Earlier this week the firm said it it was in talks with a large automaker for a potential transaction, but the company was not named.
It comes after the Wall Street Journal reported the firm was preparing for a potential bankruptcy filing.
