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(Reuters) -Fisker’s talks with a major automaker for a possible deal have collapsed, it said on Monday amid growing uncertainty for the cash-strapped startup that last week halted production of electric vehicles.
Trading in shares of the company, which did not name the automaker it was in talks with, was suspended pending an announcement.
Fisker also said it will be unable to meet a closing condition related to its attempt to raise up to $150 million in financing by selling convertible notes after missing an interest payment.
Separately, Fisker said he would ask investors to vote on a proposal for a reverse stock split at a shareholder meeting on April 24, as he seeks to maintain compliance with Nasdaq listing rules.
Reuters had reported earlier this month that Nissan was in advanced talks to invest in the company; However, that same day, the Japanese automaker held an event where it announced a long-term business plan, including its electric vehicle strategy, and said it was looking for partners in the United States.
Raising funds has been difficult for loss-making electric vehicle startups, which have little revenue as they struggle to ramp up production and deliver to customers, as the companies battle stiff competition and a tough economy.
Shares of the electric vehicle startup have plunged this year, losing more than 90% of their value, after it flagged a risk of concern in February and halted investments in future projects until it secured a partnership with an automaker. .
Fisker moved to a dealer-partner model earlier this year after delivering less than half of the vehicles it made in 2023 due to logistics issues.
(Reporting by Zaheer Kachwala and Akash Sriram in Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur)
