Japanese automaker Nissan Motor Co Ltd NSANY is reportedly in advanced discussions to invest in California-based electric vehicle (EV) manufacturer Fisker Inc. FSR.
What Happened: Nissan is discussing investing over $400 million in Fisker’s truck platform and manufacturing Fisker’s proposed Alaska pickup from 2026 at one of its U.S. assembly plants, Reuters reported. Nissan would then also develop its own electric pickup on the same platform.
The deal, which could be finalized this month, would provide a much-needed financial boost to Fisker, which recently announced that it might not be able to continue as a going concern. A partnership with Fisker could meanwhile help Nissan enter the growing U.S. electric pickup market, the report added.
Nissan and Fisker did not immediately respond to Benzinga's request for comment.
Why It Matters: The report on a potential investment comes at a critical time for Fisker, which is grappling with financial difficulties. The company recently announced plans to lay off 15% of its workforce due to concerns about its ability to operate over the next 12 months.
On Thursday, Fisker reported preliminary fourth-quarter revenue of $200.1 million, an increase of $128.3 million from the prior year's quarter, and a preliminary net loss of $1.23 per share.
"2023 was a challenging year for Fisker, including delays with suppliers and other issues that prevented us from delivering the Ocean SUV as quickly as we had expected…” CEO Henrik Fisker said.
The company ended 2023 with $396 million in cash, but $70 million is restricted.
Price Action: Fisker shares closed down 34% at $0.48 on Friday, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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