Fisker gets a lifeline from Nissan with a $400 million deal

Fisker, the electric vehicle startup that has been struggling with financial and operational challenges, has received a boost from Nissan, the Japanese automaker that has been looking for ways to expand its presence in the electric vehicle market. According to Reuters, the two companies are close to finalizing a deal that would see Nissan invest over $400 million in Fisker’s truck platform and build Fisker’s Alaska electric pickup truck at one of its U.S. plants.

Fisker needs cash and partners to survive

Fisker, which was founded by Danish designer Henrik Fisker, has been trying to make a comeback in the electric vehicle industry after its previous bankruptcy in 2013. The company went public last year through a merger with a special purpose acquisition company (SPAC), and announced plans to launch its first electric SUV, the Ocean, in 2022.

However, Fisker has faced several hurdles and setbacks, such as delays in production, supply chain issues, regulatory uncertainties, and rising competition. The company also warned last week that it may not be able to continue as a going concern if it fails to raise more funds or secure strategic partnerships. Fisker reported a net loss of $589.2 million for 2023, and said it had $985.6 million in cash and equivalents as of December 31, 2023.


Nissan wants to gain an edge in the electric vehicle market

Nissan, on the other hand, has been seeking to regain its leadership position in the electric vehicle market, which it pioneered with its Leaf hatchback in 2010. However, the company has faced stiff competition from rivals such as Tesla, Volkswagen, and Hyundai, and has lagged behind in innovation and profitability.

Nissan has recently announced a new strategy to focus on its core markets and products, and to leverage its alliance with Renault and Mitsubishi. The company has also unveiled a new electric crossover, the Ariya, which is expected to go on sale later this year. Nissan has also expressed interest in entering the electric pickup truck segment, which is expected to grow rapidly in the U.S. and other markets.

The deal could benefit both parties

According to Reuters, the deal between Fisker and Nissan could be signed as early as this month, subject to due diligence and final approval. The deal would involve Nissan investing over $400 million in Fisker’s truck platform, which is based on a modified version of the Ocean’s platform. Nissan would also agree to build Fisker’s Alaska electric pickup truck, which was unveiled last year, at one of its two U.S. plants in Tennessee or Mississippi, starting in 2026.

The deal could benefit both parties, as Fisker would get access to cash and production capacity, while Nissan would get access to technology and design. The deal could also create synergies and economies of scale for both companies, as they could share components and suppliers. The deal could also help both companies to compete more effectively in the electric vehicle market, especially in the U.S., where demand for electric pickup trucks is expected to surge.

Leave a Reply

Your email address will not be published. Required fields are marked *