Fisker recently disclosed a temporary halt in the production of its electric vehicles for six weeks and its intention to secure $150 million in funding by issuing convertible notes after failing to make an interest payment. During January, Fisker did not produce any of its Ocean SUVs, while approximately 1,000 vehicles were manufactured by Magna's Austrian unit from February 1 to March 15.
In 2024, Fisker managed to deliver around 1,300 vehicles, and the completed vehicle inventory's worth exceeded $200 million, according to the company's statements. The offering of senior secured convertible notes, with a 10% original issue discount, aims to raise proceeds of up to $150 million and is being acquired by CVI Investments, with the possibility of converting the debt into equity in Fisker.
Despite adequate liquidity, Fisker intentionally skipped an $8.4 million interest payment on convertible notes due in 2026 on March 15 to engage with investors regarding its capital structure during a 30-day grace period. The company's cash balance, including cash equivalents and restricted cash, declined to $120.9 million as of the latest report, significantly lower than the $395.9 million at the end of the previous year. Additionally, Fisker has been in discussions with a major automaker for a potential deal while facing uncertainties about its sustainability.