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Struggling Fisker to receive a $400 million investment from Nissan

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Fisker Ocean Electric SUV
Credit: Autocar India

Due to Fisker’s financial difficulties, Nissan is allegedly in talks to invest USD 400 million, or around Rs 3,315 crore, in the luxury electric vehicle business. The development of Fisker’s low-cost compact electric vehicle, the Pear, has been put on hold. The company lost USD 463.6 million, or around Rs 3,840 crore, in the fourth quarter of 2023.

Fisker is actively looking for partnerships

In order to raise money or cut expenses, the company was looking to partner with another automaker, said CEO and founder Henrik Fisker. “Our company is in negotiations with a large automaker for a potential transaction,” he stated. “This could involve joint development of one or more electric vehicle platforms, manufacturing in North America, and investment in the company.”

According to recent reports from Bloomberg and Reuters, who cited unnamed sources with knowledge of the situation, Nissan is the company in issue. According to Reuters, Nissan is reportedly offering a $400 million cash infusion in exchange for access to the platform that powers the Fisker Alaska pickup vehicle. At one of its US-based facilities, Nissan would also manufacture the Alaska in addition to its own model, which shared the same architecture.

Fisker Ocean Electric
Credit: Kalinga TV

During the company’s earnings call on Thursday, the company’s chief financial officer, Geeta Gupta-Fisker, stated that Alaska’s future development hinged on a fruitful collaboration with an undisclosed automaker. Henrik had previously stated that Foxconn, a contract manufacturer with whom Fisker had previously negotiated about car manufacturing in North America, was not the “large automaker” with whom the business was in talks. According to Henrik, the negotiations essentially ended Fisker’s business with Foxconn.

He continued, “The company is currently concentrating its remaining cash reserves on rolling out additional software updates for the car and ramping up production of the Ocean SUV, which is being built by contract manufacturer Magna Steyr in Austria.” In 2023, it manufactured 10,193 Ocean SUVs and sent 4,929 of them to 12 different nations. In 2024, it projects to deliver 20,000–22,000 units.

“We do not intend to begin external funding on our upcoming projects until we have established a strategic OEM [manufacturer] partnership,” Henrik declared. The Fisker Alaska electric pickup truck is still being worked on, but Geeta stated that its progress is contingent upon the carmaker’s successful partnership. “Programs that extend beyond the ocean would only require financial outlays in the event of a strategic partnership,” the spokesperson stated.

According to Fisker’s earlier statement this year, the first customer cars will be delivered at the “very end” of 2025, with the pears prototypes expected to go on sale later this year.

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