Fisker tumbles 34% on warning; CEO hopes to close financing deal with OEM ‘as soon as possible’

Fisker (FSR) unloaded a cache of bad news during its Q4 earnings report yesterday, shaking investors and Wall Street analysts.

Fisker reported that given its financial condition, evolving dealership sales approach, and challenging EV market, it has “substantial doubt about its ability to continue as a going concern” when the company files its official financial statements for 2023. Fisker also said it would reduce its headcount by 15%.

Fisker said it had $396 million in cash at the end of Q4, though $70 million of that is restricted. Fisker said it is in talks with a current note-holder about making an additional investment in the company and that it’s negotiating with “a large automaker for a potential transaction which could include an investment in Fisker, joint development of one or more electric vehicle platforms, and North America manufacturing.”

Reuters reported on Friday afternoon that Fisker was in preliminary talks with Nissan for a $400 million cash injection, with Nissan getting access to Fisker’s upcoming truck platform.

In an interview with Yahoo Finance, Fisker CEO and chairman Henrik Fisker said talks were advanced with an automaker, though he wouldn’t confirm or deny that it was Nissan.

“What we have said is we are [in] negotiation with an OEM [original equipment manufacturers] for development of electric vehicles and US manufacturing as well as an investment,” Fisker said. “We started talking to several OEMs I think over six months ago, so we obviously have a lot done a lot of work already, so I hope this deal will close as soon as possible that we are working on.”

While talks of a cash infusion and strategic partnership with an established automaker are welcome news, it wasn’t enough to end doubts about Fisker’s precarious condition….