Fisker is talking to Nissan for a lifeline and electric pickup partnership

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Nissan has been revealed as the potential savior of Fisker. The Japanese automaker is reportedly talking with Fisker to invest in the company and partner on electric pickup trucks.

Earlier today, we reported on Fisker’s disastrous fourth-quarter results showing that the electric vehicle startup lost $400 million in 2023 and it now has less than $400 million of cash on hands.

The automaker had to admit that it wouldn’t be able to continue operations past next year without a big cash injection.

It did reveal that it was talking to a “large automaker” about an investment that could save the company.

Now, Reuters reported that the automaker in question is Nissan:

Nissan is in advanced talks to invest in electric vehicle maker Fisker (FSR.N), in a deal that could provide the Japanese automaker with access to an electric pickup truck while giving the struggling startup a financial lifeline, according to two people familiar with the negotiations.

The deal would reportedly involve Nissan investing $400 million in Fisker. It would also involve Nissan building the Alaska pickup truck unveiled by Fisker last year at one of its US plants.

On top of it, Nissan could use the Alaska platform to build its own electric pickup truck.

Neither Nissan nor Fisker commented on the report.

Fisker’s stock dropped by more than 50% today after the release of its earnings, but the stock recovered a bit after the report that Nissan is considering investing.

The stock currently trades at a valuation of $295 million.

Electrek’s Take

I’m not sure what to think about it. I’ve never been a big fan of Fisker, and I’ve warned people about investing in the company before.

If the report is true, I don’t know what Nissan sees in this. If they are behind on developing electric pickup trucks, it might be worth it for them, but I think that any significant investment would be a takeover the company.

It is now worth less than $300 million and that might be an attractive investment as a company that had $200 million in revenue last quarter in the growing EV market, but the looks are deceiving.

As I’ve highlighted before, Fisker was desperate in its previous fundraising efforts and took big convertible notes, which now add up to $1.2 billion, according to its last SEC filing.

Currently, there’s just no way Fisker can manage to pay that back and therefore, they will convert to stock and drastically dilute it for current shareholders.

So I don’t see a good outcome here other than Nissan picking the whole company up for cheap and accelerating its EV programs with it.

What do you think? Let us know in the comment section below.

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