Fisker pauses Ocean SUV production amid financial hurdles
Fisker, the renowned US-based EV maker, has put a six-week pause on production of its Ocean electric SUV. This decision is a result of the company's ongoing struggle to secure essential financial backing, despite a recent influx of $150 million (around Rs. 1,250 crore) from an anonymous existing investor. The temporary halt is a strategic move by Fisker as it continues negotiations with a major automaker, speculated to be Nissan.
Nissan's potential investment in Fisker is under consideration
Fisker is said to be in talks with a leading carmaker, suspected to be Nissan, regarding additional funding. These discussions could potentially culminate in an investment or strategic alliance that would strengthen the EV maker's future operations. Reports indicate that the talks revolve around a potential $400 million (about Rs. 3,328 crore) investment from the Japanese marque. If this deal comes to fruition, the automaker would acquire access to Fisker's EV technology, including the platform used for the Fisker Alaska.
Fisker's temporary plans and inventory status
During this production pause, Fisker intends to adjust inventory levels and bolster its strategic and financing initiatives. The company revealed that it produced roughly 1,000 units of Ocean e-SUV between January 1 and March 15, and delivered about 1,500 units. At present, the carmaker's inventory contains around 4,700 units with an estimated value exceeding $200 million (roughly Rs. 1,663 crore). These steps are part of the company's strategy to navigate its current financial difficulties.
Fisker reallocates resources after suspending PEAR EV's development
The production suspension comes on the heels of Fisker's recent decision to cease development of its budget-friendly compact EV, the PEAR hatchback. The decision was made following the company's reported loss of $463.6 million (approximately Rs. 3,859 crore) in the fourth quarter of 2023. The brand now aims to channel its remaining financial resources toward boosting the Ocean's production and rolling out software updates for the vehicle, as part of its strategic realignment.
