Fisker announces potential partnership with major automaker for EVs

Fisker in Talks with Unnamed Automaker for Investment and Development

Fisker, the electric vehicle (EV) manufacturer, recently announced that it is in talks with a large automaker for a potential investment, development of one or more EV platforms, and North American manufacturing. This news was reported in Fisker’s fourth-quarter 2023 earnings report, which also revealed a $463 million net loss for the quarter.

Production Challenges and Pivoting to a Dealer-Based Sales Model

Fisker has faced production challenges for its sole model, the Ocean electric SUV, which is currently being produced at a facility in Austria. Due to these challenges, deliveries of the Ocean have been delayed. In response, Fisker has begun pivoting to a dealer-based sales model to supplement its direct-sales efforts. The company has already signed up 13 dealers in North America, with additional expressions of interest from dealers in both North America and Europe.

Financial Outlook and Business Plan

Fisker’s business plan is highly dependent on the shift to a dealer-based sales model. The company may need to seek additional equity or debt financing in 2024 to support its operations and avoid reducing Ocean production. Without additional financing, Fisker may need to cut costs to remain operational.

Future EV Models and Partnerships

Last August, Fisker announced plans for the $30,000 Pear, the $45,000 Alaska pickup, and a $385,000 grand tourer. The company also hinted at a potential partnership with Foxconn for the production of the Pear EV in the U.S. However, recent updates suggest that the partnership with Foxconn may have dissolved, and some of these projects are delayed or on pause as negotiations continue with the unnamed automaker for potential investment and collaboration on EV platforms.

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